Total value of personal loans hits €670m
A total of 62,598 personal loans were drawn down valued at €670m, representing an increase of 17.2% in volume and 21.5% in value year on year. Picture: Pexels
A surge in car and home improvement loans has seen the value of personal loans hit record levels, passing €670m, a report from the Banking & Payments Federation Ireland (BPFI) showed.
Car loan values jumped 21.4% year on year to €229m while home improvement loan values rose by 17.6% to €204m, the BPFI report for Q3 in 2024 showed. The report details the volume, values and uses of personal loans drawn down from its member financial institutions.
A total of 62,598 personal loans were drawn down valued at €670m, representing an increase of 17.2% in volume and 21.5% in value year on year. The average personal loan value rose by €374 year on year to €10,709. BPFI chief executive Brian Hayes said:
The number of car loans rose by 13.9% year on year to 17,073, while the value of these loans increased by 21.4% year on year to €229m. The average car loan has now increased to €13,434, up €835 from the same period in 2023. “This likely reflects the continued shift towards electric and plug-in hybrid electric vehicles which accounted for 24.2% (28,251) of new private cars licensed in 2024,” said Mr Hayes.
Home improvement loans also increased in value by 17.6% to €204m. The average home improvement loan increased by almost €600 to €12,606.
‘Green loan’ values grew by 18.6% with the average green loan reaching its highest point to date at €24,105. Green loans comprise green car and green home improvement loans.
“While increases in were seen across all categories, it is encouraging to see positive momentum in green personal loans which jumped in value by 18.6% year on year to €32m in Q3 2024." said Mr Hayes.
"While the SEAI has reported that 54,000 retrofits were completed to a total value of €420m in 2024, of which 22,000 were for upgrades to B2, the rollout of the Home Energy Upgrade Loan Scheme by Government last year, could support further growth in the market going forward.”
Loans for other purposes, which include education, holidays and special occasions, had the biggest increase in value, up 25% to €237m. The average loan value for other loans increased by €179 to €8,075.
- The BPFI represents more than 110 banking, payments and fintech firms in Ireland, including Bank of Ireland, AIB, and PTSB.
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