Average interest rate on consumer loans drops significantly

Ireland now has the 11th highest interest rates in the eurozone up from 12th place in June

The Central Bank said: 'New floating rate consumer loans had a weighted average interest rate of 7.90% at end-July, while new fixed rate consumer loans had a weighted average interest rate of 5.05%.' File photo: Leah Farrell/Rollingnews.ie

The weighted average interest rate charged on new consumer loans dropped by 76 basis points to 6.72% during July, compared to the previous month, driven by a shift towards lower interest rate fixed rate lending, data from the Central Bank of Ireland shows.

The total volume of new consumer loans was €364m during the month, of which 59% was a floating rate, compared to 77% in June. The average rate is 57 basis points lower compared to the same month last year.