Personal loan drawings in Ireland jump 20% to 414 million euros
The value of personal loans taken out by customers of Ireland’s major banks in the second quarter jumped more than 20% to 414 million euros, according to new figures from the banking industry group.
In releasing its quarterly report on personal loans, the Irish Banking and Payments Federation (BPFI) said the levy on loans was the largest amount in a three-month period since it began reporting the data in 2020.
On an annualized basis, €1.5 billion was drawn in the 12 months to June 2022, some 4.7% more than in the previous 12 months.
The BPFI report shows that 141 million euros were drawn in loans for home improvement projects, which is 12.7% more than in the same period of 2021.
This is the highest level since the data series began in 2020.
On the other hand, the value of personal loan drawings for car or automobile financing fell by 0.4% to €128 million.
The value of loans for other purposes, which includes loans for education, holidays and weddings, increased 59.2% year-on-year to 146 million euros.
The figures cover second quarter lending by AIB, Bank of Ireland, Permanent TSB, KBC and Avant Money.
This is the third consecutive quarter of growth in personal loan drawings. During the first three months of the year, the business of drawing personal loans increased in volume by 36.4% over one year and in value by 32.9% to €384 million over the same period.
In the first quarter, the average loan value increased across most segments, with the average home improvement loan up around €400 to €11,590 and the average auto loan up nearly €400 to €11,285. €.