IRISH PEOPLE TOOK out a record-breaking €2.9 billion in personal activity loans last year.

The amount of loans rose by 19% from 2024 to 2025 to almost 273,000, while the value of loans rose by 18.6% to more than €2.9 billion over the same period, according to a new report from the Banking and Payments Federation Ireland (BPFI).

Over €1 billion of the money took the form of car loans. The 78,977 car loans show a 19.3% increase on last year, with a value 18.6% higher than 2024.

The average personal loan value decreased by €172 year-on-year to €10,253.

The BPFI categorises the loans into car or auto finance; home improvement; green personal; and other purposes.

Other purposes include the likes of holidays, weddings, education – and this category also exceeded €1 billion in value last year.

Green personal loans, which offer a lower rate when borrowed for something green, such as solar panels, energy-efficient heating controls, and electric vehicles, saw a massive spike in demand between 2024 and 2025.

The volume jumped 25.8% and the value jumped 27.7% to over €150 million. They are also significantly higher in value when assessed as an average, at €23,105 in the final quarter of last year – more than double the average value of all loans. 

Home improvement loans last year were valued at €868 million.

The final quarter of last year saw an increase of 20.3% in the volume of car loans compared to the year prior.

CSO data from March of this year shows there was a 5% increase in the number of new private cars licensed in that month compared to last year.

The number of new private electric cars licensed in March 2026 rose by 39% when compared with March 2025.

Paddy Comyn, head of automotive content and communications with DoneDeal Cars, told The Journal there has also been a spike in interest in pre-owned electric cars.

As more are purchased, there are more options for people to purchase pre-owned EVs, and they are becoming more affordable, he said, and many people are spurred on to make the jump as they become more mainstream. The rise in fuel costs has also played a significant role in their popularity. 

Depending on the lender, some green personal loans can also be used to purchase an EV.

BPFI’s chief executive Brian Hayes said the record drawdowns of personal loans “points to strong consumer confidence with many households continuing to seek finance to invest in major life purchases”.

He said it was notable that all loan categories saw rises, with the massive jump not attributable to any one type.

On the rise of green personal loans, Hayes said: “We know that energy costs have increased significantly this year.”

With the latest SEAI data showing a 186% increase in individual home energy upgrades at the start of this year, and “with the renewed focus on energy saving measures and renewable energy… it will be interesting to observe if personal loan trends in the coming months reflects any further shift in consumer priorities.”