THERE HAS BEEN an increase in the number of personal loans taken out over the past year, with credit soaring for for home improvements, education and weddings in particular. 

The Banking & Payments Federation Ireland (BPFI) has reported the value of personal loan drawdowns increased by 20.1% year on year in Q2 2022 to €414 million.

BPFI said this was the most since the data series began in 2020. On an annualised basis,some 4.7% more was drawn down than in the twelve months ending March 2022, coming to €1,539 million in the twelve months ending in June this year.

However, loans for cars fell slightly, which tallies with data elsewhere that new car registrations have been down by almost a fifth. 

The value of personal loan drawdowns for car or auto finance decreased by 0.4% year on year to €128 million.

Elsewhere, the value of loans for other purposes which includes loans for education, holidays and weddings increased by 59.2% year on year to €146 million.

The figures come amid strong concerns over the cost-of-living, with inflation hitting a 38-year-high this year.

When broken down, the banking sector representative body said that home improvement loans saw some €141 million drawn down in Q2 2022, 12.7% more than in the same period of 2021.

This was again the “highest level since the data series” began in 2020, the BPFI said.