Car loan values surged by 25% to €259 million in Q1 2025, the highest level on record, as personal loan activity continues to rise – BPFI Personal Loans Report
- Overall loan drawdown volumes and values also reached a new high with a total of 60,770 personal loans amounting to €683 million
- Growth seen across all categories, including green loans up by 29.3% to €35.1 million, as well as loans for other purposes such as holidays and special occasions up 27.5% to €226 million
Friday 15th August 2025 – Car loan volumes and values reached their highest levels on record in Q1 2025, with 19,552 loans valued at €259 million, according to the most recent Banking & Payments Federation Ireland (BPFI) Personal Loans Report. Figures show that personal loan activity grew across all categories including green and home improvement loans as well as loans for education, holidays and special occasions. The BPFI Personal Loan Report, which is issued on a quarterly basis, details the volume, values and uses of personal loans drawn down from participating BPFI member banks.
The following are the key figures for Q1 2025:
Total loans
- A total of 60,770 personal loans were drawn down valued at €683 million, representing an increase of 22.1% in volume and 24.1% in value year on year.
- The average personal loan value rose by €177 year on year to €11,239.
Car loans
- The number of car loans rose by 21.5% year on year to 19,552, while the value of these loans increased by 25.0% year on year to €259 million.
- The average car or auto finance loan increased by €366 to €13,267.
Home improvement loans
- There were 15,372 home improvement loans, up 18.2% year on year. These were valued at €198 million, 19.2% higher than the previous year.
- The average home improvement loan increased by €116 to €12,886.
Other loans – including education, holidays and special occasions such as weddings
- A total of 25,846 loans for other purposes were drawn down, a rise of 25.0% in volume year on year, with values rising by 27.5% to €226 million over the same period.
- The average loan value for other loans increased by €170 to €8,725.
Green loans
- The number of green loans rose by 26.6% year on year to 1,531 while the value of green personal loans jumped by 29.3% over the same period to €35.1 million.
- The average green loan rose by €474 at €22,906 in Q1 2025, more than twice the value of the average for all loans of €11,239.
Commenting on today’s report, Anthony O’Brien, Head of Sector Research & Analysis, BPFI said: “Our latest figures reveal continued strong demand for personal loans, with Q1 2025 marking a new high for overall drawdown volumes and values. A total of 60,770 personal loans were issued during the quarter, amounting to €683 million in value, a 22.1% and 24.1% increase in volume and value respectively, compared to the same period last year. The average loan value also reached a record high of €11,239 in Q1 2025, up €177 year on year. When viewed on an annualised basis, we see there were 240,423 personal loans drawn down in the four quarters ending Q1 2025, valued at almost €2.6 billion. This was more than double the value in the twelve months ending Q1 2021.”
“Looking more closely at key categories, there has been a continued surge in car loans which grew by 21.5% year on year to 19,552, while the value of these loans increased by 25.0% to €259 million over the same period. These are the highest car loan volumes and values since the data series began in 2020. The continued growth in electric and plug-in hybrid electric vehicles is likely contributing to these increases, which according to CSO figures, accounted for 32.2% of new private cars licensed in Q1 2025. This is up from 22.1% in Q1 2024, although it’s worth noting that personal loans are also used to finance second-hand car purchases. At the same time, home improvement loans increased in value by 19.2% to €198 million, while loans for other purposes, which include education, holidays and special occasions, rose in value by 27.5% to €226 million.”
The BPFI report also looks at green loan activity, as Mr O’Brien added: “While increases were seen across all categories, green personal loans, which comprise of green car and green home improvement loans, had the highest relative jump in value of 29.3% year on year to €35.1 million in Q1 2025 and in volume by 26.6% to 1,531. These are the highest activity levels since the green loan data series began in 2022. The average green loan rose by €474 year on year to €22,906, more than double the value of the average personal loan of €11,239.”
The BPFI Personal Loans Report Q1 2025 can be downloaded here.
ENDS/
Data Series: Personal loan report data from Q1 2020 onwards is available in Microsoft Excel format (*.xls) in the BPFI Personal Loan Report data series. BPFI data on green loans is available from Q1 2022. Download the BPFI Personal Loan Report time series here.
Note: Banking & Payments Federation Ireland (BPFI) represents the banking, payments and fintech sector in Ireland. Together with its affiliates, the Federation of International Banks in Ireland, and the Fintech & Payments Association of Ireland, BPFI has over 110 member institutions and associates, including licensed domestic and foreign banks and institutions operating in the financial marketplace.
Contact:
Fiona Murphy, Head of Communications, fiona.murphy@bpfi.ie or Jillian Heffernan, Director of Communications, jillian.heffernan@bpfi.ie
