Personal loans reach record high of over €750 million in Q2 2025, with car loan values up by almost 16% and green loans up over 24% year on year – BPFI Personal Loans
- Highest quarterly loan activity levels on record, across all categories, with 70,958 loans valued at almost €754 million
- Quarterly car loan volumes surpassed 20,000 for the first time on record in Q2 2025, valued at €260 million
- The largest jump was seen in green personal loans which rose in value by 24.4% year on year to €39.3 million and by 30.5% in volume over the same period to 1,635.
- In the first half of 2025, there were 131,728 personal loan drawdowns valued at more than €1.4 billion, more than double the volume and value in the same period of 2021.
Friday 7th November 2025 – Personal loan activity including car, home improvement and green loans, reached record highs in Q2 2025 with loan values up by 17.6% to €754 million, and volumes up by 16.9% to 70,958 compared to Q2 2024. These were the highest quarterly levels since the data series began in 2020. 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 from the report:
Total loans
- There were 70,958 personal loan drawdowns in Q2 2025, valued at €754 million, representing an increase of 16.9% in volume and 17.6% in value year on year.
- The average personal loan value rose by €60 year on year to €10,620.
Car loans
- The number of car or auto finance loans rose by 13.1% year on year to 20,131 in Q2 2025, while the value of loans increased by 15.8% to €260 million.
- The average car loan in Q2 2025 was €12,905 up from €12,605 a year earlier.
Home improvement loans
- There were 17,740 home improvement loans in Q2 2025, up by 10.3% year on year. These were valued at €228 million, 12.5% higher than Q2 2024.
- The average home improvement loan value in Q2 2025 was €12,823 up from €12,568 on Q2 2024.
Other loans – including education, holidays and special occasions such as weddings
- A total of 33,087 for other purposes were drawn down in Q2 2025, a rise of 23.5% in volume year on year, with values rising by 24.3% to €266 million over the same period.
- The average loan value in Q2 2025 for other loans increased to €8,049 up from €7,997 in Q2 2024.
Green loans
- The value of green personal loans rose by 24.4% year on year to €39.3 million in Q2 2025. The number of green loans rose by 30.5% over the same period to 1,635.
- The average green loan was relatively high at €24,051 in Q2 2025, more than twice the average of €10,620 for all loans in the same quarter.
Commenting on today’s report, Brian Hayes, Chief Executive, BPFI said: “Our latest figures indicate a sustained increase in demand for personal lending in Q2 2025, achieving the highest quarterly loan activity levels on record across all categories. Notably, car or auto finance loans exceeded 20,000 for the first time since the data series began in 2020, with 20,131 loans valued at €260 million. Home improvement loans also showed steady growth, with 17,740 loans in Q2 2025, up 10.3% year-on-year while other personal loans, including those for education, holidays, and special occasions such as weddings, totalled 33,087 in the same period, rising by 23.5% compared to Q2 2024.”
Mr Hayes continued: “However, the largest jump was seen in green personal loans in Q2 2025, albeit from a lower base. Comprising green car and green home improvement loans, these loans rose in value by 24.4% year on year to €39.3 million and by 30.5% in volume to 1,635, the highest activity levels since the green loan data series began in 2022. We also saw the average green loan increase by €1,118 year on year to €24,051, more than twice that of the overall average personal loan value of €10,620.”
Reflecting more broadly on personal loan activity since the start of the year, Mr Hayes added: “Looking at the first half of 2025, there were 131,728 personal loan drawdowns, valued at more than €1.4 billion, more than double the volume and value in the same period of 2021. These figures come as the Central Bank of Ireland reported that medium-term household loans (over 1 year and up to 5 years) exceeded €12 billion in outstanding value by the end of September 2025, the highest level since October 2012.”
The BPFI Personal Loans Report Q2 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 125 member institutions and associates, including licensed domestic and foreign banks and institutions operating in the financial marketplace.
For further information contact: Fiona Murphy, Head of Communications, Fiona.murphy@bpfi.ie or Jillian Heffernan, Director of Communications, jillian.heffernan@bpfi.ie.
