Car loans jumped by almost 50% in value as personal loan drawdowns reached record high of €539 million in Q2 2023 – BPFI Personal Loans Report
Thursday 9th November 2023 – The value of car loans has jumped by almost 50% according to the Banking & Payments Federation Ireland (BPFI) Personal Loans Report for Q2 2023 as the total value of personal loan drawdowns reached a record high of €539 million in the same period, the highest level since the data series began in Q1 2020.
Looking at the various loan types:
- The number of car loans rose by 35.9% year on year to 15,828, while the value of loans jumped by 47.7% to €189 million, the highest volumes and values since the data series began in Q1 2020.
- The number of home improvement loans rose by 26.8% year on year to 15,811 while the value rose by 22% to €172 million. These were also the highest levels of activity since Q1 2020.
- A total of 24,746 loans for other purposes, including education, holidays and special occasions such as weddings were drawn down, a rise of 22.5% year on year, with values also rising by 22.6% to €178 million over the same period.
- The value of green personal loans rose to €29.3 million in Q2 2023, an increase of 174.6% year on year while the number of green loans jumped by 137.6% over the same period to 1,250.
- The average green loan was relatively high at €23,419 in Q2 2023, compared with the average for all loans at €9,562.
Commenting on today’s report, Brian Hayes, Chief Executive, BPFI said: “Today’s report shows a continued upswing in personal loan drawdowns in Q2 2023 with 56,385 drawdowns valued at €539 million. This represented a year-on-year rise of 27.2% and 30.2% in volume and value terms respectively, both of which are the highest levels since the data series began in Q1 2020. We can see in particular a significant jump of almost 50% (47.7%) in the value of car loans year-on-year to €189 million as well as an increase of over 35% (35.9%) in volumes to 15,828 loans. The average car loan increased by €955 to €11,922 suggesting that we are seeing not only rising car prices but also an increased consumer appetite for electric and luxury vehicles. According to the CSO, almost 14,000 new electric cars were registered in the first half of 2023, about 65% more than in the first half of 2022.”
“The sharpest increases, however, can be seen in green personal loans, albeit starting from a relatively low base compared to other categories. These loans rose in value by almost 175% (174.6%) year-on-year to €29.3 million in Q2 2023, while the number of loans jumped by almost 140% (137.6%) to 1,250 over the same period. The average green loan was also relatively high at €23,419, compared with the average for all loans at €9,562.”
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.
Contact: Jillian Heffernan, Director of Communications, 087 9016880, jillian.heffernan@bpfi.ie.
