Value of car loans up by almost 40% as personal loan drawdowns reach new high of €552 million in Q3 2023 – BPFI Personal Loans Report
Growth seen across all other categories, including green loans, home improvement loans and loans for other purposes such as holidays and special occasions
Friday 9th February 2024 – The value of car loans surged by 39.6% year on year, following a pattern of recent upward trends, according to the Banking & Payments Federation Ireland (BPFI) Personal Loans Report for Q3 2023. Overall, the report shows that the value of personal loan drawdowns reached a new high of €552 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 25.5% year on year to 14,994, while the value of loans jumped by 39.6% to €189 million, the highest Q3 volumes and values since the data series began in Q1 2020.
- The number of home improvement loans rose by 13.1% year on year to 14,419 while the value rose by 23.9% to €174 million. These were the highest levels of activity since Q1 2020.
- A total of 23,991 loans for other purposes, including education, holidays and special occasions such as weddings were drawn down, a rise of 7.1% year on year, with values also rising by 14.1% to €189 million over the same period.
- The value of green personal loans rose to €27 million in Q3 2023, an increase of 143.7% year on year while the number of green loans jumped by 119.3% over the same period to 1,250.
- The average green loan was relatively high at €21,603 in Q3 2023, compared with the average for all loans at €10,336.
Commenting on today’s report, Brian Hayes, Chief Executive, BPFI said: “Figures from our latest report show a continued rise year on year in personal lending in the third quarter of 2023, with a total of 53,404 loan drawdowns valued at €552 million. This represents an increase of 13.4% and 25% in volume and value terms respectively, compared to the same period in 2022, both of which are the highest levels since the data series began in Q1 2020. While growth was seen across all categories, including home improvement loans and loans for other purposes such as holidays and special occasions, we have continued to see a particular surge in car loans which have risen in value by almost 40% to €189 million and by over a quarter in volume to 14,994 drawdowns. These were the highest Q3 car loan volumes and values recorded to date, due in part to the continued growth in new car sales, especially electric cars, which accounted for 19% of new cars licensed for the first time in 2023, according to the Central Statistics Office. The average loan value was up by more than €900 to €10,336 in Q3 2023, car or auto finance loans are up by €1,268 to €12,599, likely reflecting higher car prices and growth in luxury and e-vehicles.”
“Positive momentum also continued in green personal loans with a significant increase of 143.7% year on year to €27 million in Q3 2023, although this is starting from a low base compared to other categories. The average green loan remained relatively high at €21,603, up from €19,437 compared to the same period in 2022.”
The BPFI Personal Loans Report Q3 2023 can be downloaded here.
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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, 087 9740046, Fiona.murphy@bpfi.ie or Jillian Heffernan, Director of Communications, 087 9016880 or jillian.heffernan@bpfi.ie.
