Significant rise in car and home improvement loans – BPFI
There has been a significant jump in the number of people borrowing money to buy cars and make home improvements, according to latest figures from the Banking & Payments Federation Ireland (BPFI).
It said that during the third quarter of last year more than 17,000 car loans were drawn down – nearly 14% higher than the same period in 2023 – while the value of those loans rose by more than a fifth to €229 million.
The average car loan for the period (July-September 2024) was €13,434, which was up by €835 year on year.
The BPFI said this likely reflects the continued shift towards electric and plug-in hybrid electric vehicles.
Borrowing for home improvements also saw a surge, with a 12.3% increase to 16,194 loans valued at €204 million.
The average home-improvement loan during Q3 of 2024 was €12,606.
The BPFI figures come from its members, which include the so-called pillar banks – AIB, Bank of Ireland, and PTSB.
They indicate that personal loan values across all categories reaches record levels in the period, reaching €670 million.
Meanwhile, the average green loan reached its highest point to date at just over €24,000.
BPFI Chief Executive Brian Hayes said it is “encouraging to see positive momentum in green personal loans”.
“These loans comprise green car and green home improvement loans. While the SEAI has reported that 54,000 retrofits were completed to a total value of €420 million in 2024, of which 22,000 were for upgrades to B2, the rollout of the Home Energy Upgrade Loan Scheme by Government last year, could support further growth in the market going forward,” he added.
Article Source – Significant rise in car and home improvement loans – BPFI – RTE
