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Strong first-quarter growth as home improvement loans jump 26%

LA Banking & Payments Federation Ireland (BPFI) has released the BPFI Personal Lending Report for the first quarter of 2022, showing strong growth in personal lending activity compared to the same period last year.

Here are the key numbers:

A total of 39,524 personal loans were drawn in the first quarter (Q1) 2022, worth €384 million Personal loan drawing activity increased in volume by 36.4% year-on-year and in value 32.9% over the same period.

The average personal loan was €9,963, the highest level since Q2 2021.

The number of home improvement loans increased by 26.2% year on year to 10,837, while the value increased by 31% to 126 million euros over the same period.

A total of 11,901 unsecured auto loans were drawn in the first quarter of 2022, worth €134 million, with volume increasing 10.2% year-on-year and values ​​increasing 14.1% year-on-year. period.

The number of education loans increased by 56.5% to 3,067 in the first quarter of 2022, with the value increasing by 61.5% to 16 million euros over the same period.

The average loan value increased in most segments between the first quarter of 2021 and the first quarter of 2022, with the average home improvement loan increasing by around €400 to €11,590 and the average car loan from nearly €400 to €11,285.

Commenting on today’s report, Brian Hayes, Managing Director of BPFI, said:

“This is the second installment of BPFI’s new personal loan report, which provides a comprehensive overview of the number and types of personal loans taken out by consumers.

“This latest report shows that in the first quarter of 2022, there was strong growth in personal loans with volumes and values ​​up 36.4% and 32.9%, respectively, year-on-year.

Note the growth in home improvement loan volumes, which increased by 26%, and education loans, which jumped by 56%.

“This largely reflects the fact that in the first quarter of 2021 the country was in lockdown while 12 months later life has essentially returned to normal, construction has resumed and education is back to class.

“And on auto loans, where the first quarter of the year is a key period for new car sales, it’s interesting to see that auto loans increased by 10.2%, the average auto loan having increased by nearly €400 to reach €11,285.”