The value of personal loans drawn down in 2022 increased 18.8% year-on-year to €1.6bn, with consumers borrowing money for home improvement, car purchases, education, holidays and weddings.

Figures from the Banking & Payments Federation Ireland (BPFI) show continued strong growth in personal loans activity n 2022, including the fourth quarter when €390m was drawn down, an increase of 14.4% year-on-year.

Some €126m was loaned out for home improvements in Q4, up 8.7% from the same period of 2021, and a further €126m was borrowed for car finance (+18%). Loans for education, holidays and weddings totalled €142m (+16.8%).

"The value of home improvement loans rose by 15.3% year on year to €530m, meaning they have surpassed car loans (€520m) for the first time," said Brian Hayes, CEO of BPFI..

"The fastest growing segment remains the ‘other loans’ category which includes education, holidays and special occasions such as weddings with a jump of 36% on 2021, to €580m.”

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