Jump in personal loans taken out for home improvements, education and weddings

The value of personal loans taken out by households has surged by a fifth over the past 12 months, despite the cost-of-living crisis, a report shows.

Banking and Payments Federation Ireland said there was a 60% increase in the value of loans taken out for education, holidays and weddings in the 12 months to the end of June.

The latest figures showed 414 million euro of personal loans were drawn down in the second quarter of this year, up 20% on the same period last year.

On an annual basis, 1.539 billion euro was drawn down in the 12 months to the end of June – 4.7% more than in the 12 months ending in March.

Some 141 million euro was drawn down in home improvement loans in the second quarter of this year, 12% more than the same period last year.

The value of personal loan drawdowns for car or auto finance fell by 0.4% year on year to 128 million euro.

The value of loans for other purposes including education, holidays and weddings increased to 146 million euro – a 60% increase.