The value of personal loans, for the likes of weddings, home renovations and electric cars, exceeded €3 billion over a 12-month period for the first time, new figures from Banking and Payments Federation Ireland (BPFI) show.
A total of 281,814 personal loans were drawn down in the 12 months ending March 2026 – the highest volumes since the data series began.
Today’s BPFI figures show that 69,604 personal loan drawdowns were made in the first quarter of the year, valued at €788m, and marking an increase of 14.5% in volume and 15.3% in value year on year.
The average personal loan value rose by €77 year on year to €11,316.
BPFI said the number of car finance loans rose by 14.4% year on year to 22,366, while the value of loans increased by 14.1% to €296m.
It noted that the average car loan in the first quarter of 2026 was €13,233, down from €13,267 a year earlier.
Annual figures show that there were 81,791 car or auto finance loans valued at almost €1.1 billion in the 12 months ending March 2026.
The figures also show that 17,334 home improvement loans were drawn down in the first three months of the year, up by 12.8% year on year. These were valued at €229m, 15.4% higher than the same time last year.
The average home improvement loan value was €13,186 up from the average of €12,886 the same time last year.
Meanwhile, a total of 29,904 loans for other purposes were drawn down in the first quarter, a rise of 15.7% in volume year on year, with values rising by 16.7% to €263m over the same time.
The average value for other loans was €8,799 up from €8,725 the same time last year.
Ali Ugur, Chief Economist at BPFI, said that in line with recent trends, the largest growth in activity was seen in green personal loans (albeit from a lower base) which jumped by 22.9% in both volume and value terms year on year, reaching €42.7m in value.
He noted that green loans include green car and home improvement loans and the growth in these segments may reflect broader trends in the green economy.
“In annualised terms there were 281,814 personal loans drawn down in the 12 months ending March 2026. These are the highest volumes since the data series began in 2020, while the value of personal loan drawdowns over the same period exceeded €3 billion for the first time, pointing to continued consumer confidence with many households seeking to invest in major life purchases,” the economist added.
