Loans for Home Improvement is the fastest growing segment

Banking & Payments Federation Ireland (BPFI) have recently published the BPFI Personal Loans Report for Q4 2021. The new report, which will be issued on a quarterly basis, details the volume, values and uses of personal loans drawn down from participating BPFI member banks.

Loans for home improvement is the fastest growing segment increasing in value terms by 20% to €462 million.

The following are the key figures:

Total Loans:

  • A total of 39,803 personal loans were drawn down in Q4 2021 valued at €344 million representing an increase of 34% in volume and 20% in value year on year
  • Looking at 2021 as a whole more than 140,000 personal loans were drawn down in 2021, 12% more than in 2020. The value of drawdowns rose by 13% to almost €1.4 billion.
  • The average personal loan fell to €8,652, the lowest level since the data series began in 2020

Home Improvement loans:

  • In Q4 2021 some 11,906 personal loans worth €116 million were drawn down for home improvements, some 34% higher in volume terms and 20% higher in value terms than in Q4 2020.
  • Over the course of 2021 loans for home improvement were the fastest growing segment, increasing in volume terms by 24% to 43,336 and in value terms by 20% to €462 million.
  • The average home improvement loan was €9,748 in Q4 2021 down from €10,899 on the fourth quarter of 2020.

Commenting on the report, Brian Hayes, Chief Executive, BPFI said: “The report is a brand new set of data published by BPFI providing a comprehensive overview of the numbers and types of personal loans which are being drawn down by consumers.

For the first time ever these new figures are giving us an insight into the significant scale of personal lending by BPFI members, with current loan volumes equating to 2,756 loans drawn down per week, 833 of which are for home improvements. We plan to publish this data on a quarterly basis and expect to see some interesting trends emerging over time. The Covid-19 restrictions had a substantial negative impact on lending activity especially in Q2 2020 but with improving consumer confidence, we expect demand for
personal loans to increase in 2022.”

Download the BPFI Personal Loan Report time series https:// Drawdowns_time_series_Q4_2021.xls. or see for further details.