Personal loan activity in Ireland reached a new quarterly peak last year, driven by strong demand for car finance, home improvement projects, and green lending, according to the latest figures from Banking & Payments Federation Ireland.
The data shows that total personal loan values rose by 15.7% to €776 million, while loan volumes increased by 17.6% to 73,626 compared with the same quarter in 2024. This represents the highest quarterly level recorded since the BPFI began tracking this data in 2020. The figures follow a previous record of €754 million in personal loan drawdowns during the second quarter of the year.
Car lending was a major contributor to this growth. The number of car loans increased by 22.7% year on year to 20,954, while the total value of car loans rose by more than 16% to €267 million. This trend reflects continued consumer demand for vehicle purchases, including electric and hybrid models.
The most significant increase was seen in green personal loans. These loans rose by 31.5% in value year on year to €42.1 million and increased by 34.5% in volume to 1,788 loans. The average green loan value stood at €23,567 in the third quarter, more than double the overall average personal loan value of €10,537. BPFI noted that this growth may be linked to the Home Energy Upgrade Loan Scheme, introduced in 2024 to support homeowners investing in energy efficiency improvements. More than 750 loans have been drawn down under the scheme so far, signalling strong consumer engagement.
Home improvement loans also continued to grow, with values rising by 11.5% year on year to €230 million. The average home improvement loan increased modestly to €12,758, up from €12,606 in the same period the previous year.
Loans for other purposes, including education, holidays, and major life events such as weddings, also saw notable growth. A total of 34,618 loans were drawn down between July and September, representing an 18% increase in volume. The total value of these loans rose by 17.4% to €278 million.
Despite the overall growth in lending, the average personal loan value fell by €172 year on year to €10,537, marking its first decline since early 2023. Average car loan values also decreased by €677 to €12,757, while average green loan values fell by €538 over the same period.
Looking at the broader picture, BPFI figures show that in the first nine months of 2025 there were 205,354 personal loan drawdowns valued at more than €2.2 billion. This represents more than double the volume and value recorded during the same period in 2021. In addition, data from the Central Bank of Ireland indicates that outstanding medium-term household loans reached almost €11.9 billion by the end of September 2025, the highest level since mid-2012.
The BPFI Personal Loan Report is published quarterly and provides an overview of personal loan volumes, values, and borrowing purposes across participating member banks.
Disclaimer: This article is based on publicly available information and is intended for general guidance only. While every effort has been made to ensure accuracy at the time of publication, details may change and errors may occur. This content does not constitute financial, legal or professional advice. Readers should seek appropriate professional guidance before making decisions. Neither the publisher nor the authors accept liability for any loss arising from reliance on this material.
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