Personal loan activity surged 15.7 per cent in value terms to a record high of €776 million in the third quarter of 2025, new data from the banks shows.
The data from Banking and Payments Federation Ireland (BPFI), which is the representative body for the banks, shows the volume of loans rose by 17.6 per cent to 73,626 year-on-year.
These were the highest quarterly levels across all categories, which cover car, home improvement and green loans, since the data series began in 2020.
The data suggests the figures were attained due to the increase in the number of people seeking loans, as the average personal loan value fell by €172 year-on-year to €10,537.
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The number of car or auto finance loans rose by 22.7 per cent to 20,954, while the value of these loans increased by 16.5 per cent to €267 million. The average car loan was €12,757, down from €13,434 a year earlier.
There were 18,054 home improvement loans, which was an increase of 11.5 per cent. These were valued at €230 million, 12.8 per cent higher than a year earlier. The average home improvement loan value was €12,758, up slightly from €12,606.
A total of 34,618 loans were drawn down for other purposes, which included education, holidays and special occasions such as weddings.
That represented a rise of 18 per cent in volume, while values were up by 17.4 per cent to €278 million over the same period. The average loan value for these was €8,035, down from €8,075.
The value of green personal loans rose by 31.5 per cent to €42.1 million. The number of green loans increased by more than a third over the same period to 1,788. The average green loan was relatively high at €23,567, more than twice the average of €10,537 for all loans.
[ Loans for cars, homes and special occasions all hit record highsOpens in new window ]
BPFI chief executive Brian Hayes said green loans also saw the highest activity levels since the group began tracking such data in 2022.
“This surge may be partly attributed to the Home Energy Upgrade Loan Scheme introduced in 2024, which aims to make residential energy upgrades more accessible and affordable for eligible homeowners,” he said.
“Over 750 loans have been drawn down to date, indicating strong consumer interest.”
In the first nine months of 2025, there were 205,354 personal loan drawdowns, amounting to more than €2.2 billion, BPFI data also shows. That represents more than double the value recorded during the same period in 2021.
Additionally, the Central Bank reported that medium-term household loans (over one year and up to five years) reached an outstanding value of almost €11.9 billion by the end of September, which was the highest level since June 2012.
Data over the past year has consistently shown Irish consumers remain concerned about the uncertain economic outlook and the cost-of-living squeeze.
The credit union Consumer Sentiment Index was 61.2 in December, almost unchanged from the 61 rating reported for November.
Still, the headline value was markedly lower than a year earlier on the back of risks to the economy and cost-of-living pressures, the report said.
It was also by “some considerable distance below the near 30-year survey average of 83.6”, it said.
“This suggests that 2025 has been a worrisome year for Irish consumers and those worries, for a range of reasons, continue to weigh on sentiment,” the report said.
The report’s author, Austin Hughes, said that while the Irish economy was still growing strongly, the jobs market was slowing.
