Borrowing money has never been so easy

If you are not sure why you would want to borrow money, look no further than your local bank branch for suggestions. You can pick up a leaflet there that might give the following advice.

"Borrowing money enables you to buy something now that will benefit you immediately and pay for it over an agreed period. It could be a luxury, or it might be something important such as college fees or home improvements." Or you could just sit by the hall door and wait for a pre-approved loan offer to pop through the letter box. Expect more purchasing suggestions from this source: "a car, a new suite of furniture, home improvements or perhaps some new home computer equipment."

It couldn't be easier to arrange a personal loan. Whether it's by phone, by Internet, by mail, in the supermarket or over the counter, the whole process has been made as quick and as easy as possible. The mailing of pre-approved loans to groups of customers is common practice now and Bank of Ireland uses this method of marketing. According to a Bank of Ireland spokesman, the bank would lose market share if it didn't.

"Basically they are all doing it, so we have to, but the emphasis is still placed on quality lending and the ability to pay back."

Bank of Ireland has what it describes as "a rigorous credit scoring system" in place and reports a very low level of bad debts.

The bank's figures show an increase of 234 per cent in the level of non-residential personal lending from 1996 to 2000. AIB differs from Bank of Ireland in that it doesn't use pre-approved loan mailing. The bank hasn't ruled it out, but currently relies on the branch network and relationship management for personal loan business.

Forecourt finance is well established and a car buyer can arrange a finance package without making any direct contact with the financial institution involved. What consumers gain in convenience with this type of deal they may lose in choice and competitiveness. More recently, financial institutions have begun to join forces with other types of retailers to market lending opportunities to a specific audience. In December, Waterford Stanley announced a "consumer financing deal" with Friends First. People buying gas or oilfired cookers through the scheme were offered an unsecured loan of up to £20,000 (€25,392) to cover purchase, delivery, installation costs and anything else they wanted.

Around the same time Statoil Premium Club began the second round of mailing to members with a personal loan offer negotiated with GE Capital. Members were offered unsecured loans of up to £15,000, subject to approval. The net effect of all this activity is that consumers don't really have to go looking for loans these days. The offers and suggestions keep coming to them and it gets harder and harder to resist.