Personal loan activity in Ireland reached new heights last year, driven by strong demand for car, home improvement, and green loans, according to the latest figures from the Banking & Payments Federation Ireland (BPFI).
Loan values in the third quarter of 2025 rose 15.7% to €776 million, while volumes increased 17.6% to 73,626, marking the highest quarterly figures since BPFI began tracking the data in 2020. This follows a previous record of €754 million in total drawdowns in the second quarter.
Car loans led the growth in the quarter, with 20,954 loans issued, a 22.7% increase year on year. The total value of car loans also rose by more than 16% to €267 million.
Green personal loans saw the largest spike in activity. Values jumped 31.5% year on year to €42.1 million, while the number of loans increased 34.5% to 1,788. The average green loan reached €23,567, more than double the overall average personal loan value of €10,537. BPFI Chief Executive Brian Hayes attributed the surge partly to the Home Energy Upgrade Loan Scheme (HEULS), launched in 2024 to help homeowners finance energy-efficient home improvements. Over 750 loans have been issued under the scheme to date, reflecting strong consumer interest.
Home improvement loans also grew, rising 11.5% year on year to €230 million and 12.8% higher than the third quarter of 2024. The average home improvement loan increased slightly to €12,758 from €12,606.
Loans for other purposes, including education, holidays, and special occasions such as weddings, also grew. A total of 34,618 loans were issued, up 18% in volume, with values rising 17.4% to €278 million.
Despite the overall growth, the average value of personal loans declined for the first time since early 2023, falling €172 year on year to €10,537. The average car loan dropped €677 to €12,757, while the average green loan fell €538 to €23,567. Home improvement loans were the only category to see a rise in average value, up €152.
Looking at the broader trend, BPFI reported that in the first nine months of 2025, more than 205,000 personal loans were drawn down, valued at over €2.2 billion—more than double the volume and value seen in the same period of 2021. Medium-term household loans, defined as those over one year and up to five years, reached an outstanding value of nearly €11.9 billion by the end of September, the highest level since June 2012, according to the Central Bank of Ireland.
The BPFI Personal Loan Report, issued quarterly, tracks the volume, value, and purpose of personal loans from member banks, highlighting trends in consumer borrowing and lending across Ireland.
