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Personal lending activity in Ireland continued its strong upward trend last year, with new figures showing record levels of borrowing across car finance, home improvements and environmentally focused loans.

Data from the Banking & Payments Federation Ireland indicates that personal loan drawdowns rose sharply in the third quarter, with total values increasing by 15.7 percent to €776 million. Loan volumes also climbed by 17.6 percent to 73,626, marking the highest quarterly figures recorded since tracking began in 2020. This followed a previous high of €754 million in total drawdowns during the second quarter.

Car finance remained a major contributor to growth. The number of car loans increased by 22.7 percent year on year to 20,954, while the total value of these loans rose by more than 16 percent to €267 million. This reflects sustained demand in the motor market despite wider cost pressures on households.

The most pronounced growth was seen in green personal loans. Lending in this category increased by 31.5 percent in value to €42.1 million, while volumes rose by 34.5 percent to 1,788 loans. The average green loan stood at €23,567 in the quarter, more than double the overall average personal loan value of €10,537.

Home improvement loans also recorded solid gains, rising by 11.5 percent year on year to €230 million. The average loan size in this category edged higher to €12,758, compared with €12,606 in the same period a year earlier.

Borrowing for other purposes such as education, holidays and special occasions continued to grow. Between July and September, 34,618 loans were drawn down for these uses, an increase of 18 percent in volume, with total values up 17.4 percent to €278 million.

Commenting on the figures, Brian Hayes said the surge in green lending represented the highest levels recorded since this category began being tracked in 2022. He noted that the Home Energy Upgrade Loan Scheme, introduced in 2024, has played a role in improving access to funding for residential energy upgrades. More than 750 loans have been drawn down under the scheme to date, pointing to strong consumer engagement.

Despite overall growth, 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 eased, dropping by €677 over the same period to €12,757. Green loan averages declined by €538 to €23,567, while home improvement loans moved against the trend, increasing by €152.

Looking at the broader picture, BPFI figures show that in the first nine months of 2025, more than 205,000 personal loans were issued with a combined value exceeding €2.2 billion. This represents more than double the volume and value recorded during the same period in 2021. Separate data from the Central Bank of Ireland shows that outstanding medium-term household loans reached almost €11.9 billion by the end of September 2025, the highest level since mid-2012.

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