Personal loans figures rise 38 per cent in last 14 months
Thursday January 14, 2010
Personal loans are now back in vogue for many Australians as a popular means of financing as the national, and many individual, economies recover from the Global Financial Crisis. According to the latest lending figures it would appear that many Australians have begun to embrace personal loans as a primary means of financing for larger purchases with a substantial 38 per cent increase in fixed-term personal loans since November 2008, when borrowing loans were at their lowest. This is especially evident as credit cards only recorded a 6 per cent growth.
Reasons for loans:
- Unsecured loans for land purchases rose 50 per cent
- loans for boats were up 19 per cent
- loans for new cars climbed 8 per cent. Within these results is was also noted that borrowing to buy any second-hand vehicles had declined to their lowest levels in the 22 years these figures have been recorded
From a financial stand point it seems that many people still trust the banks when it comes to their personal financing despite the backlash that was felt during the financial crisis as the latest figures also showed that the banks have benefitted entirely from this rise in personal loans.
Lenders of personal loans:
- Banks personal lending levels jumped 57 per cent in the year to November
- non-bank institutions personal lending levels dropped by 13 per cent for same time period
The increases across the board are being attributed to the strengthening of economic conditions both personally and for the overall economy with job security also making many people far more comfortable with the idea of repayments.
The latest lending figures include:
- fixed-term personal loans up 38 per cent since November 2008
- majority of loans being for large personal items such as new cars
- credit card growth at 6 per cent
- commercial lending down 8 per cent over the year
- mortgages down 3 per cent in November
- lending for renovations were also down 2 per cent
When it comes to large scale loans of mortgages there were declines recorded with mortgage lending down 3 per cent while lending for home renovations were also down 2 per cent, with these declines being recorded after the Reserve Bank began to raise interest rates.
The Australian Bureau of Statistics latest figures also show that commercial lending figures is down 8 per cent over the year despite a brief rise recorded in November.
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