Personal Loans Report: How Ireland Borrowed Last Year?

As much as you enjoy reading our blogs, we enjoy breaking down complex financial topics to make them easier to understand. That’s exactly why, in today’s Money Matters blog, we’re turning our attention to the Banking and Payments Federation Ireland’s Q4 Personal Loans Report 2024. It’s a deep dive into how people in Ireland borrowed and spent throughout the year.

The report pulled together the data from major lenders like AIB, Bank of Ireland, Revolut and more to create a comprehensive report around personal loan lending data and we have to say, they paint quite the picture.

Irish households took out more than 229,000 personal loans in 2024, totalling nearly €2.5 billion.

That isn’t just a high number, it’s the highest since this type of reporting began in 2020.

So, what exactly were people borrowing for? Let’s unpack the trends and see what the data reveals about Ireland’s borrowing habits in Q4 and beyond.

BPFI Personal Loans Report: Q4 Closed the Year with a Bang

We will keep the Q4 2024 in focus as the report is based on that but include backdated data (Linked in the same BPFI article) for the same report series just to add context.

If we zoom in on Q4 2024, then it has plenty to say on its own as the last three months often set the tone for how confident people feel heading into a new year.

Q4 2024 overview: Irish borrowers drew down 56,381 personal loans in Q4 alone, totalling €588 million. That’s a 28% rise in volume and a 33% boost in value compared to the same quarter in 2023. Even the average loan size nudged upwards to €10,425, signalling that people weren’t just borrowing more often, they were borrowing with intent.

Car Loans

If there’s one thing Irish people clearly put their money into in Q4 2024, it’s cars. More than 15,000 car loans were approved, adding up to €195 million. With the average loan value of €12,757, it’s clear many chose comfort for the next time they hit the road.

To put this into perspective, separate data from beepbeep.ie shows more than 6,000 vehicle registrations in Q4 alone. That lines up well with the loan numbers, confirming that a substantial part of personal borrowing went straight to putting new cars on Irish roads.

Period	Category	October	November	December	Total
Oct – Nov 24	Passenger car	2397	1112	423	3932
Oct – Nov 24	Light commercial	1196	532	94	1822
Oct – Nov 24	Heavy commercial	142	105	18	265

Home improvement

Irish borrowers also didn’t hesitate to invest in their homes during the last quarter of 2024. They approved 15,033 loans for home improvements, totalling €182 million. With an average loan size of €12,086, these loans covered serious upgrades like insulation, energy-efficient windows, or solar panels.

This increase shows that many prioritized comfort and energy savings as the year ended, preparing their homes for the future.

Green Loans

Green loans remain a smaller part of the personal loan market, but their growth in Q4 2024 stood out. Irish borrowers took out 1,326 green loans worth €30.2 million, marking a nearly 50% rise in volume and over 55% growth in value compared to Q4 2023.

What stands out is the average loan size of €23,000; more than twice the size of the average car or home improvement loan. According to earlier data, the average green loan reached €24,105 in Q3 2024. Sustainability doesn’t come cheap, but Irish borrowers clearly understand its importance. The numbers may vary, but the upward trend is clear.

Member First Credit Union offer MFCU Green Loans at great interest rates

Other Purposes Lead the Way in Personal Loans Report

The largest portion of borrowing falls under “other purposes.” In Q4 alone, people took out 26,097 loans to cover life’s big moments and essentials: education fees, holidays, medical bills, weddings, and more. These loans totalled €212 million during the three months.

Despite rising living costs, Irish people didn’t hold back from investing in what matters most, whether it’s education, celebrating milestones, or enjoying life. This shows confidence in their finances and a plan to repay these loans.

So, what does all this borrowing tell us about Irish households in 2024? People borrowed deliberately, not recklessly. These loans weren’t quick fixes; they were investments. Whether upgrading a car, improving a home, or supporting a green future, borrowers acted with purpose.

The strong rise in both loan numbers and amounts shows confidence is returning. People don’t borrow €2.5 billion unless they believe they can repay it. That financial security is encouraging.

Credit Union

This report focuses mainly on the banking sector, so it doesn’t fully reflect credit unions like ours. As one of Ireland’s largest credit unions, based in Dublin, we pride ourselves on being a trusted, community-focused alternative. We offer a full range of personal loans, and we reinvest all earnings back into local clubs and communities.

Next time you choose a loan, consider your local credit union before deciding.