New figures from Banking & Payments Federation Ireland show that personal loan activity surged by 18.6% last year to hit a record €2.9 billion.
The latest BPFI figures reveal that loan volumes rose by 19% in 2025 to 272,980 compared to 2024.
Car loans up for the year increased by over 19%, while green loans were up almost 26% year on year.
Today's figures show that a total of 67,626 personal loan drawdowns were recorded in the fourth quarter of 2025, valued at €693m. This marked an increase of 19.9% in volume and 18% in value year on year.
The average personal loan value decreased by €172 year on year to €10,253.
BPFI said the number of car or auto finance loans rose by 20.3% year on year to 18,340 in the fourth quarter of last year, while the value of loans increased by 17.5% to €229m.
The average car loan in the last three months of 2025 was €12,463, down slightly from €12,757 a year earlier.
In total there were 78,977 car loans valued at over €1.015 billion last year, 19.3% higher in volume and 18.6% higher in value than in 2024.
Meanwhile, BPFI reported 17,584 home improvement loans in the fourth quarter of 2025, up by 17% year on year. These loans were valued at €213m, 17% higher than the same time in 2024.
The average home improvement loan value was €12,085, little changed from 2024.
In annual terms, home improvement loan volumes reached 68,750, an increase of 14% compared to 2024, while values rose by 15.2% to €868m.
A total of 31,702 loans for other purposes - includuing education, holidays and special occasions such as weddings - were drawn down in the fourth quarter of last year, an annual rise of 21.5% in volumes, with values rising by 19.3% to €252m.
The average loan value for other loans was €7,957, down from €8,106 in the fourth quarter of 2024.
In total during 2025, there were 125,523 other purpose loans valued at €1.022 billion, an increase of 21.7% in volume and 21.8% in value year on year.
Meanwhile, the value of green personal loans rose by 19.4% year on year to €36.1m in Q4 2025, while the number of green loans rose by 17.8% to 1,562.
BPFI noted that the average green loan was relatively high at €23,105 in the fourth quarter, more than twice the average of €10,425 for all loans in the same quarter.
In annual terms, green loan volumes jumped by 25.8% to 6,516 loans, values rose by 27.7% to €152.6m.
Brian Hayes, the chief executive of BPFI, said that record drawdowns of personal loans in 2025 points to strong consumer confidence with many households continuing to seek finance to invest in major life purchases.
"Annual figures show that there were 272,980 personal loan drawdowns valued at more than €2.9 billion, up 19% in volume compared to 2024, with values 18.6% higher," Mr Hayes said.
"These were more than double both the volume and value levels from 2020, when the data series began. Notably, the increase in 2025 were not confined to one segment, with activity rising across all categories," he added.
He noted that the fastest increase in activity in 2025 was seen in green personal loans (albeit from a lower base) which jumped by 25.8% in volume year-on-year to 6,516 loans, and by 27.7% in value, reaching €152.6m.
"We know that energy costs have increased significantly this year. With the renewed focus on energy saving measures and renewable energy and the latest SEAI data showing a 186% increase in individual home energy upgrades in Q1 2026, it will be interesting to observe if personal loan trends in the coming months reflects any further shift in consumer priorities," he added.
