Value of Australian Personal Loans Tops $7 Billion In August

Post by NeilMc on October 13, 2009 · Under Australian Economy, Business News, banking, home loans, interest rates, loans, mortgages, personal loans · Comment

Demand for personal loans not including mortgages surpassed the $7 billion mark during the month of August for the first time in 18 months, underlining a further increase in consumer confidence over the Australian economy.

The Australian Bureau of Statistics released the August data on Monday, showing that personal loans, which include fixed and revolving credit facilities increased by 4.1 per cent in August compared with July and stood at $7.18 billion.

There was a parallel increase in commercial lending as well, which rose by 5.6 per cent to $28.51 billion in August. Commercial lending however remains at about half the peak level of $50.18 billion that was set in January 2008.

Despite the increase in personal and commercial lending, lease finance declined by 9.4 per cent to $398 million whilst home loans for owner occupied accommodation fell by 1.7 per cent to $16.54 billion in August.

The data release was somewhat overshadowed by last week’s move by the Reserve Bank of Australia, which hiked official interest rates by 25 basis points to 3.25 per cent, a move that was replicated by retail lenders.

Wednesday’s Westpac-Melbourne Institute consumer sentiment survey will gauge the response to the rate increase, the first in 19 months.

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