- Home
- Personal Loans
- News
- Personal loans in high demand
Personal loans in high demand
An increasing number of Australians are applying for personal loans and turning away from credit cards and mortgages, according to new figures from Equifax.
The latest Quarterly Consumer Credit Demand Index from consumer credit bureau, Equifax, provides an early indication of movements in consumer spending and retail sales.
Key findings of the latest Index included a rise in demand for consumer credit of 10.3% in the June 2017 quarter, reportedly driven primarily by an increase in personal loan applications by 18.4% in the June 2017 quarter.
In the same period, credit card applications increased by just 2.3%, and mortgage applications fell by 0.9%.
Looking more closely at the personal loan figures, Equifax found that applications for car loans fell by 1.5%, while non-auto personal loan applications increased by 26.5%.
Also, over the past three years, applications to traditional lenders (financial institutions such as credit unions, local and international banks) remained stable, while applications to lenders outside this group (including recently established lenders with niche offerings, such as alternate payment options in an online, point-of-sale environment) increased 2.5 times.
According to Equifax senior GM consumer products, Angus Luffman, these figures indicate that Australian attitudes to credit are changing:
“The average value amount a consumer applies for on a credit card has doubled in the past three years. Yet, in the same period, the total credit card balances accruing interest have declined.”
“This suggests consumers are using credit cards more frequently for every day purchases, while also being careful not to add to the debt load. The lift in personal loans indicates consumers are turning to this line of credit as a means to support household and discretionary expenditure.”
“Given the current subdued growth in household incomes, and below-neutral consumer sentiment, it is understandable that Australians may be becoming more circumspect in their use of consumer credit products.”
Increase in consumer credit applications (quarterly year on year %)
| Sector | Mar 16 | Jun 16 | Sep 16 | Dec 16 | Mar 17 | Jun 17 |
|---|---|---|---|---|---|---|
| Credit Demand Index | 4.4% | 1.8% | 2.5% | 7.7% | 5% | 10.3% |
| Credit Cards | 1.8% | -0.7% | -0.3% | 2.9% | -3.6% | 2.3% |
| Personal Loans | 7.2% | 4.5% | 5.3% | 12.3% | 14% | 18.4% |
| Personal Loans (Auto) | 0.7% | 8.7% | 8% | 4.4% | -1.9% | -1.5% |
| Personal Loans (Non Auto) | 9.8% | 2.9% | 4.2% | 15.1% | 19.9% | 26.5% |
| Mortgage Demand | -0.4% | -3.2% | 0.9% | 6.7% | 4.5% | -0.9% |
Source: Equifax
Disclaimer
This article is over two years old, last updated on July 19, 2017. While RateCity makes best efforts to update every important article regularly, the information in this piece may not be as relevant as it once was. Alternatively, please consider checking recent personal loans articles.
Compare personal loans
6.57%
up to 8.48%
7.19%
up to 13.58%
$920
Australian Credit Licence 488228
Fees & charges apply
- 2024 Award Winner
- 1 to 7 years
- Unsecured
- Fixed Rate
- No ongoing fees
5.76%
up to 24.03%
6.55%
up to 24.99%
$909
Australian Credit Licence 474726
Fees & charges apply
- 2024 Award Winner
- 3 to 5 years
- Unsecured
- Fixed Rate
- No ongoing fees
7.24%
up to 9.39%
7.24%
up to 10.31%
$930
Australian Credit Licence 286596
Fees & charges apply
- 3 to 7 years
- Unsecured
- Fixed Rate
- No ongoing fees
6.75%
up to 26.95%
6.75%
up to 26.95%
$923
Australian Credit Licence 411227
Fees & charges apply
- 2024 Award Winner
- Special
- 1 to 7 years
- Unsecured
- Fixed Rate
7.49%
up to 13.95%
8.33%
up to 17.58%
$933
Australian Credit Licence 393845
Fees & charges apply
- Via broker
- 1 to 7 years
- Secured
- Fixed Rate
8.99%
up to 10.99%
10.99%
up to 13%
$954
Australian Credit Licence 517589
Fees & charges apply
- 1 to 3 years
- Unsecured
- Fixed Rate
- No ongoing fees
6.57%
up to 8.48%
7.19%
up to 13.58%
$920
Australian Credit Licence 488228
Fees & charges apply
- 1 to 7 years
- Secured
- Fixed Rate
- No ongoing fees
6.99%
6.99%
$926
Australian Credit Licence 517589
Fees & charges apply
- 2024 Award Winner
- 1 to 7 years
- Unsecured
- Fixed Rate
- No ongoing fees
Product database updated 19 Apr, 2024
Fact Checked
Share this page
Get updates on the latest financial news and products
By continuing, you agree to the RateCity Privacy Policy, Terms of Use and Disclaimer.
Promoted personal loans
Low Rate Personal Loan Unsecured (Excellent Credit)
Real Time Rating™
- 2024 Award Winner
- 1 to 7 years
- Unsecured
- Fixed Rate
Interest rate p.a.
6.57%
up to 8.48%
Comparison rate* p.a.
7.19%
up to 13.58%
Australian Credit Licence 488228
Fees & charges apply
Unsecured Personal Loan (Excellent Credit) (Amount > $5000)
Real Time Rating™
- 2024 Award Winner
- 3 to 5 years
- Unsecured
- Fixed Rate
Interest rate p.a.
5.76%
up to 24.03%
Comparison rate* p.a.
6.55%
up to 24.99%
Australian Credit Licence 474726
Fees & charges apply
Unsecured Personal Loan (Excellent Credit)
Real Time Rating™
- 3 to 7 years
- Unsecured
- Fixed Rate
- No ongoing fees
Interest rate p.a.
7.24%
up to 9.39%
Comparison rate* p.a.
7.24%
up to 10.31%
Australian Credit Licence 286596
Fees & charges apply
No Fee Personal Loan
Real Time Rating™
- 2024 Award Winner
- Special
- 1 to 7 years
- Unsecured
Interest rate p.a.
6.75%
up to 26.95%
Comparison rate* p.a.
6.75%
up to 26.95%
Australian Credit Licence 411227
Fees & charges apply
Product data updated on 19 Apr 2024