Personal loans on the rise
(15 January 2010 – Australia) Lending figures have recovered from the lowest point reached during the financial crisis, increasing overall by 38 percent since November 2008.
The short fixed-term borrowing for travel, boats and cars is pleasing banks, with their personal lending increasing by 57 percent.
However, the news is not so good for non-bank institutions, who’s lending dropped by 13 percent.
Overall the largest jump was for unsecured loans for blocks of land, which increased by 50 percent, with boats following closely behind at an increase of 19 percent.
Loans for new cars rose by 8 percent and the figures indicate a movement away from borrowing to purchase used vehicles, dropping to a 22 year low.
CommSec economist, Savanth Sebastian said that the improvement in economic conditions and the sustained improvement in consumer confidence is starting to resonate.
Mr Sebastian also said that more job security is giving consumers more confidence to go ahead with planned purchases of larger ticket items.
The figures, published a day after ABS data showing a 6 percent decrease in home loans, also showed that commercial lending is still on the overall decrease down 8 percent over the year.
A 3 percent decrease was recorded for mortgages for housing and lending for renovations dropped by 2 percent.
Mr Sebastian highlighted that it is ironic that over the last year housing finance supported lending finance, which has now contracted largely due to consecutive rate hikes and the end of the Home Owners Boost.
However, the news is not so good for non-bank institutions, who’s lending dropped by 13 percent.
Overall the largest jump was for unsecured loans for blocks of land, which increased by 50 percent, with boats following closely behind at an increase of 19 percent.
Loans for new cars rose by 8 percent and the figures indicate a movement away from borrowing to purchase used vehicles, dropping to a 22 year low.
CommSec economist, Savanth Sebastian said that the improvement in economic conditions and the sustained improvement in consumer confidence is starting to resonate.
Mr Sebastian also said that more job security is giving consumers more confidence to go ahead with planned purchases of larger ticket items.
The figures, published a day after ABS data showing a 6 percent decrease in home loans, also showed that commercial lending is still on the overall decrease down 8 percent over the year.
A 3 percent decrease was recorded for mortgages for housing and lending for renovations dropped by 2 percent.
Mr Sebastian highlighted that it is ironic that over the last year housing finance supported lending finance, which has now contracted largely due to consecutive rate hikes and the end of the Home Owners Boost.
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