Demand for personal loans increases, figures show

The demand for personal loans increased across the country in September, new figures released by the Australian Bureau of Statistics (ABS) have indicated.

Total finance commitments worth $7.43 billion were made during the month, which was up from $7.24 billion in August, the Australian Associated Press reports.

According to the ABS, total uptake of commercial loans grew by 6.9 per cent in seasonally adjusted terms.

People are clearly feeling increasingly confident about their financial situation if they are prepared to take out a low-interest loan and there is every chance that recent interest rate cuts will heighten demand even further.

The new figures are a marked improvement on August, when the uptake of personal loans was down by 3.3 per cent when compared with July.

It will be interesting to see whether the Reserve Bank of Australia's decision to slash the national cash rate by 25 points in October has had any impact on the loan markets.

Have a question about personal loans? Ask the money gurus at Mozo Answers.ADNFCR-1761-ID-801488405-ADNFCR