More Aussies taking out personal and car loans than before the pandemic

couple applying for personal loan on their laptop

The numbers are in - Aussie personal loan and car loan customers have borrowed more now than before the pandemic began. 

This is according to the Australian Bureau of Statistic’s latest lending indicators data, which tracks the total value of new loan commitments month on month. 

Over the month of May 2021, the total value of new loan commitments for personal fixed term loans came to $1.986 billion, a growth from $1.397 billion in May 2020 (during the pandemic) and $1.599 billion in May 2019 (pre-pandemic). 

The ABS also broke down the data into purchase types, with things like road vehicles, other vehicles and equipment and household and personal goods all jumping over pre-pandemic levels. 

As to be expected however, the total value of travel and holiday loans continues to be well below 2019 figures. While there was a small rise from 2020, these figures are historically closer in line with the numbers of the other vehicle and equipment, and household and personal goods categories, as indicated by 2019. 

Here’s what some of the numbers look like:

Purchase TypeMay 2021 ($b)May 2020 ($b)May 2019 ($b)
Road vehicle1.2960.9161.079
Other vehicle/ equipment0.0610.0440.050
Household and personal goods0.1000.0590.056
Travel and holiday0.0070.0020.041

The numbers reveal that both road vehicles and household and personal goods have seen the largest increase, likely due to things like international and state border closures and lockdowns. 

Currently, the Australian vehicle market has seen an increase in new car sales as well as the skyrocketing used car prices, with many shoppers turning to car loans as a finance option. 

Similarly, as people continue to work and stay at home, more Aussies are turning to personal loans to help fund things like home renovations or upgrades, as well as supplies for a home office. Unlike the vehicle and equipment categories, the ABS found that household and personal goods actually increased in 2020 as well as in 2021.

Are you looking to take out a personal loan this month? Have a peek at these top offers available now or head to our personal loan comparison hub for more!

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Last updated 21 June 2024 Important disclosures and comparison rate warning*
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* WARNING: The Comparison Rate combines the lender's interest rate, fees and charges into a single rate to show the true cost of a personal loan. The comparison rates displayed are calculated based on a loan of $30,000 for a term of 5 years or a loan of $10,000 for a term of 3 years as indicated, based on monthly principal and interest repayments, on a secured basis for secured loans and an unsecured basis for unsecured loans. This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.

^See information about the Mozo Experts Choice Personal Loan Awards

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