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

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:

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!