Uptake of personal loans increases

Aussies have been wary of taking out personal loans in recent months because of the uncertainty surrounding interest rates.

The Reserve Bank of Australia (RBA) had been reluctant to lower the national cash rate until the start of May.

Although the national rate now stands at 3.75 per cent – 50 points lower than last month – many banks have not handed this cut on to their customers in its entirety.

It seems that many of the nation's major lenders have detached themselves from the RBA and are instead setting their own rates.

However, new figures released by the Australian Bureau of Statistics have indicated that – despite the uncertainty – Aussies have been taking out personal loans in greater numbers this year.

The number of people securing finance agreements grew by 1.1 per cent in seasonally adjusted terms in March 2012 when compared with the previous month. Revolving credit commitments were up by 1.2 per cent, while fixed arrangements were one per cent higher.

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