Banks cash in as personal loans skyrocket

Personal loans for cars, boats and travel have jumped 38 percent since November 2008, according to the latest ABS figures.

In the year to November, loans for new cars jumped 8 percent, loans for boats increased by 19 percent, and unsecured loans for blocks of land skyrocketed by 50 percent.

Banks have captured all of the growth, boosting personal lending by 57 percent in the year to November at the expense of non-bank institutions, whose lending dropped 13 percent.

CommSec economist, Savanth Sebastian said the improvement in economic conditions had given consumers more confidence to borrow.

“Job security is giving consumers more confidence to go ahead with planned purchases of big-ticket items like motor vehicles,” he said.

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