Why are personal loans popular again?
Personal loan sales had been in long term decline but new loan applications have turned around in 2015. Personal loan applications rose 12 per cent in the three months to 30 September 2015.
Angus Luffman from credit reference agency Veda said Aussies are using personal loans to buy household goods like furniture and electrical items.
Luffman said new entrants to the personal loan market, including RateSetter, SocietyOne and DirectMoney, are also having a positive impact on personal loan application numbers. The new lenders are prompting consumers to shop around.
Source: Banking Day