In the last couple of years, the world economies experienced quite a disturbance due to the rise of the COVID-19 pandemic. In Australia, everyone was hit with rising consumer prices, the global supply chain crisis, and extended lockdowns. Now that we’re slowly going back to some semblance of normality, Australians seem to be turning to personal loans to help them get back up their feet. In this article, let’s look at the noticeable growth in the loan market in Australia and why many people are taking out more loans than they’ve ever done in a long time.
Personal Loan Growth in Australia
It’s no secret that personal loans are on the rise in Australia. In fact, over the last few years, the number of personal loans taken out by Australians has increased significantly.
There are a number of reasons why personal loan growth is on the rise in Australia, including:
1. Rising Cost of Living
Many Australians are finding it difficult to keep up with the rising costs. As a result, more and more Australians are turning to personal loans to help cover the costs.
2. Increased Availability of Personal Loans
There are now a number of lenders offering personal loans, and the application process has become much easier. This has made it easier for Australians to access personal loans when they need them.
3. Return to Economic Stability
After the rise and very slow decline of the COVIDS-19 pandemic, the Australian economy is slowly returning to stability, which has made it easier for Australians to access personal loans. This is good news for Australians who need personal loans to cover the costs of unexpected expenses. The unemployment rate is also normalizing, and incomes are rising, which means that more Australians are able to make their loan repayments on time.
4. Increased Competition
With the personal loan market becoming increasingly competitive, lenders are offering more attractive interest rates and terms to lure in new customers.
5. Rising Debt Levels
Unfortunately, the growth of personal loans in Australia has also been accompanied by a rise in debt levels. This is something that all Australians need to be aware of, as it can lead to financial problems down the road.
Who is taking out personal loans?
Personal loans are becoming increasingly popular among Australians. According to a recent report from the Reserve Bank of Australia (RBA), the number of personal loans being taken out has grown significantly in recent years.
There are a number of reasons why personal loans are becoming more popular. Firstly, personal loans can be used for a variety of purposes, including consolidating debt, making home improvements, or paying for unexpected expenses. Secondly, personal loans usually have lower interest rates than credit cards, so they can be a more cost-effective way to borrow money.
It’s also worth noting that the application process for personal loans has become easier in recent years, with many lenders now offering online applications and instant approval. This has made personal loans more accessible for a wider range of borrowers.
If you’re thinking of taking out a personal loan, it’s important to compare a range of lenders to find the best deal for you. Personal loans can be a great way to finance a variety of purchases or expenses, but it’s important to compare your options before applying for a loan. Make sure you compare interest rates, fees, and features such as redraw facilities and repayment holidays.
Before applying for a personal loan, make sure your work with a reputable financial institution with an untarnished track record. This is where Rpm Finance comes into play. As one of the leading asset finance brokers in Australia, we provide hassle-free solutions to our clients. Our goal is to help you reach your financial goals by finding the most suitable loan products for your needs. Contact us today to schedule a consultation.