Secured loans `down 76% on last year`

15 June 2009

New figures have shown a significant fall in lending to consumers over the past year, as the credit crunch has continued to restrict the availability of loans.

The Finance and Leasing Association (FLA) said that in March, secured loans (from its members) were down by 76%, in terms of overall value, compared with the same month in 2008. Meanwhile, unsecured loans were down by 37% in the same period, while credit card lending fell by 3%.

However, in-store credit was up by 24% on the year.

Commenting on the research, Geraldine Kilkelly at the FLA said: "Overall, consumer finance is still being hit by the downturn. [...] Many people are choosing to improve their homes and replace furnishings rather than move house. Retailers and lenders have been offering attractive interest-free credit and deferred payment deals on store instalment credit."

A loans expert for Think Money said: "Loans are in shorter supply than they have been in recent years, but would-be borrowers may be able to improve their chances of finding the right loan deal by speaking to an expert loans adviser."

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Tags: secured loans, unsecured loans, Finance and Leasing Association, in store credit, store credit, credit cards, loan, loans, credit

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