Personal loans borrowing decreases

Fri, 30 Apr 2010

There were fewer applications for personal loans last month according to figures released by the British Bankers Association (BBA). The latest High Street Banking Report from the BBA found that new lending by way of personal loans reduced from the value in February, while repayments rose slightly during March.

The report also showed that the amount of credit card transactions recorded had an increase of 1.3 per cent in March, which was attributed to the growth in the volume of retail sales. The BBA report also found that the actual value of transactions fell by 5 per cent, which forced credit card spending down by 4.5 per cent on a year-on-year basis.

David Dooks, who is director of statistics at the BBA, reported that low interest rates were continuing to have an influence on customer behaviour. He said that "People are holding more cash in their everyday accounts, rather than building up savings accounts, and overall unsecured borrowing levels are standing still."

An earlier report by the BBA showed that High Street banks had issued about GBP1.3 billion in new personal loans in February of this year.
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