Demand for consumer credit rose by 4.1 per cent last year according to Veda, a market research company, in its fourth quarter 2012 Quarterly Consumer Credit Demand Index.
Based on the index measurement personal loan applications increased 10 per cent year on year, however, credit card applications declined by 2 per cent with mortgage lending remaining flat.
According to the report demand for personal loans was strong across the country with many states recording double-digit growth for the year ending December while credit card applications were weak in every state except Western Australia.
Veda general manager, Angus Luffman, said the figures revealed that overall consumer demand for credit had grown steadily for the first time in over a year. Breaking down the numbers, Luffman said that personal loans had shown solid growth and he concluded that this was due in large part to finance the purchase of cars citing the sharp increase in motor vehicle purchases recorded last year.