Personal loan providers have enjoyed several years of strong growth, with new sales rising along with consumption, buoyed by consumer confidence and a low interest rate and favourable economic climate. However, it would appear that 2005 represents something of a turning point, as gross lending on unsecured personal loans falls slightly while the secured loan sector experiences a significant reduction in demand.

The short-term forecast suggests that housing activity will be more subdued going forward, and there will be slower economic growth and reduced spending levels. This report examines how these shifting economic dynamics and other factors including new and amended regulations are impacting on the personal loans market, in terms of its competitive composition and new business levels.

About the market:

Personal loan providers have enjoyed several years of strong growth, with new sales rising along with consumption, buoyed by consumer confidence and a low interest rate and favourable economic climate. However, it would appear that 2005 represents something of a turning point, as gross lending on unsecured personal loans falls slightly while the secured loan sector experiences a significant reduction in demand.

The short-term forecast suggests that housing activity will be more subdued going forward, and there will be slower economic growth and reduced spending levels. This report examines how these shifting economic dynamics and other factors including new and amended regulations are impacting on the personal loans market, in terms of its competitive composition and new business levels.

About Mintel’s research:

The focus of this report is on unsecured personal loans, although the secured lending sector is also covered in order to provide context.

Mintel’s report offers:

a summary of key market and consumer insights (Premier editions only)

an overview of the main factors shaping the market, relating to consumer behaviour and spending patterns, the economy and regulation

an analysis of the market’s size and segmentation

an appraisal of the supply side of the market and the competitive environment

comments on product innovation, distribution and promotion

an overview of general consumer financial activity, including expected debt-related activity (Premier editions only)

an investigation into consumer behaviour and attitudes towards personal loans and other consumer credit products, drawing on independent consumer research

special further analysis (using CHAID, repertoire and cluster models) on the consumer data to enable deeper understanding of specific target groups (Premier editions only)

a round-up of industry views (Premier editions only)

an analysis and forecast of future market development.