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Broadly defined, the personal loans market in Australia includes all loans used for purposes other than housing. However, personal loans can be used to finance the purchase of goods and services such as home renovations or other household goods. As at 30 June 2005, the total outstanding balance on non-housing or personal loans (including credit card balances) originated by banks and credit card providers in Australia was over $110 billion.
Between FY2001 and FY2005, this amount grew at a compound annual growth rate of 15.1%, whilst personal loans grew at a compound annual growth rate of 14.2% and the credit card market grew at a compound annual growth rate of 17.5% (see Figure 1).
Figure 1: Australian Personal Loans1 and Credit Card Balances Outstanding ($ billion)
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