The number of people applying for a
personal loan has fallen significantly, new figures have shown.
According to a study carried out by Finance and Leasing Association (FLA), £168 million was issued for the purposes of borrowing during April, down by around 42 per cent.
The figures also indicated that £2.462 billion of new
personal loans were taken out in the 12 months up to April, some 45 per cent less than the previous year.
In the three months leading to April, £601 million was issued in
personal loans, also 35 per cent lower than the same period last year.
Fiona Hoyle, head of consumer finance at the FLA, said consumer spending was "vital" to the economy, but acknowledged that borrowers are still being cautious in the wake of the downturn.
"Today's figures show how fragile the consumer lending markets remain," she commented.
"The government should help reduce uncertainty in the markets by clarifying its plans for consumer credit regulation."
The Citizens Advice Bureau recently warned that the recession had led to a dramatic increase in the number of companies offering fake
personal loans.
