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ISCOVER
Staff Reporter
The Reserve Bank of Australia's decision to cut the official cash rate has helped demand for business and commercial loans soar.
An examination of major mortgage industry web traffic using online measurement company Experian Hitwise showed a 133 per cent rise in searches for variations on 'business loan' since November 1, 2011.
In addition, Experian Hitwise noted a 78 per cent spike in searches for variations on 'personal loan' over the past four weeks.
Loan Market Group's chief operating officer Dean Rushton supported the findings and said the brokerage's own website had also seen enquiries for commercial loans increase over the past month.
"The first interest rate cut by the RBA in more than two and a half years has obviously had a positive impact," he said.
"People are becoming more confident about taking on credit and they are looking to invest in their businesses.
"The prospect of interest rates rising has gone and there's a strong possibility of the RBA further lowering the cash rate at its final board meeting of the year next month.
"Interest rates for commercial loans have also become more appealing with competition between the various lenders resulting in more attractive loan products being offered."
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