Investors request $6.9 billion in TALF loans: NY Fed

A group of students studies on the campus of San Francisco State University in San Francisco, California June 30, 2009.

NEW YORK (Reuters) - Investors requested $6.9 billion of loans under the Federal Reserve's flagship consumer and small business loan facility in August, the New York Fed said, covering all of the securities offered by issuers in the asset-backed market.

Investor loan requests were up from July's $5.4 billion.

The Term Asset-Backed Securities Loan Facility, or TALF, is a crucial part of the Fed's efforts to lower borrowing costs for consumers on everything from student loans to new cars. Rates skyrocketed after credit markets froze last year.

The heaviest demand was for asset-backed securities that are supported by credit cards and student loans. Investor requests came in at $2.57 billion and $2.45 billion respectively.

Investors also requested $1.03 billion for floorplan ABS securities, $555 million of auto loan securities $107 million for securities backed by servicing advances and $149 million for securities backed by small business loans, the NY Fed said.