Banks and other financial institutions are reporting strong demand for loans to buy Telecom shares. But bankers were reluctant to disclose its extent "for competitive reasons".

One banker maintained that the average loan across all institutions was £30,000 (#38,119) to £40,000.

There have been a few very large loans - multiples of £100,000 - he added, explaining that this would happen where one member of a wealthy family was applying for shares on behalf of him/herself, a spouse and a number of children.

As the receiving bank, AIB is precluded from releasing any information which would indicate interest levels, a spokesman said. At branch level, however, officials said demand was "strong".

TSB Bank was "snowed under" with applications for funds, according to a spokesman, who said demand was "exceptionally strong".

The size of loans sought varied between £10,000 and £100,000, he said, adding that many customers appeared to be paying for their shares by cheque rather than direct debit. Many customers were withdrawing from savings accounts to fund the purchase or using a combination of savings and loans, he said.

At Irish Life and Permanent a spokesman said the average size of loans sought was about £6,000, with a very specific package on offer to customers. IL&P expects to lend less than £10 million for Telecom shares spread over a wide range of customers, though he added that business had doubled in recent days.

An IL&P spokeswoman said demand for loans was very strong with "the queue for loans as long as Leeson Street".

Bank of Ireland said demand was very strong and increasing while Ulster Bank had no loan figures available at this stage with loans being granted within each branch's discretion level.

EBS is not making loans for share purchase but customers have sought loans and at all of its branches there has been a "reasonable level" of withdrawals from savings to buy shares. Customers seeking to break fixed-term savings contracts to invest in Telecom shares will be facilitated subject to a number of conditions: they must give 24 hours' notice, provide evidence that they are applying for the shares and the cheque or direct debit must be made out in favour of Telecom.

But several potential investors contacted The Irish Times yesterday complaining that their banks had refused to allow them to break fixed-term savings contracts but had instead offered them loans to buy shares.

No figures are being published on the number of people applying for shares until the application process is completed. A final figure is expected to be available at the end of the week.

Some 1.2 million registered to buy shares but not all of these are expected to follow through and lodge formal applications.

So far, applications are believed to have been reasonably strong but experience from similar flotations in Britain indicates that more than three-quarters of those applying are likely to do so in the last three days.