Although usually households are the net providers of loanable funds, they also are in the market as borrowers. Moreover as we all know demand curves slope down so as interest rates increase, the quantity demanded goes down. Note this does not change the demand curve, only the position in the demand curve. Like Household demand, this is usually positively correlated with the economy. That means it is not largely a function of prevailing interest rates.
Demand fluctuates with the real rate of interest.
This is becoming more of a factor as the world becomes increasingly global. Supply of Loanable Funds Households are the largest suppliers of Loanable Funds, but by no means the only source. Businesses and Government also can be temporary suppliers. It should be no surprise that as interest rates rise suppliers are more willing to supply funds. This is partially the result of a higher propensity to save in these countries.