NEW YORK, June 2 (Reuters) - Investors requested $11.45 billion in loans under the Federal Reserve's flagship consumer and small business loan facility in June, the biggest monthly demand so far and up 8 percent from May, the New York Fed said on Tuesday.

The Term Asset-Backed Securites Loan Facility (TALF) is a crucial part of the Fed's efforts to lower borrowing costs for consumers for everything from student loans to a new car; rates had skyrocketed after credit markets froze last year.

The facility got off to a slow start in March and April, amid initial investor reluctance to get involved in government initiatives, but perked up in May as their comfort level rose.

The heaviest demand was for loans for credit card asset-backed securities, with $6.2 billion requested. (Reporting by Kristina Cooke and Richard Leong; Editing by Jan Paschal)