Dynamic Growth in Consumer Loan Sales in Poland in October 2024

The first are purpose loans characterized by a low amount for which they are granted and for financing a specific purpose such as the purchase of specific goods or services, thus cash is not made available to the customer. In purpose loans, low-value purchases can be made in online shops, on sales platforms, and also loans for the purchase of cars, dental services, or aesthetic medicine, characterized by higher amounts. They are usually granted for short periods and are very well repaid. They therefore have features “resembling” them to installment bank loans.

The average value of the purpose loan granted in October 2024 was 702 zlotys and was 8.5% higher than the average value of such a loan granted a year earlier. The number of purpose loans granted in October increased by +2.7% year on year. In terms of value, the increase was even higher at +11.4% year on year.

The second segment is cash loans, which are paid directly into the customer’s account and can be used for any purpose, including repairing the household budget. A distinct feature of cash loans is their higher loss rate compared to purpose loans. In this segment, there are two categories of cash loans. Cash loans granted for low amounts and short periods – so-called “payday loans”, and for high amounts and often for several years. The latter type of loans is similar to bank cash loans.

The average value of the cash loan granted in October 2024 was 2,670 zlotys and was 11.1% higher than the average amount granted in October 2023. The October sales value of cash loans (1.394 billion zlotys) was higher by +44.6% year on year. There was also a positive dynamic year on year (+30.2%) in terms of numbers. In October, a total of 522 thousand were granted.