In April 2025, Compared to April 2024, Banks and Credit Unions Granted More Cash and Mortgage Loans, but Fewer Installment Loans and Credit Cards.
In April 2025, banks and credit unions (SKOK-i) issued a higher number of two types of loans compared to April 2024: cash loans increased by 21.6%, and mortgage loans by 11.6%. Conversely, the number of installment loans decreased by 26.6%, and credit card loans by 5.5%. In terms of value, cash loans rose by 25.1%, mortgage loans by 17.7%, and credit card loans slightly increased by 0.9%. Installment loans recorded a negative value dynamic, declining by 8.8%.
From January to April 2025 compared to the same period in 2024, only cash loans increased (+25.1%). The other three loan products saw declines: installment loans fell by 28.6%, mortgage loans by 17.3%, and credit card loans by 6.2%. The higher credit portfolio value was driven by cash loans (+35.6%) and increased credit card limits (+3.8%). Mortgage loans (-14.9%) and installment loans (-11.5%) saw decreases.
Sharp Slowdown in Installment Loans
In April 2025, the number of installment loans granted was 26.6% lower than in April 2024, with their total value also dropping by 8.8% year-on-year.
“Analyzing the latest April data on installment loans, we observe a continuation of the downward trend seen in previous months, both in the number and value of loans. This is largely due to a reduction in low-value transactions, mainly from the conversion of unpaid deferred payment obligations (Buy Now, Pay Later – BNPL) transferred via assignments from the non-bank sector to banks. Currently, this process has limited scale. The value decline is less severe due to high-value installment loans financing more expensive goods and services. A recovery in the installment loan market could be supported by an increase in retail sales, but for this to happen, political and economic uncertainty must decrease, encouraging greater consumer spending among Poles,” says Dr. Waldemar Rogowski, Chief Analyst at BIK Group.
The average amount of an installment loan granted in April 2025 was PLN 2,275, marking a 24.3% increase compared to April 2024.
Boom Continues in Cash Loans Segment
In April, cash loan activity continued to grow both in number and value. The year-on-year increase was 21.6% in number and 25.1% in value.
“Customers are taking out cash loans for increasingly higher amounts. The main driver of sales growth in this segment, similar to last year, is high-value loans exceeding PLN 50,000. This is mainly due to loan consolidation, where clients combine multiple financial obligations into a single loan, often within the same bank or by transferring their debt to a new bank. Consolidations are often accompanied by higher loan amounts due to extended repayment periods or lower interest rates on the new loan, which increases borrowing capacity and creates room for additional financing. The first four months of this year have been very successful for cash loans, especially regarding the value of loans granted – PLN 38.26 billion,” summarizes Prof. Rogowski.
The average cash loan amount granted in April this year was PLN 26,864, a 2.9% increase from April 2024.
Mortgage Loans – Signs of Revival in Positive Growth
In April 2025, banks issued 11.6% more mortgage loans compared to April 2024 and 3.7% more than in March 2025. The value growth was even stronger – up 17.7% year-on-year and 5.7% month-on-month.
“Mortgage loan sales in April looked very strong. Despite the lack of any support programs and the still relatively high interest rates on newly granted mortgage loans (even after a rate cut), the credit portfolio value in April was PLN 8.13 billion. This is a value not seen since 2021, excluding the period from October 2023 to March 2024, when the Safe Loan 2% program was in effect.
Another record was set for the average mortgage loan amount granted – PLN 436,870. The value increase is driven both by growing interest in mortgage loans, possibly related to expectations of further interest rate cuts (6-month WIBOR now at 5%), and favorable conditions for buyers on both the primary and secondary housing markets. Additionally, the positive value dynamics result from comparing April 2025 sales to April 2024, when support program loans, applied for in 2023, were already fading out (PLN 0.311 billion),” explains Prof. Rogowski.
The average mortgage loan amount granted in April was PLN 436,870, 5.5% higher than a year earlier.
Good Quality of Bank Loan Repayments
All four credit quality indexes for bank loans improved in April year-on-year and month-on-month.
“The BIK Quality Indexes for all four loan products remain at low, safe levels. It is also positive that they show systematic improvement both annually and monthly. Continuous monitoring of these Quality Index values is necessary to identify early signals of potential credit portfolio deterioration. Currently, no such threat is visible on the horizon. Quality should continue to improve if interest rates are lowered further. At present, the bigger risk for banks is not traditional credit risk but legal risk related to both mortgage and consumer loans,” explains the chief analyst of the BIK Group.
