The credit market in Poland is generally growing, although unevenly. Data from the Credit Information Bureau (BIK) indicate that the best-performing segment is consumer cash loans. The total amount of credit card limits granted has also increased. According to BIK forecasts, the value of both mortgage loans and cash loans will rise throughout the year, though mortgage growth will lag behind inflation. Earlier interest rate cuts by the Monetary Policy Council (RPP) have not changed this outlook.
“Not all products grow at the same pace. The fastest growth is seen in cash loans, and surprisingly well are credit cards, which are sometimes volatile, as well as various types of credit limits,” said Sławomir Grzelczak, Vice President of the Management Board of BIK, in an interview with the Newseria news agency. “We are seeing declines in mortgage loans, but this is due to a year-on-year comparison — last year around this time, the Safe Mortgage 2% program was ending, and during that period there were months when as much as PLN 10 billion in mortgages were granted. Now there is somewhat less, but if you exclude the effect of the Safe Mortgage program, mortgage lending is doing well and is also growing. We have recorded a drop in installment loans, which we assume is more of a seasonal phenomenon, but we are observing it.”
BIK data show that in the period from January to May this year, compared to the same period in 2024, banks and credit unions (SKOKs) granted more only in the category of cash loans (+23.5%). The other three credit products recorded negative growth rates: installment loans fell by 26.3%, mortgage loans by 10.9%, and credit cards by 2.9%. In terms of value, increases were recorded for cash loans (+33.1%) and credit card limits granted (+7.6%). Declines were noted for mortgage loans (-7.7%) and installment loans (-10.0%).
In May 2025 alone, compared to May 2024, banks and SKOKs granted fewer installment loans (-15.9%) but more mortgage loans (+23.7%), cash loans (+17.8%), and credit cards (+9.6%) in terms of number of contracts. The value of mortgages granted rose by 31.2%, cash loans by 24.5%, and credit card limits by 22.1%. Only installment loans showed a negative value dynamic (-4.5%).
“A definitely fast-growing part of the market is ‘buy now, pay later’ (BNPL). This is a non-bank product, often offered by loan institutions, which we call BNPL providers. About 25% of these loans then convert into installment loans. Sometimes they become bank installment loans if banks take them over, and sometimes they remain on the books of loan institutions, classified as part of the loan sector,” explained Sławomir Grzelczak.
BIK points out that last year the value of BNPL financing in Poland reached PLN 10.8 billion, and in the first quarter of this year PLN 2.9 billion, which was an increase of 24.5% compared to the first quarter of the previous year.
Meanwhile, corporate loan sales are deteriorating. In the first quarter of this year (data for the second quarter will be available at the end of July), compared to the first quarter of 2024, banks granted fewer loans to micro-enterprises (-4.9%) and for a lower amount (-2.4%). The only positive growth in this period, but only in value terms, was observed for overdraft loans (+2.1%). Negative dynamics were recorded for investment loans (-14.9%) and working capital loans (-2.1%). In terms of number of contracts, all types of loans declined: investment loans (-35.1%), overdrafts (-8.5%), and working capital loans (-6.0%).
“Corporate loans are a real problem in Poland. I talked with the Ombudsman for Small and Medium Enterprises, and I know there are ideas for guarantees for SMEs to enable them to grow, to have a lifeline in difficult times, so they can access bank capital, which is relatively cheap compared to private capital,” said the BIK Vice President. “This is probably an opportunity, and it’s worth discussing. Then we wonder why there is little investment, but where is investment supposed to come from if most small businesses do not have access to financing and effectively go bankrupt within their first year or three years of operation.”
He stressed that especially among smaller companies, credit activity is a problem, while the situation is much better in large enterprises.
“For a very long time, it has been noted that small and medium enterprises in Poland are poorly bank-financed. This ranges from about 5% to a little over 10%, depending on the size of the small company — which is very low. Companies do not get loans mainly because bank procedures require income, and often a small company does not yet have income or has low income, so banks are probably afraid to provide this lifeline and therefore do not do so. In this respect, leasing works quite well. The leasing sector has been somewhat rescuing small and medium companies for a long time. They take on more risk, but on the other hand, there is always a leased asset, so in the worst case it serves as collateral for the loan,” explained Sławomir Grzelczak.
According to the BIK Vice President, although interest rate cuts will stimulate credit activity, this will not happen immediately. In May, the Monetary Policy Council lowered interest rates for the first time in a year and a half, cutting by 50 basis points immediately. In July, quite unexpectedly for the markets, it made a second cut, this time by a classic 25 basis points, and the NBP President, Prof. Adam Glapiński, announced further cuts, provided inflation does not rebound — which, as he noted, currently seems unlikely. BIK’s January 2025 forecasts assume a slight increase in mortgage loan sales value by 1.2%, to PLN 88.2 billion, and growth in cash loan sales by 5.9%, to PLN 100.5 billion.
