In January 2024, loan companies cooperating with the Credit Information Bureau (BIK) granted a total of 1.115 million new non-bank loans worth GBP 1.567 billion. Compared to January 2023, the number of loans increased by (+233.8%) while the total amount increased by (+101.4%).
In terms of loan types granted in January 2024, purpose loans accounted for 58.9% of the total number, cash loans made up 40.0%, and credit cards and loan limits accounted for 1.1%. Regarding their value, purpose loans constituted 29.0%, cash loans made up 67.8%, and credit cards and loan limits comprised 3.2%.
This number and value distribution highlight a main feature of the Polish non-banking loan market. Purpose loans are granted for lower amounts, whereas cash loans are for higher amounts, similar to the way installment credits and cash credits are granted.
In January 2024 compared to the same period the previous year, the dynamics of cash loans numerically increased by (+49.5%), and in terms of value, it increased by (+60.4%).
The average value of a purpose loan granted in January 2024 was GBP 761, which was 78.7% lower than the average value of a loan granted in January 2023. On the other hand, the average value of a newly granted cash loan in January 2024 was GBP 2,620, which was 5.6% higher than the average value of a loan granted in January 2023.
“The non-bank loan market maintains a high growth momentum. In January this year, loan companies cooperating with BIK reported a 234% higher number of granted loans for over a 100% higher amount. This significant increase in the number of non-bank loans granted is mainly due to loans granted for online shopping, of which repayment is spread over several monthly installments. This is a result of the widespread adoption of the deferred payment method known in online stores as ‘buy now, pay later’ and the conversion of such commitments into so-called purpose loans, i.e., loans for the purchase of goods and services. These are now very popular. In January, they constituted nearly 60% of the total number of loans granted. There are many of them, however, they are granted for relatively low amounts. The value of a purpose loan is over 70% lower than the average amount of a cash loan. This is because these types of purpose loans most often finance low-value online purchases,” says Sławomir Nosal, head of the Credit Information Bureau’s Analysis Team.
