The Polish non-bank loan market is based on two main distinct, specific product segments. The first one are purpose loans, characterized by the low amount they are granted for – the average value of a new purpose loan given out in September 2024 was PLN 707 ($188) and was 30.4% higher than the average value of such a loan granted a year earlier. These loans are intended for financing a specific purpose, such as the purchase of certain goods or services, so cash is not made available to the client.
In purpose loans there may be low-amount purchases on the internet for e-commerce platforms, but also loans for the purchase of cars or dental services or aesthetic medicine, characterized by higher amounts. They are usually granted for short periods and repaid very well. Thus, they have features that “resemble” them to bank installment loans.
The value of new purpose loans granted in September 2024 fell by -2.1% year on year. In numeric terms, the decline is even greater at -25.0% year on year.
In the first nine months of 2024, lending companies granted a total of 6.116 million loans for a total amount of PLN 4.383 billion ($1.16 billion), which represents an increase of 62.6% in numeric terms and 74.1% in value terms compared to the same period last year.
To some extent, the high dynamics can be attributed to regulatory changes concerning the reporting of granted loans to the Credit Information Bureau (BIK) that have been in force since May 18, 2023. Until then in 2023, not all purpose loans were reported, which understates the base for comparison.
The second segment consists of cash loans, which are paid directly into the customer’s account and can be used for any purpose, including patching up the household budget. A characteristic 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 terms – so-called “payday loans”, and those for high amounts and long, often multi-year terms. The latter type of loan is similar to bank cash loans. The average value of a cash loan granted in September 2024 was PLN 2,661 ($709) and was 16.8% higher compared to the average amount granted in Sept 2023.
The September value of cash loan sales (PLN 1.291 billion/ $343 million) was higher by +40.7% year on year. Positive dynamics year on year (+20.5%) also occurred in numeric terms. A total of 485,000 cash loans were granted in September.
Throughout the first three quarters of 2024, lending companies granted a total of 4.201 million cash loans (+35.3%) for PLN 10.870 billion ($2.89 billion), an increase of +54.9% compared to the same period in 2023. As with purpose loans, there is also a “regulatory effect” associated with full reporting from May 18, 2023 in cash loans.
In September 2024, in terms of numbers, purpose loans dominated the sales structure of non-bank loans, while in value terms, cash loans dominated.
Source: https://ceo.com.pl/pozyczki-pozabankowe-w-polsce-2024-porownanie-pozyczek-celowych-i-gotowkowych-79921
