In October 2025, compared with October 2024, banks and credit unions (SKOKs) issued more loans of every type. In numerical terms, the number of loans granted increased for housing loans (+36.5%), installment loans (+17.4%), cash loans (+8.6%) and credit cards (+6.0%). In value terms, banks and SKOKs also issued a higher total amount across all loan categories: housing loans (+45.0%), credit cards (+28.9%), cash loans (+15.9%) and installment loans (+4.6%).
Over the first ten months of 2025, compared with the same period in 2024, banks and SKOKs issued more cash loans (+19.8%) and housing loans (+10.5%). The remaining two credit products recorded negative dynamics: installment loans (–16.8%) and credit cards (–1.8%). In value terms, lending increased in cash loans (+28.2%), housing loans (+16.9%) and credit card limits granted (+9.3%). Only installment loans saw a decline (–5.8%).
Seasonal spike in installment loans
In October 2025, banks granted 17.4% more installment loans than in October 2024. Their total value also grew year-on-year (+4.6%). However, over the first 10 months of the year, the value of installment loans fell by 5.8%, making this the only one of the four loan categories to show a negative value trend in this period.
“Analysis of the latest installment-loan data shows growing interest in this banking product. In October, the downward trend visible since the start of the year — both in the number and value of loans — finally broke. Importantly, the increase applies not only year-on-year but also month-on-month. This suggests that the October boost is not just seasonal but may signal a longer-term recovery in the installment-loan market. This will be supported by further wage growth (though at a slower pace) and lower interest rates, which create ‘additional room’ for a new loan in household budgets already burdened with other credit payments, including mortgages.
High retail-sales growth may also support installment-loan demand in the coming months — but for this to occur, geopolitical uncertainty will need to ease, prompting Poles to increase consumption,”
— says Dr. Hab. Waldemar Rogowski, Chief Analyst at the BIK Group.
The average value of an installment loan issued in October 2025 was 2,155 PLN, an 11.0% decrease compared with October 2024.
Boom in cash loans
In October, cash-loan lending continued to expand. The number of loans granted rose by 8.6% year-on-year, while their total value increased by 15.9%.
“Since the beginning of the year, borrowers have been taking out increasingly larger cash loans. The growth is driven mainly by high-value loans above 50,000 PLN. This is not new — the same pattern appeared in previous years.
In October, the average value of a cash loan exceeded 26,800 PLN (+6.7% y/y). Such high borrowing is possible thanks to two factors: longer loan terms and lower interest rates on new loans (following interest-rate cuts), which improve credit capacity and create more room for additional financing. Moreover, as real wages rise, borrowing capacity also improves.
Strong performance in the first ten months of this year is reflected in the total cash-loan value already exceeding 100 billion PLN. At this growth rate, reaching the highest annual lending volume in history now appears highly likely,”
— the BIK chief analyst concludes.
The average cash-loan amount issued in October was 26,812 PLN, an increase of 6.7% compared with October 2024.
Housing loans — heading for a historic record
In October 2025, banks issued 36.5% more housing loans than in October 2024, and 2.1% more than in September 2025. The value of mortgages granted increased by 45.0% year-on-year and by 2.4% month-on-month.
“Market sentiment in the housing-loan segment is exceptionally strong, as evidenced by October’s loan volume of 10.86 billion PLN — the highest monthly result in history. This exceeds the previous record, set in September, by 191 million PLN. The average housing-loan amount has now surpassed 450,000 PLN.
This high level of activity is driven by growing borrowing capacity — supported by falling interest rates — as well as continued real wage growth. Buyers are also motivated by the favorable conditions on the housing market,”
— explains Professor Rogowski.
In October, the average housing-loan amount reached 450,810 PLN, 6.2% higher than a year earlier.
Loan-repayment quality remains stable
Improved October readings of all three main BIK credit-quality indices — both month-on-month and year-on-year — indicate a stable, low level of credit risk.
“The BIK Quality Indices for the three key loan categories have improved and remain at a safe level, signaling low credit risk. It is also positive that in cash loans and housing loans — the two largest market segments — repayment quality has been improving consistently year-on-year.
What may be concerning is the rising loss rate in credit cards, now 0.09 percentage point higher than in cash loans. This means credit cards have become the highest-risk product, replacing cash loans, which held that position in recent years.
If this trend intensifies in the coming months, it could serve as a serious warning — historically, rising credit-card loss rates have been the first sign of deteriorating household financial conditions. Continuous monitoring of the Quality Indices is therefore essential to detect early signals of potential deterioration in the credit portfolio,”
— explains Waldemar Rogowski.
