May 2025 brought a notable revival in certain segments of the credit market. Banks and credit unions (SKOKs) issued more mortgage loans, cash loans, and credit cards compared to the same month last year. The only product to show a year-over-year decline in both volume and value was installment loans.
Cash Loans: Growth Trend Continues
In May 2025, the number of cash loans granted increased by 17.8% year-on-year, while their total value rose by 24.5%. The average cash loan amount reached PLN 26,041, marking a 13.6% increase compared to May 2024.
“Borrowers are taking out increasingly higher cash loans. This is mainly due to loan consolidations, longer repayment terms, and more favorable financial conditions,” explained Prof. Waldemar Rogowski, Chief Analyst of the BIK Group.
“High-value loans over PLN 50,000 now dominate. After five months, their total value already stands at PLN 48.35 billion. Reaching PLN 100 billion by the end of 2025 seems almost certain,” he added.
Mortgage Loans: Clear Market Rebound
Year-on-year, the number of mortgage loans granted in May rose by 23.7%, and their total value by 31.2%. Compared to April, this represented an increase of 1.3% in volume and 1.7% in value. The average mortgage loan hit a record high of PLN 439,290, up 6% from a year earlier.
“Mortgage sales in May confirm a market revival, despite the absence of support programs and persistently high interest rates,” noted Prof. Rogowski.
“The total loan value reached PLN 8.25 billion—a level not seen since 2021. Growth is driven by expectations of future interest rate cuts and stabilized housing prices. The low base from May 2024 also amplifies these positive dynamics,” he added.
Installment Loans Still in Decline
Installment loans remained the weakest segment. In May, the number of such loans dropped by 15.9% year-on-year, while their total value declined by 4.5%. However, the average loan amount rose by 13.6%, reaching PLN 2,213.
“The decline results from fewer low-value transactions, often related to the conversion of BNPL (Buy Now, Pay Later) obligations into bank loans,” explained Prof. Rogowski.
“Although demand for higher-priced goods keeps the total value relatively stable, improvement in this segment will likely require a boost in consumption. And that depends on reducing geopolitical, political, and economic uncertainty,” he assessed.
Credit Cards: Moderate Growth
In May 2025, the number of credit cards issued rose by 9.6% year-on-year, and the value of credit limits granted increased by 22.1%. However, over the five-month period from January to May, there was a 2.9% decrease in the number of new cards issued, despite a 7.6% increase in total credit limits.
Loan Portfolio Quality Remains Solid
Although the BIK Credit Quality Indices slightly deteriorated month-over-month in May 2025, the year-on-year data shows a positive trend.
“The quality indices for all four credit product categories remain at safe levels, indicating low credit risk. We continue to see year-over-year improvement,” said Prof. Rogowski.
“At the moment, credit risk is not the main threat to banks. Legal risks seem more pressing—for example, challenges to the use of the WIBOR rate in mortgage loans or the application of free credit clauses in consumer loans,” he added.
