The first half of 2025 brought a clear revival in Poland’s consumer credit and loan market, according to data from the Credit Information Bureau (BIK). The total value of new obligations reached PLN 139 billion, marking a 13% year-over-year increase. The strongest growth came from cash loans and non-bank loans, alongside the rising popularity of Buy Now, Pay Later (BNPL) services. In contrast, the installment loan segment saw a noticeable decline.
Cash Loans Regain Popularity
Cash loans were the biggest winners amid favorable macroeconomic conditions: falling inflation, lower interest rates, rising wages, and a stable job market. The value of loans in this segment jumped 32% to PLN 58.3 billion. The number of contracts signed increased by 23%, signaling greater demand for high-value financing. Notably, half of all cash loan sales were for consolidation purposes—allowing customers to reduce the cost of servicing prior debt.
“One in three borrowers used a cash loan for day-to-day expenses or home renovations. Medical services were also a common reason for taking out loans,” said Dr. Waldemar Rogowski, Chief Analyst at BIK Group.
Non-Bank Loans See Strong Rebound
The non-bank loan market also performed well. The total value of loans issued rose nearly 30%, while the number of contracts increased by more than 16%. Most customers use these loans to cover everyday expenses—or to repay previous debts.
“Our research shows that 43% of Poles report monthly expenses exceeding their income. This means a portion of borrowers rely on external financing as part of their regular financial routine,” noted Prof. Rogowski.
BNPL Booming – Especially Among Young Consumers
The BNPL (Buy Now, Pay Later) segment is growing faster than any other form of consumer financing. In the first half of 2025, the value of BNPL transactions reached PLN 6.3 billion, with 1.48 million active users. An impressive 74% of transactions were repaid within the interest-free period, and only one in four were split into installments.
BNPL is also becoming many young people’s first contact with credit. Some 55% of new BNPL users are under the age of 24.
“BNPL plays an educational role and prepares young adults for more advanced financial products. This is especially important as the number of active credit users has dropped by over half a million in the past five years,” emphasized Sławomir Nosal from BIK.
Mortgage Market Stable, But Waiting for a Boost
The mortgage sector maintained sales volume at PLN 45.9 billion, despite a year-on-year slowdown. However, after adjusting for the effects of the former BK 2% mortgage subsidy program, real growth exceeds 40%. Foreign borrowers—mainly from Ukraine and Belarus—now account for 8% of all housing debt.
Interest is highest among residents of major cities and those taking out mortgages over PLN 600,000.
Installment Loans Losing Favor
The only segment in decline was installment loans. The number of contracts fell by 25%, and the value dropped by 9%. Consumers are increasingly opting for more flexible financing options such as BNPL and cash loans.
“After years of growth, installment loans are losing their appeal. The popularity of 0% offers is fading, and consumers are more cautious about big purchases,” commented Rogowski.
Loan Repayment Quality Improves
A positive signal for the market is the improving quality of loan repayment. The largest improvement was seen in the non-bank loan segment, with default rates dropping by 5.2 percentage points. Bank-issued cash loans also saw a 1.4-point drop in defaults past 90 days. Mortgage loans remain stable, with only 4% in arrears.
Outlook for H2 2025
Analysts expect continued momentum in the mortgage segment in the second half of the year, driven by lower interest rates and improved borrowing capacity. Cash loan growth may slow slightly but will remain strong. Non-bank loans are also expected to grow.
On the other hand, installment loans are likely to continue weakening, reflecting shifts in shopping behavior and the growing preference for flexible online financing.
The Bottom Line
Poland is returning to a path of credit growth—but the structure of consumer finance is changing rapidly. Cash loans and BNPL are gaining ground, while non-bank loans are experiencing a resurgence.
Source: ManagerPlus.pl
