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Polish Non-Bank Loan Market Booms in May 2024

FINANCEPolish Non-Bank Loan Market Booms in May 2024

In May 2024, lending companies issued a total of 1,201,000 new loans valued at 1.827 billion PLN. Compared to May 2023, this represents an increase of +105.3% in the number of loans and +72.9% in their total value.

From January to May 2024, lending companies issued obligations totaling 8.42 billion PLN, marking an increase of 103.1% compared to the same period in 2023. The value of cash loans amounted to 5.683 billion PLN (+69.2% year-over-year), targeted loans reached 2.41 billion PLN (+280.8% year-over-year), and loan cards and limits totaled 0.33 billion PLN (+113.6% year-over-year).

The value of non-bank loan sales in May (1.827 billion PLN) was the highest in history. The largest portion of this sales figure was comprised of cash loans, amounting to 1.256 billion PLN (also a record high). The highest growth in cash loan sales, both in terms of number and value, was observed among high-value obligations (over 5,000 PLN), where the growth rates were +94.9% and 93.6% year-over-year, respectively. The growth rates for targeted loans and loan cards and limits are even higher, but in May of the previous year, lending companies were not yet providing full information on these products to BIK, so the reference point remains understated in this case.

In May, 58.5% of non-bank loan sales in terms of number were targeted loans, 40.3% were cash loans, and 1.2% were loan cards and limits. In terms of value, 28.0% were targeted loans, 68.8% were cash loans, and 3.2% were loan cards and limits. This differing numerical and value structure indicates the main feature of the Polish non-bank loan market. Targeted loans are issued for lower amounts, while cash loans are issued for higher amounts, similar to the case with installment and cash credits.

The average value of a cash loan issued in May 2024 was 2,595 PLN, which was 13.6% higher than the average amount issued in May 2023. Meanwhile, the average value of a new targeted loan issued in May 2024 was 729 PLN, which was 27.6% lower than the average value of such a loan issued a year earlier.

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