In November 2023, loan companies granted a total of 1,136.0 thousand new loans worth PLN 1.522 billion. Compared to November 2022, the loan companies working with BIK granted (+201.1%) more loans for an amount higher by (+79.4%).
During November’s sales of non-banking loans, 64.5% represented purpose loans, 34.4% were cash loans, and 1.1% were credit cards and loan limits. In terms of value, 35.4% were purpose loans, 61.6% were cash loans, and 3.0% represented credit cards and lending limits.
This different numerical and value structure shows the main characteristic of the Polish non-banking loan market. Purpose loans are granted for smaller amounts, while cash loans are for larger amounts, just as it happens with installment loans and cash loans.
In November 2023, compared to the same period last year, the dynamics of cash loans was (28.7%) in numerical terms and (+33.1%) in terms of value.
The average value of a newly granted purpose loan in November 2023 was PLN 734, which was 62.3% lower than the average loan granted in November 2022. Meanwhile, the average value of a newly granted cash loan in November 2023 was PLN 2,401 and was 3.4% higher than the average value of a loan granted in November 2022.
During the period from January to November 2023, loan companies granted a total of 8.818 million loans – an increase of (+127.2%) compared to the same period in 2022, for a total amount of PLN 12.063 billion (+43.5%).
– This year’s high growth rates, particularly in the purpose loan sector, are largely a result of the entry into force of the Act amending laws to counteract usury, as a result of which, as of May 18, 2023, transactions were reported by companies that started cooperating with BIK. At the same time, companies previously cooperating with BIK have passed on previously unreported transactions. The increase in the number of loans granted is primarily due to loans granted for online shopping (purpose loans, also including some purchases with a deferred payment after the interest-free period), which are repaid over several monthly installments. In terms of numbers, the unquestionable leader of the non-banking loan market is purpose loans, and in terms of value – cash loans. This is a characteristic feature of the Polish non-banking loan market. Purpose loans are the equivalent of installment loans, and cash loans – cash loans. The good situation on the labor market, low unemployment, and real wage growth also encourage borrowing – says Dr. hab. Waldemar Rogowski, the chief analyst of the BIK Group.
