The year 2024 ended with a significant increase in the value of the loan and credit portfolio and a notable rise in newly issued obligations. By the end of the year, the total value of loans and credit obligations reached a record 760.6 billion PLN, reflecting a 5.5% year-over-year growth, according to a report by the Credit Information Bureau (BIK). Over the past 12 months, borrowers took out loans and credits worth 248.8 billion PLN, marking an increase of over 32% compared to 2023. Sales of most credit and loan products saw double-digit growth.
The highest demand was observed for cash loans and mortgage loans, with banks issuing 94.9 billion PLN and 87.1 billion PLN, respectively. These two products accounted for 73% of the total value of household financing in 2024.
“The ability to borrow and the demand for credit in 2025 will largely depend on macroeconomic factors such as wage levels, unemployment rates, inflation, and interest rates,” said Dr. Mariusz Cholewa, CEO of BIK.
Key Drivers of Growth in 2024
The year 2024 was notably better than previous periods for the credit and loan market. Most products saw high growth dynamics, with credit limits maintaining their 2023 levels. Despite persistently high interest rates and the absence of a new round of housing credit support programs, the year brought clear increases in the value of both outstanding loan portfolios and newly issued obligations.
“The value of new financing provided to clients in 2024 exceeded our expectations,” said Dr. Cholewa.
Key contributing factors included:
- Wage Growth: An 11% increase in wages enhanced creditworthiness and encouraged timely repayment of loans and non-bank credit obligations.
- Low Unemployment: A 5.1% unemployment rate bolstered financial security and drove higher demand for loans.
- Moderate Inflation: An annual inflation rate of 3.6% allowed for better portfolio management.
- Stable Interest Rates: Although still high, stable rates facilitated consumer confidence and credit activity.
Record Loan and Credit Portfolio
The total value of private loans and credits reached a historic 760.6 billion PLN, an increase of 39.7 billion PLN compared to 2023. Mortgage loans accounted for the largest share at 68.9% (524.3 billion PLN), followed by cash loans at 22.8% (173.5 billion PLN).
Other credit products, such as installment loans (28.9 billion PLN), credit cards (13.9 billion PLN), and credit limits (9.1 billion PLN), played a smaller role. Non-bank cash loans reached 6.9 billion PLN, and purpose-specific loans totaled 2.6 billion PLN. The emerging Buy Now, Pay Later (BNPL) segment recorded an impressive 0.8 billion PLN by year-end.
Housing and Cash Loans Dominate
In 2024, the value of issued mortgage loans amounted to 87.1 billion PLN, a 36.1% year-over-year increase. Of this, 13.6 billion PLN stemmed from applications filed under the “Safe Mortgage 2%” program in 2023. Excluding this program, pure market-driven mortgage loans amounted to 73.5 billion PLN.
Cash loans reached 94.9 billion PLN, with a 28.6% year-over-year growth. A significant portion of high-value housing loans (above 600,000 PLN) grew by nearly 115%, driven by rising property prices and improved creditworthiness.
Non-Bank Loans and the BNPL Boom
Non-bank loan companies issued loans worth 21.7 billion PLN, a 49% year-over-year increase. BNPL services doubled their value to 10.7 billion PLN, marking a 101.8% year-over-year growth. This payment method, especially popular among younger consumers under 44 years old, has introduced new customers to the financial market.
Positive Outlook for 2025
Despite persistent inflation and high interest rates, the credit and loan market is expected to continue its upward trend in 2025. Key factors include low unemployment, rising incomes, and stable economic growth. BIK forecasts a 1.2% growth in mortgage sales to 88.2 billion PLN and a 5.9% increase in cash loan sales to 100.5 billion PLN.
The non-bank loan market is also expected to grow moderately, with cash loans forecasted to reach 15.9 billion PLN in 2025. Installment loans and purpose-specific loans are expected to see growth rates of 4.9% and 8.7%, respectively.
“The 2025 credit market holds promise for sustainable growth, driven by improving macroeconomic conditions and rising consumer confidence,” concluded Dr. Cholewa.
Source: Credit Information Bureau (BIK) Annual Report 2024
