In July 2025, compared with July 2024, banks and credit unions (SKOKs) issued more housing loans (+31.7%), cash loans (+21.5%), and credit cards (+7.6%). The only segment to record a decline was installment loans, down by 8.1%. In value terms, institutions granted higher volumes of cash loans (+40.2%), housing loans (+39.8%), and credit cards (+16.5%), while installment loans remained flat.
For the period January–July 2025 compared with the same period of 2024, only cash loans recorded growth in number (+22.9%). Installment loans (-22.4%), credit cards (-2.3%), and housing loans (-0.6%) all fell. In value terms, cash loans (+33.2%), housing loans (+4.2%), and credit card limits (+7.1%) grew, while installment loans declined (-7.8%).
Weakening in Installment Loans
In July 2025, the number of installment loans issued fell by 8.1% year-on-year. Their value was stable compared with July 2024 but fell by 7.8% in the first seven months of the year.
“July data confirm the downward trend in installment loans visible since the beginning of the year, both in terms of volume and value. This is mainly the result of shrinking small-value transactions transferred from the non-bank sector (BNPL obligations). Although large-ticket installment loans for expensive goods and services are still rising, overall growth in this segment will require a major boost in consumer spending—which in turn depends on lower uncertainty and a shift from saving to consumption,” said Prof. Waldemar Rogowski, Chief Analyst at BIK Group.
The average installment loan in July 2025 amounted to PLN 2,198, up 8.9% from a year earlier.
Strong Growth in Cash Loans
The cash loan segment continues to expand strongly. In July, the number of loans rose by 21.5% year-on-year, while their value jumped by 40.2%.
“Borrowers are taking out increasingly larger cash loans. High-value loans above PLN 50,000 remain the main driver. In July, the average loan value reached nearly PLN 26,500. This is driven by both internal and external consolidations, longer repayment periods, and lower interest rates following recent rate cuts. The segment has already generated PLN 70 billion in financing in the first seven months of the year, and at this pace a record annual result looks very likely,” Rogowski added.
The average cash loan in July 2025 was PLN 26,498, up 15.4% year-on-year.
Housing Loan Growth Supported by Rate Cut Expectations
In July 2025, banks issued 31.7% more housing loans than in July 2024, and 15.7% more compared with June 2025. In value terms, housing loans rose by 39.8% year-on-year and 14.2% month-on-month.
“The scale of mortgage lending in July clearly shows increased interest in housing loans. Without any government subsidy program and despite relatively high interest rates, total lending amounted to nearly PLN 10 billion—the highest monthly level since January 2024, when demand was boosted by the Safe Credit 2% program. The strong year-on-year growth in July 2025 partly reflects a statistical base effect, since last July demand was held back by higher rates and the lack of program support,” Rogowski explained.
The average housing loan in July reached PLN 445,740, up 6.1% compared with a year earlier.
Credit Quality Remains Stable
Despite a slight month-on-month deterioration in the BIK Quality Index across all four loan types, year-on-year figures improved for cash and housing loans.
“The quality indices remain at relatively low, safe levels, indicating limited credit risk. It is particularly positive that in the two largest market segments—cash and housing loans—quality continues to improve year-on-year. While constant monitoring is needed to detect early signs of deterioration, the probability of significant risks remains low, especially with the prospect of further interest rate cuts. At present, banks face a bigger challenge from legal risks than from traditional credit risk,” Rogowski emphasized.
