Credit market developments in Poland – May 2025
In May 2025, Poland’s credit market showed mixed trends across product categories. Compared to the same month in 2024, banks and credit unions issued fewer installment loans, which declined by 15.9% in number and 4.5% in value. In contrast, the volume of housing loans increased by 23.7%, cash loans by 17.8%, and credit card loans by 9.6%. The value of these products also rose significantly: housing loans by 31.2%, cash loans by 24.5%, and credit cards by 22.1%.
Looking at the January–May 2025 period compared to the same period in 2024, only cash loans recorded positive growth in volume, increasing by 23.5%. Installment loans fell by 26.3%, housing loans by 10.9%, and credit cards by 2.9%. In terms of total value, cash loans rose by 33.1% and credit card limits by 7.7%, while housing and installment loans dropped by 7.7% and 10.0% respectively.
The installment loan segment continued to show weakness in May, with the downward trend persisting both in the number and value of loans issued. This decline is largely attributed to the reduced volume of low-value BNPL-type transactions transferred from non-banking to banking institutions, a process that is now diminishing. However, the impact on loan value was partially mitigated by higher-value financing for more expensive goods and services. Analysts suggest that a recovery in this segment would depend on increased consumer spending, which in turn requires reduced uncertainty across geopolitical, political, and economic spheres. The average value of an installment loan in May was PLN 2,213, marking a 13.6% year-on-year increase.
Cash loans continued on an upward trajectory, with both the number and value of loans growing. The average loan amount reached PLN 26,041 in May, also up 13.6% from the previous year. The growth is supported by borrowers consolidating existing debt within the same bank or externally, allowing for higher loan amounts through extended repayment periods or more favorable interest rates. High-value cash loans above PLN 50,000 remained a key factor driving this trend. The total value of cash loans granted from January to May stood at PLN 48.35 billion, reinforcing BIK’s earlier projection that the sector could surpass PLN 100 billion in 2025.
The housing loan market showed strong momentum, with a 23.7% year-on-year increase in the number of loans issued in May and a 31.2% increase in value. This marks one of the strongest months since 2021, aside from the period supported by the Safe Loan 2% program. Without any current support schemes and despite elevated interest rates, the volume of loans reached PLN 8.25 billion. The average housing loan amount hit a new record at PLN 439,290, up 6.0% compared to May 2024. Analysts attribute this growth to buyer expectations of future interest rate cuts, stabilized property prices, and the statistical effect of comparing figures against a subdued May 2024 market.
Loan repayment quality remains stable. Although all four BIK Credit Quality Indices deteriorated slightly month-on-month in May, they showed improvement compared to the same period last year. The overall quality of household credit portfolios remains strong, with low credit risk levels. Analysts note that while classic credit risk is under control, banks now face growing legal risks—particularly from ongoing legal challenges to housing loan terms (such as disputes over the WIBOR rate) and sanctions related to consumer credit practices. Nonetheless, current indicators suggest no immediate threat to credit quality, especially if interest rates continue to fall.
Source: BIK
