Fewer loans for micro-enterprises in March 2025, overdrafts show growth

In March 2025, Polish banks granted 2.9% fewer loans to micro-enterprises compared to March 2024, with the total loan value declining by 4.4%, according to data from the BIK Group. Overdraft loans were the only category showing growth, with a 4.5% increase in value compared to other loan types.

Looking at the first quarter of 2025, overdrafts again stood out as the only loan segment with positive growth, recording a 2.1% increase in value. By sector, the service and commercial industries accounted for the highest number of loans granted in March, while in terms of value, only the manufacturing sector recorded positive growth, at 6.0%.

According to Dr. Waldemar Rogowski, chief analyst at BIK Group, the overall decline in lending is part of a broader trend of deleveraging, where businesses reduce debt in favor of equity financing. High interest rates and economic uncertainty, both globally and domestically, have contributed to a significant drop in investment loans, with the number of such loans falling by 31.4% year-on-year.

Rogowski noted that Poland’s investment-to-GDP ratio has remained low for the past decade (around 17% compared to the EU average of 21%), limiting demand for long-term financing. However, potential factors such as funds from the National Recovery Plan (KPO), tax incentives, and possible interest rate cuts could improve conditions for investment loans going forward.

The rise in overdraft loans reflects micro-enterprises’ need to maintain liquidity amid growing payment delays. “Micro-companies face overdue receivables more often than medium or large companies, which may explain the increased use of overdrafts – the only loan type showing positive dynamics since the start of the year,” Rogowski added.

Source: BIK