Non-bank lending market in Poland grows by 31.9% year-on-year in July

The non-bank lending sector in Poland saw significant growth in July, with the total value of loans reaching PLN 1.88 billion, marking a 31.9% increase year-on-year, according to a report from the Credit Information Bureau (BIK). Despite the higher loan value, the number of loans granted decreased by 7.9%, totaling 1.216 million for the month.

From January to July 2024, non-bank loan companies issued a total of PLN 12.05 billion in commitments, reflecting a substantial 74.9% rise compared to the same period last year. The breakdown of this growth includes PLN 8.236 billion in cash loans, up by 60.4% year-on-year, PLN 3.411 billion in targeted loans, a staggering increase of 126.9%, and PLN 0.402 billion in cards and loan limits, up by 60.9%.

“July’s non-bank loan sales of PLN 1.883 billion were the highest on record. Cash loans led the way, with PLN 1.336 billion granted in July, also a record high, representing a 49.1% increase year-on-year. The value of new targeted loans grew by 6.4%, while the amount allocated to cards and loan limits fell by 30.5%,” stated the BIK report.

In July 2024, the structure of non-bank lending by the number of loans issued was dominated by targeted loans at 58.3%, followed by cash loans at 41%, and cards and loan limits at 0.7%. In terms of value, cash loans represented 71%, targeted loans 27.2%, and cards and loan limits 1.8%. This disparity highlights a key characteristic of Poland’s non-bank lending market, where targeted loans are typically for smaller amounts, whereas cash loans involve larger sums, similar to installment loans.

The average cash loan granted in July 2024 was valued at PLN 2,684, a 17.9% increase from July 2023. Meanwhile, the average new targeted loan was PLN 724, up by 37.1% compared to the previous year.

Source: BIK and ISBnews