Poland: Special purpose loans drop by 2.1%, cash loans surge by 40.7% in September

Loan companies saw a sharp divergence in lending trends in September, with special-purpose loans falling 2.1% year-on-year while cash loans experienced a substantial increase of 40.7%, the Credit Information Bureau (BIK) reported.

In total, companies granted 691,000 special-purpose loans, a 25% drop in volume, totaling PLN 0.489 billion, a 2.1% decrease from last year. Conversely, cash loans surged by 20.5%, with 485,000 loans issued, amounting to PLN 1.291 billion. The average special-purpose loan value in September was PLN 707, marking a 30.4% increase over last year, while the average cash loan rose to PLN 2,661, a 16.8% increase.

For the first nine months of 2024, the lending landscape expanded notably, with loan companies granting 6.1 million loans totaling PLN 4.383 billion, a year-on-year increase of 62.6% in volume and 74.1% in value. Cash loans specifically saw significant growth, with 4.2 million units issued at a total of PLN 10.87 billion, representing a 54.9% increase from the previous year.

In terms of volume, special-purpose loans remained the most commonly issued, while cash loans dominated in overall value, according to BIK.

Source: BIK and ISBnews