Polish loan market sees 32.5% growth in Q4, driven by existing customers

The total value of loans granted by companies in the non-bank lending sector rose by 4.1% quarter-on-quarter and 32.5% year-on-year, reaching PLN 4.52 billion in Q4 2024, according to a report by the Association of Financial Enterprises in Poland (ZPF) and CRIF. During this period, loan institutions issued 1.13 million loans, reflecting a 15% increase compared to the previous year.

“Data shows that loan institutions reject up to three-quarters of customer applications. In December, the rejection rate stood at 77%, highlighting the sector’s focus on portfolio quality and responsible lending. Credit assessment processes continue to evolve, with risk management remaining a top priority,” said Marcin Czugan, President of ZPF, as quoted in the report.

The share of new customers among total borrowers has been declining, falling to 9.4% in December 2024, compared to 10.9% in December 2023 and 19.1% two years earlier. Czugan noted that the simultaneous increase in loan volume and decline in new customer share reflects the sector’s strategy of prioritizing relationships with existing, well-established clients.

According to the December 2024 study, the average loan amount granted by non-bank institutions was PLN 3.9 thousand, marking a 2.8% year-on-year and 3.6% month-on-month decline. Additionally, 46.5% of loans issued in December had a value of no more than PLN 2,000.

A growing trend in recent quarters has been the increasing demand for short-term credit products, with loans up to 90 days becoming more common, particularly for smaller amounts, the report concluded.

Source: ZPF/CRIF and ISBnews