Polish non-bank loan market sees growth in February 2025

The Polish non-bank loan market continues to expand, driven by two main product segments: special-purpose loans and cash loans, each with distinct characteristics and trends.

Special-Purpose Loans: Moderate Growth Amid Lower Average Loan Value

Special-purpose loans are granted to finance specific purchases of goods or services, rather than providing direct cash to borrowers. In February 2025, the average value of a newly issued special-purpose loan stood at PLN 675, marking a 5.8% decline compared to the same period in 2024.

Despite the drop in average loan value, the number of newly issued special-purpose loans surged by 18.8% year-over-year (y/y), while their total value increased by 12.0% y/y. This suggests a trend toward issuing lower-value loans more frequently. Unlike previous years, all special-purpose loans granted in February 2024 were reported, eliminating any distortion from incomplete reporting and ensuring that the February 2025 figures accurately reflect market conditions.

Cash Loans: Strong Performance Across Short and Long-Term Segments

Cash loans, which are directly deposited into borrowers' accounts for discretionary use, exhibited robust growth in February 2025. These loans are categorized based on their duration:

1) Short-Term Cash Loans (Up to 60 Days)

- The average loan value reached PLN 2,523, reflecting a 12.1% increase from February 2024.

- Total loan sales amounted to PLN 994 million, up by 31.5% y/y.

- The number of short-term cash loans issued increased by 16.9% y/y.

- These loans accounted for 72.7% of the total value of all cash loans granted in February 2025.

2) Long-Term Cash Loans (More than 60 Days)

- A total of 67,000 loans were issued, amounting to PLN 374 million.

- Compared to February 2024, this represents a 16.7% increase in the number of loans issued and a 30.4% rise in total loan value.

- The average loan value for long-term cash loans rose to PLN 5,603, marking a 12.2% increase y/y.

Similar to special-purpose loans, February 2024 saw complete reporting of cash loans, ensuring an accurate basis for comparison in 2025.

Market Trends for Early 2025

Between January and February 2025, non-bank loan companies issued significantly more loans compared to the same period in 2024:

- Special-purpose loans increased by 22.1% in number and 13.4% in value.

- Short-term cash loans (up to 60 days) rose by 19.1% in number and 33.6% in value.

- Long-term cash loans (more than 60 days) grew by 18.8% in number and 35.7% in value.

These trends highlight the ongoing expansion of Poland's non-bank lending sector, with strong demand for both short-term and long-term credit products. While special-purpose loans remain the dominant category in terms of loan volume, cash loans account for a higher total loan value, reinforcing their critical role in the financial ecosystem.

Source: BIK