Polish Loan Market in August 2025 Shows Mixed Trends

The Polish lending market showed a split picture in August 2025, with demand for housing and cash loans rising sharply while installment lending continued to decline.

According to new data, banks and credit unions issued nearly 30 percent more mortgages than in the same month of 2024, with the overall value of housing loans climbing by around 40 percent. Cash loans also grew strongly, both in the number granted and in their total value, with the average amount per loan exceeding 25,000 złoty. Analysts note that higher real wages and lower borrowing costs compared with last year are boosting households’ ability to borrow larger sums.

Installment credit, by contrast, remains under pressure. The number and value of these loans fell in August compared with a year earlier, extending a decline that has been visible throughout 2025. Market specialists attribute this weakness to reduced volumes of smaller-ticket financing, though loans linked to more expensive goods and services remain steadier.

Credit cards also saw modest declines in issuance, though the total value of card limits edged higher.

Mortgage activity stood out as the strongest segment. Demand for new housing loans in August was more than 50 percent higher than a year ago, with the average mortgage amount reaching roughly 457,000 złoty. Commentators highlight that part of this increase reflects a low base from late 2024, when high interest rates curbed affordability and limited loan approvals.

While lending volumes are rising in some areas, credit quality indicators remain broadly stable. Experts describe the risk environment as safe for the moment, though they caution that uncertainty in the global outlook and ongoing legal challenges in the banking sector could weigh on sentiment.