Polish loan market shows year-on-year growth despite August slowdown

The Polish loan market showed mixed results in August, with reports indicating both monthly slowdowns and significant year-on-year growth. According to data from ZPF and CRIF, the number of loans issued fell by 1.6% and their total value decreased by 4.5% compared to July. However, on an annual basis, the market continues to expand, with the number of loans up 10.2% and total value increasing by 17.6% year-over-year.

Data from BIK provides a broader view, noting that lending companies issued loans totaling approximately 2.58 billion PLN in August, a nearly 17% increase compared to the previous year. Installment loans saw the fastest growth, with value increasing by 26.2% year-on-year. Cash loans under 60 days accounted for the majority of the market, while loans exceeding 60 days also saw an 8.4% increase in volume.

Despite the growth, credit tightening is evident. The rejection rate for loan applications reached a high of 83.5% in August. Additionally, the share of new customers is on a long-term downward trend, representing only 9.1% of borrowers in August.