Poland’s Credit Information Bureau (BIK) reports a significant surge in the demand for cash loans, particularly from non-bank lenders. In October, the value of these loans jumped by 44.6% compared to the same month last year.
The average payday loan amount for October was 2,670 zlotys (€620), marking an 11.1% increase from the previous year. In total, loan companies issued 522,000 cash loans, a 30.2% rise year-over-year, amounting to 1.4 billion zlotys.
Cash loans, which are paid directly into the borrower’s account and can be used for any purpose, have become increasingly popular amid Poland’s tough economic conditions. These loans come with high interest rates, making them risky, but they’re often a go-to solution when financial pressures mount.
Alongside cash loans, BIK also shared insights into the rise of special-purpose loans, which are typically lower-value loans designated for specific needs, such as online purchases, car loans, or even medical expenses. The average special-purpose loan granted in October 2024 was 702 zlotys, an 8.5% increase from last year. The number of such loans grew by 2.7%, and their total value saw an 11.4% rise.
The surge in loan activity comes as Poles continue to grapple with persistent inflation, which has driven up the cost of everyday goods. Just this week, Remix News reported that rising energy prices and increased fees for apartment management will lead to higher costs for both apartment owners and renters in the new year.
