Loan companies in Poland see strong growth in special-purpose and cash loans in January

Loan companies in Poland issued significantly more special-purpose and cash loans in January 2025, according to data from the Credit Information Bureau (BIK). The number of special-purpose loans increased by 24.9% year-on-year (y/y), while the total value of these loans rose by 13.8%. Similarly, the volume of short-term cash loans, commonly referred to as “wemmies,” grew by 21.8% y/y, with a 35.8% increase in their overall value.

Loans granted for periods exceeding 60 days also saw substantial growth, with a 19.1% rise in the number of loans issued and a 39.6% increase in total value compared to January 2024.

The average amount of a newly issued special-purpose loan in January 2025 was PLN 644, which is 8.9% lower than the average loan amount from a year earlier. This suggests that borrowers were increasingly opting for smaller loans, leading to a decline in the average loan size despite the higher number of loans issued. BIK also noted that by January 2024, all granted special-purpose loans had been fully reported, meaning that the 2025 figures provide an accurate reflection of the current market conditions, without the impact of previous data underreporting.

The average payday loan issued in January 2025 amounted to PLN 2,487, reflecting an 11.7% increase from the previous year. The total value of payday loan sales reached PLN 1.053 billion, a 35.8% increase y/y, with wemmies accounting for 72.3% of the total value of cash loans issued that month.

For longer-term cash loans exceeding 60 days, a total of 74,000 loans were granted in January 2025, with a total value of PLN 404 million. This represented a 19.1% rise in the number of loans issued and a 39.6% increase in overall loan value compared to January 2024. The average loan amount for this category rose to PLN 5,497, an increase of 15.5% y/y.

Deferred Payments (BNPL) Gaining Popularity

Buy Now, Pay Later (BNPL) services continue to expand as an important segment of the Polish financial market. In January 2025, a total of 5.37 million BNPL transactions were recorded, reflecting a 21% increase y/y, with a total transaction value of PLN 931 million, up 25% y/y.

Loan Repayment and Default Trends

BIK data indicates that special-purpose loans have the highest repayment reliability, with a default rate of just 1%, similar to installment loans offered by banks. Short-term cash loans with repayment periods of up to two months showed a 4% default rate, whereas longer-term cash loans exceeding 60 days had a significantly higher default rate of 10%, surpassing the levels observed in the bank lending sector.

The Non-Performing Loan (NPL) index, which tracks overdue liabilities, showed improvement in January 2025. The overall quality of cash loans improved, with the share of outstanding loans exceeding 90 days falling to 18.2%, a 6-percentage-point improvement y/y. Meanwhile, the default rate for special-purpose loans remained relatively low at 4.3%, increasing slightly by 0.2 percentage points y/y.

The data suggests that while the demand for loans continues to grow, borrowers are managing repayments more effectively, particularly in short-term lending. At the same time, the rising popularity of BNPL services highlights shifting consumer preferences in Poland’s financial market.

Source: ISBnews and Credit Information Bureau (BIK)