Loan companies granted 233.8% more loans for an amount higher by 101.9% y/y in January this year, according to the Credit Information Bureau (BIK). Total customer debt with loan companies amounted to PLN 1.115 billion.
“The non-bank lending market maintains a high growth rate. In January this year, loan companies cooperating with the BIK reported a 234% increase in the number of loans granted for an amount more than 100% higher. Such a significant increase in the number of non-bank loans granted is largely due to loans granted for online purchases, the repayment of which is spread over several monthly instalments. This is the result of the spread of the deferred payment method known in online shops as ‘Buy now, pay later’ and the transformation of such commitments into so-called targeted loans, i.e. loans for the purchase of goods and services. These are now very popular. In January, they accounted for almost 60% of the number of all loans granted. There are a lot of them, while they are granted for relatively small amounts. The value of a targeted loan is more than 70% lower than the average cash loan. This is due to the fact that most often this type of targeted loan finances online purchases of low amounts,” said BIK analysis team leader Slawomir Nosal.
In January this year. 58.9% were targeted loans, 40% cash loans and 1.1% cards and loan limits. In value terms, 29% were targeted loans, 67.8% cash loans and 3.2% cards and loan limits, it also stated.
The average value of a new purpose loan granted in January 2024 was PLN 761, 78.7% lower than the average value of a loan granted in January 2023, BIK reported
The average value of a new cash loan granted in January 2024 was PLN 2,620, 5.6% higher than the average value of a loan granted in January 2023, according to BIK data.
Source: BIK and ISBnews
