Data from Poland’s Credit Information Bureau (BIK) shows the value of cash loans taken out from loan companies, not banks and credit unions, increased by 44.6 percent in October versus the previous year.
In October this year, the average payday loan was 2,670 zlotys (€620), 11.1 percent higher than the average amount granted in October 2023. In total, companies granted Poles 522,000 cash loans, a 30.2 percent increase year over year, with a total value of 1.4 billion zlotys, 44.6 percent higher than the same period last year.
Cash loans are paid directly to the customer’s account and can be used for any purpose, including improving the household budget. Payday loans are typically seen as risky, as they carry high interest rate penalties. However, they tend to grow in popularity in tandem with a difficult economy.
BIK also provided data on the number of special-purpose loans granted. This category is characterized by low-value loans intended for a specific purpose, such as for purchases in online stores and other platforms, but also loans for cars, dental services, or cosmetic surgery.
The average value of a newly granted special purpose loan in October 2024 amounted to 702 zlotys, 8.5 percent higher than in 2023. The number of newly granted special purpose loans in October this year increased by 2.7 percent year over year, while their total value jumped 11.4 percent.
Poles have been battling continuous inflation this year, making basic food items more and more expensive. And just this week, Remix News reported that rising energy costs and higher salaries for apartment management companies will mean higher fees for apartment owners and renters alike in the new year.
Rising energy costs and a higher minimum wage are set to increase fees and rent for residents. https://t.co/I5daUvJhnj
— Remix News & Views (@RMXnews) November 25, 2024
