Banks and credit unions in Poland recorded a strong increase in lending activity in March 2026, with mortgage loans reaching a historic monthly record in value terms. According to data from BIK, compared with March 2025, the number of housing loans granted by banks and credit unions rose by 59.0%, while the value of those loans increased by 72.2%.
Growth was also visible in other consumer credit segments. The number of instalment loans increased by 29.5% year on year, while their total value rose by 21.9%. Cash loans also recorded positive dynamics, with the number of loans up 12.3% and their value increasing by 20.6%. The only segment to decline was credit cards: banks issued 2.7% fewer cards than a year earlier, while the value of credit card limits fell by 1.0%.
In the first quarter of 2026 as a whole, the lending market also remained clearly above last year’s levels. Compared with the first quarter of 2025, banks and credit unions granted 47.8% more housing loans, 27.9% more instalment loans and 5.7% more cash loans. In value terms, mortgage lending increased by 59.9%, instalment loans by 15.2% and cash loans by 12.3%. Credit cards again stood out negatively, with the number of issued cards down 5.9% and the value of limits lower by 0.9%.
Mortgage lending reaches a new historic high
The strongest growth was recorded in the mortgage market. In March 2026, banks granted 59% more housing loans than in March 2025 and 24% more than in February 2026. The value of new mortgage lending rose by 72.2% year on year and by 26.5% month on month.
The total value of housing loans granted in March exceeded PLN 13.34 billion, surpassing the previous record from October 2025 by PLN 2.45 billion, or 22.5%. The average mortgage amount also reached a historic high, standing at PLN 464,450, which was 8.3% higher than a year earlier.
According to Dr Waldemar Rogowski, chief analyst at BIK Group, the main reason for such strong activity in the mortgage segment was the improvement in borrowers’ creditworthiness. This was supported by interest rate cuts, with rates falling in March to 3.75%, the lowest level in four years. Wage growth also continued, both in nominal and real terms, with salaries up 6.6% year on year in March 2026.
Lower interest rates and higher incomes have not only encouraged new mortgage borrowing but have also accelerated decisions to refinance existing loans. Many earlier mortgages were based on periodically fixed rates that are now higher than current market conditions. Refinancing currently accounts for around 30% of new mortgage lending.
Rogowski also pointed to geopolitical uncertainty linked to the situation in the Middle East as an additional factor stimulating interest in mortgage loans. If the conflict were to continue, it could fuel inflation, potentially leading to higher interest rates and rising property prices.
Instalment loans continue their upward trend
March data also confirmed the growth trend in the instalment loan market. Compared with the first quarter of 2025, demand for this type of financing clearly increased. At the same time, the average instalment loan amount declined by 5.8% year on year to PLN 2,249.
BIK links the revival in instalment lending to improving consumer sentiment, wage growth and a favourable labour market. Although salary growth is no longer as strong as in previous years, it still supports household budgets. Lower interest rates compared with a year earlier also leave more room for consumers to take on additional liabilities, including among borrowers already repaying other loans.
Another factor supporting demand is the continued popularity of instalment loans offered with a 0% annual percentage rate. The segment may also be benefiting indirectly from the strong mortgage market, as buyers of newly purchased properties often finance home appliances and electronics through instalment loans.
However, BIK warns that rising uncertainty related to a possible escalation of the Middle East conflict could weigh on demand in the coming months. A prolonged conflict could increase inflation while slowing economic activity, reducing consumers’ willingness to take on new credit.
Cash loans grow in both number and value
The cash loan segment also recorded positive annual dynamics in March. The number of cash loans granted increased by 12.3% year on year, while their value rose by 20.6%. The average cash loan amount reached PLN 29,556, up 7.4% compared with March 2025.
According to BIK, cash loans are increasingly being taken out for higher amounts, particularly those exceeding PLN 50,000. The average value of a cash loan in March exceeded PLN 29,500, the highest level in history. Rogowski said there is a strong probability that the average will exceed PLN 30,000 in the coming months.
The increase in loan amounts is supported by three main factors: longer repayment periods, lower interest rates on new loans following rate cuts, and real wage growth. These conditions are also encouraging borrowers to consolidate existing debt. Loan consolidation is now the main driver of the cash loan market and already accounts for nearly 60% of the value of cash loans granted.
Loan repayment quality remains safe
Despite the expansion in lending, BIK assesses the quality of bank loan repayments as remaining at a safe level. In monthly terms, the March readings improved across all four Quality Indices, with the strongest improvements recorded for credit cards and housing loans.
On an annual basis, the Quality Indices for instalment loans, cash loans and credit cards deteriorated, but they still remain within a safe range, indicating low credit risk. The only product category to show year-on-year improvement was housing loans.
The March data therefore point to a broad recovery in the Polish credit market, led by a record-breaking mortgage segment. Lower interest rates, rising wages and stronger creditworthiness are supporting demand, while geopolitical uncertainty remains one of the key risks for the coming months.
