High interest rates scared the Poles. Record low interest rates on loans

In the latest edition of the InfoKredyt report, the Association of Polish Banks analyzed the credit situation of the Poles. The report shows that customer activity in the credit market is at an all-time low and there is no prospect of a quick improvement. Last year, banks recorded a clear reduction in the interest rate on most loans, with the exception of short-term loans for large enterprises. Interest in deposit products is also declining.

70 percent reduction in mortgage interest

In September of this year, 70.6 percent was provided. less housing loans compared to the previous year, and their cost decreased by as much as 71.3 percent. The average cost of a home loan issued in September was PLN 324.87 thousand. zł and was 2.4 percent. than a year ago. The decrease in interest in mortgage loans, as noted by the authors of the report, is mainly due to a decrease in creditworthiness. This was also affected by the increase in interest rates and the recommendations of the Polish Financial Inspectorate, according to which banks were to tighten the criteria for assessing creditworthiness.

- The collapse of the credit policy of banks, because how else to call more than a 70% drop in interest on mortgage loans, the collapse in the construction industry, which is already announcing the layoffs of more than 100 thousand people. The decline in the standard of living of many Polish families who change the word “expensive” every day for all occasions. For many of us, last time was a crash course in economics and unfortunately proved to be a hard lesson - says Dr. Przemysław Barbrich, Director of Communications and Public Relations of the Association of Polish Banks.

The report shows that household debt to the banking sector at the end of June this year amounted to PLN 737 billion, which is PLN 2 billion less than at the end of last year. Over the first three quarters of this year, the cost of loans issued in installments decreased (-4.9%).

When asked about the purpose of a consumer loan, Poles most often indicate the repair of an apartment (74%), current needs (63%) or the purchase of a car (53%). The authors of the report note that high interest rates and rising inflation do not encourage Poles to take out more loans to pay off previous obligations. Last year, 15% of respondents indicated this purpose of a bank loan. respondents and this year 17 percent. Only 8% plan to take out a loan next year. respondents.

The credit situation of Ukrainians

This year’s InfoKredyt report also analyzed for the first time how Ukrainian citizens function in the Polish credit market. The value of the portfolio of loans and advances of Ukrainian citizens living in Poland increased from PLN 1 billion 627 million in December 2018 to PLN 6 billion 340 million in September this year. Home loans have the largest share here, accounting for 77 percent. all loans taken by our eastern neighbors.

InfoKredit is a study prepared by the Association of Polish Banks. The report is based on the results of a survey of social sentiment and consumer demand, conducted in November on behalf of the Association of Polish Banks by the Minds & Roses research agency on a sample of 1,000 adult Poles, representative of gender, age, and place of residence. residence and education, based on the method of online interview (CAWI).