Diversified appetite for loans

The data shows that a customer of banks and loan companies living in 11 largest centers is on average twice as indebted as a person from outside these centers. The former must give banks and non-bank institutions an average of 24.5 thousand. PLN, the second – 12.3 thous. zł.

 

Polish population lives in metropolises

Polish population lives in metropolises

it is responsible for over half (52.5%) of the retail credit market including banks and loan companies . At the end of 2018. 11 urban residents were guilty of loans and non-bank loans 330 billion zł, while disclosed in debt BIK individuals across the country amounted to 628 billion zł.

At the other extreme are people living in Opole and surrounding communes. There, the average debt under the credit product is PLN 14.2 thousand. PLN per person.

 

Factors affecting greater debt in agglomerations

Factors affecting greater debt in agglomerations

What is the reason for this varied appetite for loans depending on where you live? There are many reasons. The most important thing is:

  1. earnings
    Agglomeration customers earn more. To put it simply, they have higher creditworthiness.
  2. Costs of living
    Metropolitan residents incur higher living costs than people outside them. This is most evident in the example of real estate prices, which are much higher in the largest cities and surrounding municipalities than in more distant cities. So, to live in your home or apartment located in the agglomeration, you have to spend more than in the provinces.
  3. Shopping incentives
    People from the agglomeration come across messages encouraging them to consume at almost every step. The way they spend their free time looks a bit different. Such people are more likely to visit shopping malls, and there – due to higher income than the inhabitants of the province – they can afford more shopping for credit.
  4. Age
    More people from younger age groups live in major centers. And for various reasons (e.g. small children) they have greater consumption needs.

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