Financial glossary
Our glossary explains 20+ key terms from the Polish credit, banking and savings market. Every entry is grounded in Polish statutes (Consumer Credit Act, Civil Code, KNF recommendations) and includes a concrete numeric example showing the real impact on your wallet.
Every term here is explained in the context of the decisions you take as a consumer in Poland. No textbook definitions — concrete examples, where to find it in a Polish contract, which statute governs it, and how much a misunderstanding costs.
Loans and mortgages
BIK
Biuro Informacji KredytowejThe Polish credit bureau — central register of all loans, payday loans and credit cards held by Polish residents. Banks and licensed lenders are required to query BIK before every credit decision.
Read definition →
DSTI
Debt Service-to-IncomeRatio of monthly debt-service costs to net income. KNF recommends a maximum of 40–50% for mortgages in Poland.
Read definition →
Debt consolidation
Merging several debts into one loan with a single — usually lower — instalment. Reduces monthly burden but typically extends the repayment term.
Read definition →
LTV
Loan-to-ValueRatio of mortgage amount to property value. Poland's KNF caps LTV at 80% (20% down payment) or 90% with low-deposit insurance.
Read definition →
Bank margin
The fixed portion of a variable-rate mortgage above WIBOR — the bank's profit component. Does not change during the loan.
Read definition →
Interest rate
Nominal rateThe annual percentage paid on the borrowed principal. Does not include fees — total cost is captured by RRSO.
Read definition →
Origination fee
ProwizjaOne-off charge for granting a loan — typically 0–8% of the loan amount. Payable upfront or rolled into principal.
Read definition →
APR (Polish RRSO)
Rzeczywista Roczna Stopa OprocentowaniaStatutory Polish indicator showing the total annual cost of a loan as a percentage — includes interest, fees, mandatory insurance and all other obligatory charges.
Read definition →
WIBOR
Warsaw Interbank Offered RateThe reference interest rate at which Polish banks lend to each other on the interbank market. The base for variable-rate mortgages in Poland.
Read definition →
Creditworthiness
The bank's assessment of how much you can safely borrow without default risk — based on income, expenses and existing obligations.
Read definition →
Banking
BFG
Bankowy Fundusz GwarancyjnyPolish institution guaranteeing deposits up to the equivalent of EUR 100,000 per person per bank.
Read definition →
BLIK
The Polish mobile-payments standard. Single-use 6-digit codes generated in the bank app — for online shops, peer-to-peer transfers and ATM withdrawals.
Read definition →
Savings and investments
Emergency fund
Savings set aside for sudden expenses or income loss. Recommended size: 3–6 months of living costs.
Read definition →
IKE
Indywidualne Konto EmerytalneTax-advantaged savings account: capital gains are Belka-tax-free if withdrawn after age 60. 2026 contribution limit: 26,019 PLN.
Read definition →
Term deposit
Lokata bankowaAgreement with a bank to place funds for a fixed period in exchange for guaranteed interest. BFG-covered up to EUR 100,000.
Read definition →
Belka tax
Polish capital-gains taxPolish flat 19% tax on capital income — interest on deposits, dividends, fund gains, market-trading gains.
Read definition →
Law and regulations
KNF
Komisja Nadzoru FinansowegoPoland's state financial regulator — supervising banks, lenders, insurers, funds and pensions.
Read definition →
KRD
Krajowy Rejestr DługówPolish economic-information bureau that registers any overdue commercial debts — from telecom arrears to unpaid invoices.
Read definition →
Statutory maximum interest
Odsetki maksymalneThe legal cap on interest rates for any loan or credit in Poland — twice the NBP Lombard rate (Civil Code art. 359 §2¹).
Read definition →
Free-credit sanction
Penalty for lenders who breach consumer-credit contract rules — the consumer repays only the principal, without interest or fees.
Read definition →
Consumer bankruptcy
Court procedure allowing an insolvent individual to obtain full or partial debt discharge. Accessible when insolvency did not occur through the debtor's fault.
Read definition →
FAQ
Why a financial glossary?
Polish banks and licensed lenders use technical terms that carry real financial consequences — misreading them can cost tens of thousands of PLN over a lifetime. This glossary explains each term in the context of real decisions: the cost of misunderstanding, where to find it in a contract, how it affects your instalment, which statute governs it.
Are the definitions official?
All definitions are based on Polish statutes (Consumer Credit Act, Civil Code, KNF Recommendations) and on official publications from NBP and UOKiK. Every entry links to related articles in our Knowledge Base.
How often is the glossary updated?
Legal and regulatory definitions are updated on every statutory or KNF change (typically 1–3× per year). Numeric values (rates, limits, tax rates) are refreshed with MPC decisions and new statutes — on average every 1–2 months.
Can I suggest a new term?
Yes. If you encounter a term in a Polish contract that isn't in our glossary, email kontakt@kreddo.pl. New terms are added within 7 business days.