In Polish: Kredyt konsolidacyjny
This is the word you will see in bank documents.
Definition
A consolidation loan (kredyt konsolidacyjny) is a loan from which the bank repays your existing debts, e.g. cash loans, instalment plans and a credit card, so you repay one new instalment. Banks offer it unsecured or with a mortgage. The mortgage version works like a mortgage-secured loan, part of which goes straight to repaying old debts.
What it means for you
Consolidation usually lowers the monthly instalment noticeably, because it combines expensive debts into one cheaper loan and spreads it over a longer term. The total interest, however, often rises, even several times over. It makes sense when your current instalments threaten arrears, or when you put the difference in the instalment towards overpayments.
Full entry in Polish, with a worked example and sources
Frequently asked questions
Is a consolidation loan worth it?
It lowers the instalment but usually raises the total interest, because you repay the debt for longer. It pays off when it protects you from arrears or when you use the difference in the instalment to overpay.
Can a mortgage be consolidated?
Yes. Banks also include mortgages in consolidation, and combining one with other debts then works like refinancing with an extra amount. Terms depend on the bank and the property value.
How is a consolidation loan different from a mortgage-secured loan?
A consolidation loan is used to repay other debts and may be with or without a mortgage. Consolidation with a mortgage works like a mortgage-secured loan from which the bank immediately repays old debts.
Related terms
Definitions are simplified and reflect Polish law and bank practice as of October 2026. Where every word matters, the Act and your loan agreement decide. Figures in examples are indicative and are not a bank offer. The Polish version of each entry has worked examples and sources.
Other terms in “Loan types and programmes”