In Polish: Kapitał kredytu
This is the word you will see in bank documents.
Definition
Loan capital (kapitał) is the amount you borrow from the bank, without interest and other costs. You repay it through the capital parts of your instalments, and the bank charges interest on the capital still to be repaid. The capital outstanding at a given moment is the loan balance.
What it means for you
The faster you repay capital, the less interest you pay. With equal instalments you repay very little of it at first, so after a few years the debt is higher than intuition suggests. Every overpayment goes entirely to capital and lowers interest until the end of the loan.
Full entry in Polish, with a worked example and sources
Frequently asked questions
What is loan capital?
The amount borrowed from the bank, without interest and costs. You repay it through the capital parts of instalments, and the bank charges interest on the remaining capital.
Why does the capital fall so slowly?
With equal instalments, at first most of the instalment is interest on a high balance. For PLN 500,000 over 30 years at 6%, only PLN 498 of the first PLN 2,998 instalment goes to capital.
Does an overpayment go to capital?
Yes. The bank first settles interest accrued up to the payment date and credits the rest to capital. Remember to submit an overpayment instruction, not just pay in money.
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 “Repayment, overpayment and changes”