In Polish: Nadpłata kredytu
This is the word you will see in bank documents.
Definition
An overpayment (nadpłata kredytu) is a payment above the scheduled instalment that immediately reduces the capital to be repaid. After an overpayment you choose whether to shorten the loan term or lower the instalment. The right to overpay at any time is given by the Polish Mortgage Credit Act.
What it means for you
Every złoty you overpay lowers interest until the end of the loan, and overpaying early in the term gives the most. Shortening the term saves several times more than lowering the instalment, but a lower instalment raises creditworthiness and gives slack in your budget. With a variable rate the bank may charge a fee only in the first 36 months, and at most 3% of the overpayment.
Full entry in Polish, with a worked example and sources
Frequently asked questions
Which pays off more: shortening the term or lowering the instalment?
Shortening the term. In an example of PLN 500,000 over 30 years at 6%, overpaying PLN 50,000 after 3 years cuts interest by about PLN 161,000 when shortening the term and by about PLN 51,000 when lowering the instalment.
Can the bank charge a fee for overpaying?
With a variable rate only within 36 months of signing, if the agreement provides for it, and at most 3% of the amount overpaid. With a fixed rate, during the fixed period, on the terms of the agreement.
When is the best time to overpay?
As early as possible, because the balance and interest are highest at the start. PLN 10,000 overpaid after one year cuts interest several times more than the same amount after 20 years.
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”