Hungarians like the interest discount, the banks are optimistic!

Hungarians’ borrowing mood remains unchanged, with borrowing at its peak. Market and home loan contracts are also on the rise, thanks to rising wages and consistently low interest rates.

In Hungary, the population continues to take out loans and it is not yet clear when growth will slow down. The rise in real wages and the low interest rate environment are what are attractive in borrowing.

  • The interest in borrowing for housing loans started after the crisis, and even the recovery of consumer loans is continuing.

Let’s see how much we lend and for what purpose?

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How much is the loan taken out?

According to the data of the GFI, the loan portfolio of individuals increased by 3% a year. Its total value was USD 5,547 billion, mostly comprised of home loans and personal loans in 2017.

  • New home loans amounted to nearly USD 600 billion, an increase of 37% compared to the previous year. Demand for housing is unbroken.
  • The volume of personal loans increased by 50% compared to the previous year. Smaller personal loans are popular. They represent 10% of the total retail loan portfolio, which amounted to USD 571 billion.
  • In terms of size, the volume of outsourcing has increased at an unprecedented rate. At the end of 2018, it was more than USD 120 billion.

“According to the latest statistics released today, retail lending has increased by 42% compared to a year earlier, and within this, personal loans have increased by 51%,” the GFI said.

What did we get a personal loan for?

What did we get a personal loan for?

According to the data of the GFI, the monthly current expenditure of an average Hungarian family increased by 7.6% compared to the previous year, which was USD 83 thousand per month in 2017.

  • Food price 22,000, – Ft
  • Utilities average 17,000, – Ft
  • Transportation 10,000, – Ft
  • Housing 19.000, – Ft

It turns out that we are okay with our monthly running expenses, but paying an unexpected higher amount would be a problem, and even our savings would not cover it. When looking at a vacation or even a home remodeling, they usually run out of expenses.

According to GFI research, in 2017, 17% of the population planned a home renovation and 28% planned a vacation. 46% of the respondents over-spent on home renovation, 38% on vacation.

When buying a car, a significant part of the respondents buy their own car, 30% and 10% of them have to buy a car at the cost of a personal loan.

With the December holidays we spend more than average, 5% of the population also needs a loan, personal loans are available!

Here are the most popular types of loans:

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  • Consumer loans have become increasingly important in our budgets as our annual spending continues!
  • Over the past 9 months, households have borrowed $ 342.7 billion.

The terms of the admission are easy to complete – you do not need a surety or collateral, and you will often receive the amount you want within one hour. Interest rates are also quite favorable and cheaper than overdrafts, costing about half. According to GFI data, the average interest rate on personal loans was 12% in September 2018, which is cheaper than the current loan portfolio!

All the information about a new family home improvement discount and home loans are available in one place upon request. We answer individual cases, explore the most important practical issues, and help adjust to the new GFI.

Call our credit broker, fill out the form and we will call you back!