One of the most exciting developments in the domestic credit market this year was the launch of consumer-friendly loans .
In the autumn of 2019, the central bank first announced that it was “expecting” domestic banks to provide easier and more secure loans to facilitate access to loans.
What characterizes this type of loan?
In particular, consumer credit must meet the following conditions:
- the interest period is a minimum of 3 years (3, 5 or 10 years) or the structure is fixed until the end of the term.
- the interest rate premium may not be higher than the reference value than 3.5%
- the disbursement fee may not exceed 0.75% of the loan amount, but not more than HUF 150 thousand
- the prepayment fee cannot be higher than 1%, in case of LTP prepayment there must be a free prepayment
- credit assessment deadline up to 15 working days compared to valuation availability, disbursement deadline 2 working days
It wasn’t a day or two before the financial institutions really came up with these offers
But this summer the first swallows have come up. FHB was the first to come out with the MNB-rated product. The difference between new and existing offers was not striking. At the central bank’s announcement, the interest rate on the most favorable market loans ranged from 3.9% to 6.7%, while the interest rate on top-rated consumer loans ranged from 3.6% to 6.0% .
At the end of the year, this segment is a little more busy. Let’s see what you should know about deals called super loans?
Favorable credit products – for the rich
The current news around Good Finance’s house is that, at the end of November, it has discontinued interest rate rebates on consumer loans. Here, this product is only available to a special section of consumers, as it is not available for a total monthly income of 350,000 HUF . It is safe to say that Good Finance has made itself sufficiently secure that it will not be disappointed with the repayment process.
With more stable loans – 3, 5, 10 years and fixed all the time – consumer-friendly products raised their initial interest rates at the end of the year. That is, even if they adhere to strict central bank requirements, they do not want to become too cheap.
As a result , according to analysts, “smooth” market loans for loans with a fixed repayment period of up to 10 years are more favorable than consumer loans.
Conversely, if someone is able to pay higher monthly installments from scratch to keep their credit fixed throughout , they will clearly pay less with a consumer-friendly loan than with floating-rate versions.