According to experts, home loans are up 75% and personal loans up 30% compared to 24 months ago. Interest in borrowing gradually grows, both in terms of home loans and personal loans.

Demand for credit is increasing among the population

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home loans are growing at an unprecedented pace, and personal loans also peaked this year. This analysis was read in a new online statistical survey by financial experts. This year, the reporting credit institution was assessed a personal loan offer of HUF 1.3 million, which represents a 10% improvement over the previous year. Compared to 2015, it outperformed by 30%. The average value of home loans is similar to 2016, but 75% higher than 2015

In 2016, the retail credit market grew at an unprecedented rate. The change in the right direction is due to:

• Highly falling interest rates.

Let’s look at an example!

In the summer of 2012, we obtained home loans at an average interest rate of nearly 11%. In 2019, the same is 4.46%. A decrease in interest means one

  • For a home loan maturing in 20 years, we now receive HUF 13 million for a monthly repayment of HUF 83,000,
  • instead of the 8 million 5 years ago, which was also available for $ 83,000 a month in repayments.

Some thoughts from the expert’s opinion

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The increase in the average loan amount for personal loans indicates that the income of the population has increased, and the desire to lend again. The 75% increase in mortgage lending was also supported by the rise in property prices and the appearance of subsidized loans. eg. the Family Home Creation Discount, a consumer friendly loan, and Csok 10 + 10 also contributed.

Personal loan allocations in 2019 increased 400% year-over-year. Home loan calculations increased by 480%.

The expert is of the opinion that the fact that everyone knows what credit they have when they know their credit supply plays a role in their significant growth.

Before applying for a loan, compare the terms of the loans

Before applying for a loan, compare the terms of the loans

  • Because large differences in bank offerings can be discovered. And for personal loans and home loans, there are millions of differences between the offers of credit institutions.
  • The best personalized home and free use loan facility is not necessarily provided by our own bank!

According to the central bank base rate, new housing loans rose by 38% this year, an increase of HUF 297 billion compared to the previous year. Personal loans also increased by 51% to $ 142 billion.

And let’s see the built-in restrictions that no one should be afraid of over-indebtedness. Despite significant growth, over-lending is regulated by constraints. The most important of these is the “proportional installment payment”. The barrier that prevents anyone from paying more than 50% of their income. The exception is a very well-earning client whose monthly income is over HUF 400,000, who can expect a higher limit of up to 60%. Credit market experts are positive about these limits, which protect borrowers from the risk of over-lending.