Hungarians' propensity to borrow recovers to pre-crisis levels

Banking

About 11% of Hungarians plan to take out a loan in the coming year, state news wire MTI reports, citing research by consumer credit company Cofidis Magyarország.

The rate has returned to levels last seen in April 2019, Cofidis said.

Around 41% of Hungarians weighing loan applications said they would use the credit to buy a home, 40% would put it toward home renovation and 33% would buy a car.

Nearly all of the respondents who had heard about the National Bank of Hungary's recently launched "consumer-friendly" personal loan certification said they would take the central bank's seal of approval into consideration when deciding on borrowing.

About 24% of respondents said they had taken out credit in the past year, down from 31% before the pandemic.

Jean-Francois Remy, who heads the local branch of Cofidis, said Hungarian households' caution during the crisis "appears to be abating" which augurs a pickup in borrowing, supported by an improvement in their expectations regarding financial positions, too.

The Cofidis Credit Monitor was prepared using a representative survey of 500 Hungarian internet users between the ages of 18 and 69.

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