New personal loans reach ten-year peak in Hungary

Deals

pixabay

Banks disbursed new personal loans worth HUF 111 billion in Hungary in the first five months of this year, up 48% from the same period in 2016 and the highest January-May figure since 2007, BankRacio.hu told MTI today.

Péter Gergely of BankRacio.hu said interest rates on personal loans are now far lower due to the more attractive interest environment than they were five years ago. Some of the personal loans on offer at the moment have a one-digit annual percentage rate (APR), which was inconceivable a few years earlier, he added. The market for personal loans is also boosted by higher real wages and the more stable financial position of households, he said. 

BankRacio.hu said it expects the dynamic increase to continue, adding that borrowers are likely to take a better look around before choosing a lender, which could boost competition among the banks.

ADVERTISEMENT

Equilor analysts forecast 4.5% GDP growth for 2022 Analysis

Equilor analysts forecast 4.5% GDP growth for 2022

Márki-Zay tests positive for COVID-19 Elections

Márki-Zay tests positive for COVID-19

New leasing and sales director at Horizon Development Appointments

New leasing and sales director at Horizon Development

Gov't calls for technical screening of László Papp Arena City

Gov't calls for technical screening of László Papp Arena

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.