ADVERTISEMENT

Lenders report strong demand for Green Home Program credit

Sustainability

Photo by Fabio Balbi / Shutterstock.com

Hungary's biggest lenders have said demand for credit available in the framework of the Green Home Program of the National Bank of Hungary (MNB) is strong, responding to queries by news agency MTI.

OTP Bank said it has seen "serious interest" for the credit launched in October. It added that a survey of households shows 87% planning to build or buy new homes in the near future want to take out credit, and 71% are interested in preferential green loans for energy-efficient homes.

Erste Bank said its clients have submitted over 200 applications for a combined HUF 4.6 billion in credit in green home credit. The average loan size for the market credit is HUF 30 million and it is HUF 12 mln for the Green Home Program loans, it added.

Members of the Magyar Bankholding tie-up also said demand for green credit is ramping up. Takarékbank clients made applications for HUF 5 bln of the credit in the first month after its launch.

In the framework of the Green Home Program, the central bank is providing 0pc refinancing to lenders for retail loans for new homes with a primary energy consumption threshold of 90 kWh/sqm per year. Interest rates on the loans are capped at 2.5%.

The average interest rate for a new home loan - excluding loans with floating rates set for periods of one year or less - stood at 4.26% in September, the latest MNB data show.

The Green Home Program credit is limited to borrowers who plan to reside in the homes they purchase, excluding property investors.

The initial allocation for the scheme has been set at HUF 200 bln, but MNB deputy governor Mihály Patai said earlier there is a "very good chance" central bank policymakers will continue the program if that amount is used up.

ADVERTISEMENT

Purchasing Managers' Index rises Analysis

Purchasing Managers' Index rises

Lawmakers approve residency permit for digital nomads Parliament

Lawmakers approve residency permit for digital nomads

The strongest move - Morgan Stanley Hungary head and Chess F... Podcasts

The strongest move - Morgan Stanley Hungary head and Chess F...

New Jewish cultural hub opens in Budapest City

New Jewish cultural hub opens in Budapest

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.