40,000 take out HUF 140 bln in 'consumer-friendly' personal loans

Banking

Photo by Shutterstock.com

Nearly 40,000 customers have signed contracts for HUF 140 billion of fixed-rate personal loans certified "consumer-friendly" by the National Bank of Hungary (MNB), the central bank said on its website.

The MNB said around a quarter of new personal loan outlays can be considered consumer-friendly, but in some financial institutions, the rate is as high as 35-45%.

On average, the rates are 1.3 percentage points lower than the 14.5% average rate for similar non-certified products.

Customers also sign for around double the amount, HUF 4.1 million, for certified products and on longer maturities that average 6.7 years.

The MNB said six banks offer certified consumer-friendly personal loans.

Since July 2021, banks have to provide fully digital application procedures; by April 2022, 38% of new outlays were for digital applications.

ADVERTISEMENT

Sharp Rise in Energy Costs Putting Strain on Competitiveness Analysis

Sharp Rise in Energy Costs Putting Strain on Competitiveness

Parl't approves 2023 budget Parliament

Parl't approves 2023 budget

Danubius Hotels Appoints Group Director of Development Appointments

Danubius Hotels Appoints Group Director of Development

3 Downtown Districts Planning to Introduce 30 km/h Speed Lim... City

3 Downtown Districts Planning to Introduce 30 km/h Speed Lim...

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.