Rate on General-Purpose Diákhitel Loans to Rise to 7.99%

Banking

The rate on free-purpose loans offered by state-owned student loan provider Diakhitel will rise from 4.99% to 7.99% from July 1, the Economic Development Ministry said on Thursday, according to a report by state news wire MTI.

The ministry noted that rules in force at present would require the free-purpose loan rate to be raised to 14%, in the context of the current interest rate environment, but the government had decided to maintain interest subsidies of a "significant scale". Rates on the credit could be reduced to 4.99% again after the central bank's key rate falls into the single digits, it added.

Diákhitel's loans for tuition will remain interest free, the ministry said.

Around half of the 200,000 students drawing on Diákhitel credit at present have signed contracts for the free-purpose loans.

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