Published: December 10 2023
As the holiday season approaches, it's important to carefully consider our spending. If we don't have any savings but have a stable income, a small, freely usable loan can be a helpful option for covering expenses. In this article, we will explore the different loan amounts available in Budapest and the associated monthly repayments, focusing on loans of 400,000, 500,000, and 1,000,000 Hungarian Forints.
Loan options for different income levels
Banks offer personal loans that can be used for any purpose, and the application process can be done online or even through a mobile phone. The loan amount is determined based on the borrower's income, which can be a salary, business revenue, or pension. We looked into the loan options available for individuals earning at least the minimum wage and those with higher incomes.
Monthly repayments and total repayment amounts
For a 400,000 HUF loan with a 24-month repayment period, individuals earning at least the minimum wage can expect a monthly repayment of around 20,000-21,000 HUF. The total repayment amounts vary between banks, with CIB offering a lower total repayment than Cetelem. Individuals earning a net income of at least 250,000 HUF can benefit from a lower interest rate and monthly repayments through Cetelem or a more favorable offer from Cofidis for a shorter repayment period.
For a 500,000 HUF loan, borrowers have more options to choose from. The monthly repayments range from 25,000 to 27,000 HUF, and the total repayment amounts vary between 592,000 and 646,000 HUF. The two most favorable offers come from MBH and CIB, with a difference of only 200 HUF in monthly repayments.
Individuals with a net income of at least 350,000 HUF can access the same loan conditions as those earning 251,000 HUF. However, CIB remains the most favorable option, with a slightly higher monthly repayment compared to MBH.
Larger loan amounts
For a 1,000,000 HUF loan, the monthly repayments range from 29,000 to 33,000 HUF, and the total repayment amounts range from 1,400,000 to 1,600,000 HUF. Cofidis offers a shorter repayment period and higher monthly repayments for this loan amount.
For individuals earning a net income of at least 250,000 HUF, there are seven favorable loan offers available, with interest rates ranging from 15.61% to 29.06%. This results in a difference of nearly 6,000 HUF in monthly repayments and a total repayment difference of 282,000 HUF.
For those with a net income of at least 350,000 HUF, CIB remains the most favorable option for a four-year repayment period, with a monthly repayment of 27,600 HUF. However, MBH and Raiffeisen offer cheaper loans for individuals with this income level, with monthly repayments that are 500 HUF and 2,000 HUF lower, respectively, compared to those earning 100,000 HUF less.
Choosing the right loan amount for the holidays can provide the necessary financial support for various expenses. By considering the different loan options available in Budapest and understanding the associated monthly repayments and total repayment amounts, individuals can make an informed decision that best suits their financial situation.
Questions & Answers
What is the purpose of the census in Hungary? The census in Hungary is conducted to gather demographic data and information about the population of the country. It helps in understanding the social, economic, and cultural characteristics of the people living in Hungary.
How often does the census take place in Hungary? The census takes place every ten years since 1870.
Who was supposed to participate in the 2022 Census in Hungary? Every long-term resident of Hungary, both Hungarian citizens and foreign nationals, who have been living in Hungary for at least 3 months as of 1 October 2022.
What is the minimum income required to apply for a loan in Budapest? The minimum income required to apply for a loan in Budapest depends on the specific bank and loan product. Different banks may have different income requirements for loan applicants.
Can I apply for a loan online in Hungary? Yes, it is possible to apply for a loan online in Hungary. Many banks offer online loan application processes, allowing individuals to apply for loans conveniently from their homes or using their mobile phones.
How long does it take for a loan to be disbursed in Hungary? The time taken for a loan to be disbursed in Hungary may vary depending on the bank and the specific loan product. In some cases, loans can be disbursed within 1-3 days after the application is approved.
Is it necessary to visit the bank in person to apply for a loan in Hungary? No, it is not necessary to visit the bank in person to apply for a loan in Hungary. Many banks offer online loan application processes, eliminating the need for physical visits to the bank's branch.
What income sources are accepted for loan applications in Hungary? Banks in Hungary typically accept various income sources for loan applications, including salaries/wages, self-employment income, and pension income. The specific income sources accepted may vary depending on the bank and loan product.
What factors should be considered when choosing a loan amount in Budapest? When choosing a loan amount in Budapest, it is important to consider factors such as the purpose of the loan, one's income and ability to repay the loan, the interest rates and fees associated with the loan, and the loan repayment term. It is advisable to assess one's financial situation and needs carefully before deciding on a loan amount.
What is the total amount to be repaid for different loan amounts in Hungary? The total amount to be repaid for different loan amounts in Hungary will depend on factors such as the interest rate, fees, and the loan repayment term. The specific amounts can vary between different banks and loan products. It is recommended to use loan calculators or consult with banks to get accurate information on total repayment amounts for specific loan amounts.
Can loan offers vary based on income level in Hungary? Yes, loan offers in Hungary can vary based on income levels. Some banks may offer different interest rates or loan terms depending on the borrower's income level. It is advisable to compare loan offers from different banks to find the best option based on one's income and repayment ability.
Are there any special offers or promotions for loans in Hungary? Some banks in Hungary may offer special promotions or discounts for loans, such as lower interest rates or reduced fees. It is recommended to check with individual banks or financial institutions to inquire about any ongoing promotions or special offers for loans.