40,000 take out HUF 140 billion in ‘friendly’ personal loans

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

The MNB said that about a quarter of new personal loan spending 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 average rate of 14.5% for similar non-certified products.

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

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

Since July 2021, banks must provide fully digital application procedures; in April 2022, 38% of new spending was on digital apps.

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