Loans 2009 | Bank Credit | Payday Loans

In the last weeks of the year, the credit market showed very strong movements and a lot of interesting things happened or were revealed in December. It would be worth collecting them and giving a brief overview of what has happened so far in the last month of the year. Criticism at

The most important credit market change is the passing of the APRC Act


This will have the strongest impact on the credit score of the fast-growing mortgage in the Hungarian lending market, as the APR has achieved astronomical amounts for these personal loans. Interestingly, the disadvantaged victims of usury in small villages have long been the subject of much media coverage, while no one has been concerned with companies offering instant mortgages at over 400%.

Fortunately – and, of course, very unfortunately – those who were unable to pay the 400% interest payment blown up because of the economic crisis, blasting their case, which reacted to it. Moreover, on a parliamentary day devoted to the amendment of the financial laws, the Parliament declared in law that the interest on any loan may not exceed ten times the prevailing central bank base rate. Unfortunately, the MSZP has accepted the condition that a person can borrow at any rate up to HUF 250,000 a year – that is, in the most preferred loan structure, there is still the possibility of the lender paying any interest on it. We will see what the future brings and how the law will work.

Another important part of the bill is the changes to better protect debtors

Another important part of the bill is the changes to better protect debtors


Here, too, is the point where the debtor can change his mind and get out of the loan for two weeks after the loan is disbursed. However, it will be a big change that credit intermediaries will be required to disclose some minimum information about the loan they are offering. Financial institutions can then charge an additional interest of up to 2% if someone chooses to prepay their borrowings. So far, the early repayment penalty could have been up to 8%.

Students are affected by the decline in student loan interest rates. It is unfortunate that this may be news, but it must be borne in mind that student loan has long been not what it was. The loan was a low-interest personal loan, with very special conditions, the essence of which was that everyone would have access to the student loan, and then everyone could repay it. Compared to the original idea, today the student loan interest rate is higher than the central bank base rate, and the smallest installment is so low that a person who has borrowed the maximum loan for several years and is now earning a minimum wage after school will never be able to repay the loan.

This is because the annual increase in the loan portfolio is more than what the employee declared for the minimum wage will repay. That is, the student loan portfolio is growing, and eventually, when the retirement age is reached, the state writes off the loan.

Finally, there is a current issue: according to surveys

Finally, there is a current issue: according to surveys


The public is spending less on gift this year than last year. Fewer people are given gifts, distant relatives or close friends are left out. The saddest statistic, however, is that 12% of the loan was bought last year, but 24% this year.

This means that one in four people will go into debt to buy gifts for their relatives and friends this year. What taste will the holiday, the gift, have, if the giver knows that his gesture has made him indebted for years?

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