Thinking of applying for a payday loan? Nowadays, payday loans are fast loans and easy to manage, which is why this is probably one of the most sought after loan types in Hungary. Before you go to your first bank, it’s a good idea to look carefully and choose, as it’s not always the cheapest that is best. Many financial institutions have promotions and discounts, but it is very important to pay attention to the small parts. Your bank may charge you for opening an account or for other operations. It is worth noting that persons on the KHR (BAR) list will not be eligible for a payday loan and will be treated with a passive status for one year after payment of the debt. A payday loan cannot be claimed even during this period. Of course, as everywhere, there are exceptions, there is a financial institution that also gives credit to KHR listers on an individual basis.
Payday loan common questions
Payday loan with and without interest discount
The standard interest rate on payday loans in banks is typically between 11% and 18%, but it is possible to qualify for a significant interest rate reduction. This can happen if you arrive at a bank account with the lending bank on a monthly basis, or you can increase the level of interest rebates by crediting other income, for example if your partner comes here or if you have other income (rent). So the expectation of income and the credit are not necessarily the same.
Occasionally, the bank will give you an additional discount if you use an active account, that is, transfer and transfer to the account. The financial institution does not accept cash deposit or transfer from another bank account as expected credit or active account usage.
The higher the certified income, the higher the bank will accept the repayment amount in accordance with the MNB JTM “income- proportional repayment installment” rules, and the bank will give more discounts if the justified income is higher. In many cases, you get a discount over $ 50,000 and more than $ 250,000.
Now you can borrow up to $ 10 million on a payday loan at a fairly low interest rate of up to 7.77%. That said, it is still almost double the mortgage interest rate, where in many cases the bank will reimburse all or most of the initial costs if the loan agreement is successful. In some cases, the bank credits up to $ 100,000 to your account.
What happens if you do not receive a payroll in a current account? Can you get a loan this way?
Banks are more likely to accept loan applications where salaries are paid into a current account. In the event that you do not receive a payroll in a current account, you should arrive at your chosen bank with proof of income. It is important to note that the loan must be repaid to the bank in a current account, so it is essential to open a current account.
To open a checking account, you need to bring official documents with you to the bank, such as an identity card, address card or, in the case of a pensioner, a pensioner card. Only originals are accepted in the bank, not photocopies.
Who can apply for a payday loan?
- A payday loan can be applied for from the age of 18, but in practice this is usually extended to 22-23 years.
- The debtor cannot reach the age of 72 until the end of the loan (this varies by bank). If the debtor reaches the age specified by the bank, a debtor must be enrolled in the credit transaction if he or she attains the age of 20 at the time of applying for the loan, but does not meet the age specified by the bank until the loan is repaid.
- Employee employment of more than 3 months is required.
- Your monthly verified income must be below the current minimum wage.
- A bank account must be opened and maintained throughout the term.
- KHR (BAR) list is a ground for exclusion.
- You must have a permanent address in Hungary.
Why Choose a payday loan?
It provides a fixed interest rate throughout the term, has minimal terms of application and is quick to administer. Whether you apply for a payday loan in the morning, get tired of the bank branch and sign the application, submit the necessary paperwork (proof of income or bank statement, personal documents, etc.) and call in 1-2 hours to get your credit application approved go) and the amount claimed is already credited to your account.
The loan amount can be used for anything you want, and the bank does not oblige you to make any payments. Of course, there are targeted loan types, such as refurbishment, car purchase, where you get a better interest rate, but you may have lower interest rates on other constructions if you have a higher income, and there is no need to prove your loan purpose, such as a car loan.