The purpose of the Baby Waiting Loan is to increase the population. The loan agreement may be concluded from 1 July 2019 to 31 December 2022. The maximum amount of the loan is HUF 10 million, it can be disbursed only in one amount. If you were to use the Baby Waiting Loan, they would have to meet not only the statutory requirements but also the bank’s internal rules.
The Baby Waiting Loan does not require real estate collateral, but it is safer than a personal loan because of a state guarantee. Banks do not yet have precise information on the terms and conditions, but it is likely that general borrowing requirements will have to be met by those who wish to obtain assistance.
Baby Loans – What Banking Rules Do I Have to Meet?
General borrowing requirements that must be met:
- legal capacity
- type and length of employment
- the amount of certified income
- payment history of existing loans
- active bank account usage
The exact terms and conditions may vary from credit institution to bank, so you may want to consult several banks before using the Baby Waiting Loan.
The maximum payload of income is also regulated by law. The payment obligations of existing loans should also be taken into account and, in the case of credit lines, 5% of the credit amount is always considered a payment obligation, regardless of how much money is actually spent.
In the case of a home loan, the repayment installment may not be higher than 25% of the monthly net salary, below the income of 400 thousand HUF, and in case of income above 30%. And for mortgages with a fixed repayment period of five to ten years, the limits are 35% and 40%, respectively. The 50 and 60% limits apply only to fixed mortgage loans for a minimum period of ten years or until the end of the term. The decree will change from July 1, 2019, it will allow 500 thousand HUF monthly income instead of the current 400 thousand HUF.
In the case of unsecured personal loans
If the borrowers have a certified monthly net income of less than 400,000 HUF, the combined installment of the existing and the new loan may not exceed 50% of the certified income, and 60% in the case of income exceeding 400,000 HUF patients. Income and debt are to be treated in a consolidated manner for several co-debtors.
It is not yet known which category of Baby Waiting Loan will fall into or may be given a separate rating. They may also accept different types of income to different degrees. It is not even known exactly who has a credible income in the credit assessment, ie who can get involved as a debtor.