Q & A about quick loans
Life can be a challenge for us at any time, but fortunately there is a quick solution to financial challenges. Nowadays, this can be solved in hours, but we think it’s worth spending more time on the question and keeping up to date with current offers. With proper care, we can save up to hundreds of thousands of ourselves this time. You can still receive money within 24-72 hours from the start of the process, provided you have all the necessary documentation, so be aware of the terms and conditions in advance.
How much can I borrow?
We recommend that you always add money according to your situation. In some cases, this can cost up to 8-10 million HUF, which can even be done with a personal loan.
How much does a personal loan cost? Depending on your bank, maturity and amount borrowed, you will have different interest rates and APRs. Some banks may require a personal loan with an APR of 8%, which could mean a monthly installment of nearly HUF 32,000 for a 1 million HUF loan.
Can you borrow a personal loan as a KATA? Yes. Although some banks deal only with KATA entrepreneurs, they still have up to 40% of our monthly income on our monthly repayments. Applying requires a certificate of income from NAV, which will account for 60% of our annual invoiced revenue. It is important to keep in mind that these banks will only be able to deal with the applicant if at least one complete business year has been closed.
Is this the case as an DVA?
Banks cannot interpret income from simplified business tax (DVA), so unfortunately they cannot lend personal loans to entrepreneurs working in this form.
I work abroad but would like to take out a personal loan. Possible? Yes, though not easy. Banks do not treat foreign income in the same way and usually require a minimum of 3-12 months of employment proof from the claimant, so in such cases it is worth asking the banks first about the terms.
Is Personal Loan Risky? It’s just as risky as any other loan. It is up to us to assess our own performance and it is worth borrowing accordingly. Interest rate risk can now be easily avoided with fixed rate loans.
How Many Personal Loans Have We Borrowed? In 2018, households borrowed HUF 450-600 billion in personal loans (mainly in the freelance version), which reached a record level. We looked at the crucial benefits of personal loans, even mortgage loans.
Benefits of a personal loan over mortgages
For a personal loan with little administration or administration, the loan amount can be several hundred thousand or 10 million HUF. No real estate coverage required. Applying for a loan costs a couple of tens of thousands of forints, as opposed to mortgages, where you have to prepay for 100-150 thousand for valuation, mortgage registration and notarial deed. Banks may advertise promotions and release these costs if you are not urgent about borrowing, or even expect such an opportunity. The personal loan is in the account within a few days of presenting the required documentation, most financial institutions only need a NAV income certificate or employer certificate. However, in the case of a mortgage loan, it may take up to 30-60 days to complete the administration.
Active or passive status? How does one get on the negative list on the KHR list?
Before you take out a personal loan, it’s a good idea to find out, so it’s important to be aware of how to get into a negative BAR list. As an individual, we become bad debtors if we continue to be overdue for more than 90 days. Not only can you default or fail to pay a loan or previous personal loan, but you may also be listed if you enter incorrect bank information or use a credit card when entering into a contract. We are called active BAR listers as long as we have a debt, or until the bank rescheduls our loan or, ultimately, sells the mortgage.
We then call these clients passive BAR listers. Prior to 2005, it was not mandatory for banks to notify a customer that they had entered a negative BAR. This omission may have contributed to the fact that many were surprised to hear that they were registered as BAR-listers and that the bank was therefore refusing their application. Today, financial institutions are required to inform their clients of the existence of a KHR list when accepting a credit application and entering into a contract, and to notify them 30 days in advance of their status as an active bar for troubled debtors.
The price differential between mortgage and personal loans has been declining in recent years. For comparison purposes, it is worth considering the APR because the APR includes the total cost of the loan. 7 years ago, the APR on new personal loans was on average 31%, compared with only 14% in the third quarter of last year. Calculators available on the market currently estimate that approx. With the APR of 8%, you can get the cheapest personal loan, so the APR of the cheapest mortgage is 5-6% – so it’s safe to say that the price difference has narrowed significantly in the last period.
The difference in the APR between an average 10 million home loan with a term of 20 years and a free-standing mortgage with the same terms can be up to 1.5% in favor of the former. Always be aware in advance before taking on debt so we can make the best decision!