The consumer credit market does not seem to have lost its momentum for months: Hungarians are still taking out payday loans as if they were candy. According to George Ford’s recent payday loan interest rate monitor, banks are really attracting banks to open-end loans.
In May, interest in payday loans also declined, according to central bank data: again, we borrowed more than a month earlier: HUF 55.9 billion in May, after $ 48.73. This is a 14.7 percent increase, but the enthusiasm is even more pronounced when compared to the same period last year. Outstanding payday loans increased 27.8 percent compared to May last year.
According to George Ford, one of the reasons for our popularity is the fact that we are able to finance our goals more cheaply with such free-standing payday loans: the APR was still 13.55 percent in April, down 13.28 percent in May from 14.30 percent a year earlier. volt. In the case of a larger loan, this represents a down payment of several thousand forint to those who are borrowing such a loan instead of May last year.
But this summer, according to the specialist portal, we can borrow at a much better rate in practice than the average rate suggests. The payday loan Calculator makes it easy to find out that by satisfying the right conditions, you can find large amounts of loans up to 7% APR.
New product on the market
In addition, credit institutions are not idle in the summer heat. At Raiffeisen Bank, there have been changes in payday loans, with mortgage rates falling from 15.95 percent to 13.95 percent, so it might be worth exploring options for those who are in the process of redeeming their debt.
The financial institution is once again offering new clients a special deal, as we already know: we get a 4 percent discount on the net income of 100,000 forints, so the interest will be 11.95 percent. From HUF 250,000 net, the discount is already 8 percent, if you apply for a loan over HUF 1 million, the interest is 7.95 percent.
Provident has come up with a new product: a payday loan called Monthly Loan, which can be applied for until September 2, with a special interest rate of between HUF 1,200,000 and 1,500,000, with a 3-year maturity. The APR is 7 percent and the loan can be repaid free of charge at any time.
George Ford, however, advises that the level of discounts should not be the decisive factor in any credit decision. For example, with a quick calculation, you might find that you can find $ 1.5 million in interest for up to 6.95 percent for 60 months (7.72% APR), and if you claim through the loan aggregator and don’t miss it, Superbank will credit a monthly installment , which in this case is $ 9,732.
You can get a really good interest at a higher amount, from HUF 7,000,000 with an 84-month maturity: the APR is 6.9 percent, and the repayment installment is fixed at HUF 104,597 at CIB Bank. However, this requires at least a net income of $ 250,000 and its return to the bank.
According to George Ford, it is definitely worth calculating before making the decision, as in the example above, the total repayment will be $ 8,786,148 at the end of the term, and $ 8,985,747 at the next loan in the leaderboard. The difference is 200,000 forints, so choosing a less favorable offer will waste that amount of money on your window, even though it could make for a shorter summer vacation.