One of the strangest items of the population growth subsidies announced in February was the HUF 10 million interest-free loan, the debt of which will be forgiven at birth, 30% for the second child and the total amount for the third. So, in fact, this is also a prepayment allowance if you want more than one child.
What’s extraordinary is that, on the one hand, they wanted to give it to first-time married women first, and that it was a freelance loan that everyone would spend on whatever they wanted.
Now the details have come out
The loan can be applied for from July 1st to the end of 2022, and the wife must be between 18 and 40.99 years. It has a maximum maturity of 20 years, with an interest rate of five years and is free of interest due to State aid until the conditions are met.
It was just not stipulated in the terms that it could only be claimed by a lower middle class living in a city.
Instead, it was written that the claimant should not be on the KHR list (which is fine, why give someone who can’t repay it), at least 3 years of continuous declared employment or college-university study, (a small percentage of the non-urban population works 36 months ), public employment must not be more than one year, both parents must have a criminal record and no public debt.
The employment relationship is continuous if there is no interruption of more than 30 days or a 6-month waiting period after graduating. There shouldn’t be a 30-day break in the last 180 days, if I understand it.
The first marriage is modified so that if there is at least one child
This is the first marriage of a member of the spouse. So only married people can apply for it, in case of divorce (even) the interest subsidy will cease and they will continue to tick as a personal loan, but the interest rate can be 5% plus 5%, currently 8%, but later it will be much more. The same applies to moving abroad.
Even if there is an obvious reason for not having a child, you cannot apply for a loan. This might have ruled out those who already know that they can’t have a child, though I don’t see why they can’t adopt it because it also comes with money. This is the mystery of what the legislator was thinking here.
The loan is paid out by a credit institution and, according to the credit institution, the borrower must be creditworthy. Well, that’s the biggest question mark. With a state guarantee, banks simply do not care to whom they lend money, since the state pays if necessary. This happened before 2008, when insolvent people took out 25 million homes and the bank did not care if it could pay because the state pays instead.
As an unsecured personal loan
Banks typically give only 3-4 times the payment. Will 10 million personal loans require a salary of $ 2.5 million in this case?
Maybe you thought you had to comply with the MNB’s requirement that 40-50% of your income go to maximum loan repayments? This does not make much sense because the law also stipulates that the monthly repayment of this loan may not exceed 50 thousand HUF. However, this is also the minimum wage, which is the minimum condition for a loan. (Why can’t there be more than 50,000 monthly installments? How can everyone just hire them for 20 years? Why is it good for the state or taxpayers?)
We don’t know and we’ll see.
I do not describe the application process, it is included in the linked description. Government window, financial institution, births must be reported, etc.
I wonder how many irresponsible people will take out the loan and then not pay back or have the children they need. I have already written about whether more children will be born on this loan.