According to research carried out among pregnant mothers, 80% of expectant mothers plan to use the Babysitter officially starting on July 1st. Most of the respondents would like to apply for a maximum of HUF 10 million if they meet the conditions. A study of 300 people shows that 80% of pregnant women between the ages of 18 and 40 would be in need of baby-sitting support and find it very useful. Young people who are expecting a child but are not married get married because they can meet the legal requirement.
Apply for a maximum interest-subsidized loan
Nearly 93% of those surveyed would like to apply for a maximum interest-subsidized loan of HUF 10 million, but according to experts, only 60% of them would qualify for a baby loan due to legal requirements, banks’ risk management and credit assessment requirements.
The statutory conditions for a baby loan are:
- The wife must be between the ages of 18 and 41,
- you must have a Hungarian address,
- none of them can be listed as negative debtors on the KHR list,
- no member of the couple may have public debt,
- they must have a criminal record,
- at least one member of the couple must have at least 3 years of continuous TB insurance,
- and any member of the couple must be the first to marry.
Ask their credit broker prior to borrowing to avoid pitfalls
Although the government decree specifies who is eligible to apply for an interest-subsidized loan, in addition to legal requirements, banks must also meet the requirements for individual risk management and credit assessment. There are currently differences in the terms and conditions for accepting credit institutions, so couples may want to ask their credit broker prior to borrowing to avoid pitfalls.
Although most married couples want a maximum loan of $ 10 million, they may not be able to claim the full amount. The reason for this is that the Baby Loan is subject to the Income-based Repayment Detail (ABC).
ABC = Monthly Debt Service / Certified Monthly Net Income
Thus, those who have previously taken out a loan or have low verifiable income may be eligible for a smaller loan amount than the HUF 10 million authorized by the government decree. According to surveys, those with an average income who meet all requirements are expected to have access to a $ 7 million loan.
Even though the Baby Waiting Support will be available as of July 1, 2019, there is already a huge interest in banks and credit brokers. The credit market expects excess demand for interest-free loans, which could bring about a strong upswing in the credit market, as 300,000 families are expected to benefit from the Baby Waiting Support by the end of the application deadline (December 31, 2022). In numerical terms, credit institutions will be able to place around $ 1,500-2,000 billion of interest-free loans over the coming years.
Would you like to use the Baby Waiting Loan, are you interested in the details of the village GFIC? Please fill out our form, our credit broker will be looking for you!