These are the cheapest HUF 2 million personal loans in May (X)

The popularity of the personal loan without property collateral has not faded in the recent period. However, it does not matter at all which bank we choose: in the case of a HUF 2 million loan, we can save up to HUF 532,000 in repayment over 7 years with a good choice.

Personal loans are still very popular in Hungary, this is also supported by the MNB’s statistics, since in March 2023 HUF 42.7 billion were disbursed from the most popular unsecured loan.

Why are personal loans popular?

The question may rightly arise, why are personal loans still so popular in our country? We can list several arguments in favor of the construction.

Most personal loans are for free use, i.e. a we can spend the amount received freelycan be used to renovate our home, to replace a broken home appliance or to buy a used car.

The short turnaround time can also be an important aspect during the choice. In many cases, we find ourselves in a forced situation due to some unexpected event, and if we do not have enough of our own savings, taking out a loan can be the only solution. In this situation it is time factor is essential, and here the money can be in our account within a few, 2-3 days from the submission of the request. (Just for comparison, the appraisal time for mortgage loans can take 4-6 weeks, followed by the disbursement time.)

This significant time difference is due to the fact that the personal loan no real estate collateral is required, which shortens the evaluation time. Based on these, the scheme can be a good choice even if you don’t have real estate, or if you do, but don’t want to offer it as collateral for a loan. In return, of course, the interest rate on unsecured loans is usually higher than in the case of mortgage loans.

Of course, applying for a personal loan is not only a good decision in urgent cases. By taking out a loan, we can even prepare in advance for a major expense: if, for example, we are planning to buy a car, we can easily miss out on a good offer if we do not have the purchase price at the given time. The difference between the installments is significant

However, it does not matter at all where we apply for the personal loan, as there can be significant differences between individual bank offers.

Based on Bankmonitor’s calculator, a the installment of the cheapest loan can currently be up to 15 percent more favorableas the monthly amount to be paid for the most expensive loan.

But what does this mean? Let’s say that a family wants a HUF 2 million personal loan with a 7-year term, and the debtor’s certified income is HUF 500,000 net.

Based on Bankmonitor’s recent calculation, in this case the monthly installment of the cheapest offer would be HUF 36,969, while the most expensive would be HUF 43,132. According to this, with the right choice, more than HUF 6,000 per month, In 7 years, you can save a total of HUF 532,769 in terms of repayment.

What is the cheapest personal loan at the moment?

But what are the cheapest offers, which bank should you contact if you want a personal loan? Let’s stick to the example of the previous HUF 2 million personal loan.

THE UniCredit Bank’s Fixed Interest personal loan is the cheapestwhich APR is 14.41%. The monthly installment of the loan is HUF 36,969, which must be paid from the bank account, so the bank account must be maintained during the entire term of the loan. In 7 years, a total of HUF 3,105,342 must be repaid to the bank. This is followed by the offer of CIB Bank, MBH Bank, Raiffeisen Bank and Erste Bank. Even among the cheapest loans, the difference is substantial: the APR of the fifth offer in a row, for example, is more than 2% higher than the first.

It is not only the interest on loans that is important

In addition to the interest rate, other aspects should also be taken into account. For example, the size of the required loan amount can also be important. Only two financial institutions offer personal loans above HUF 10 million. However, among these, UniCredit Bank is still the most favorable offer. At the same time, a minimum monthly net income of HUF 600,000 is required for the exceptionally high HUF 10-12 million loan amount at the financial institution.

Perhaps even more important are the differences inherent in the assessment practices of the banks. It is easy to imagine that we receive the requested loan amount at one financial institution, while the other bank rejects our application. That’s why you have to find the bank that best suits your needs and finances your loan request in the cheapest way.

The information contained in this article is not comprehensive. The comparison and ranking of the personal loans provided by the individual financial institutions was made solely on the basis of the criteria highlighted in the article, you can find out more detailed conditions of the individual loans at the financial institutions.