10 Million Loans Without Income Testing And Credit Review? The interest-free, free-of-charge loan of up to HUF 10 million can be borrowed from July 2019, without credit assessment, until the end of 2022.
With the exception of those who are KHR negative records, everyone is eligible for a new interest-free childbearing loan that meets the conditions set by the state and does not include an income test. In the last days or weeks, it has been known that only women who live in their first marriage will be eligible, but it has been changed later to allow men to have spousal support for spouses and ignore the fact that both spouses have previously divorced if they had not had a child before then.
Up to $ 10 million in interest-free
Overdraft facilities will be available from July 2019. If at least one child is born within 5 years of enrollment, the loan may still be repaid free of interest, but the repayment shall be suspended for a period of 3 years. When the second child is born, the repayment obligation is suspended for a further 3 years, plus 30% of the capital debt.
When the third child is born
The remainder of the loan will be released in full. However, it is important to note that if there is no child born within 5 years of enrollment, the facility would be “borrowed” at market rates and should be repaid with the interest subsidy. If there is no child born out of the fault of the spouses, such as infertility, the district office may impose lighter repayment conditions than the market.
It should be noted, however, that this is preliminary news, the letter of the law is not yet available. Why is this important? There are voices in the banking sector saying that a family-friendly move could upset the domestic financial culture, which is already on a solid footing, and even lead to the need for public funds, ie joint funds, to guarantee contracts without credit assessment. For the time being, it seems quite unrealistic for someone to walk into a bank branch, verify themselves and their age and marriage, ask the bank if they are active on the BAR list, and then get the $ 10 million. Banks will probably only comment if at least the bill comes out.
It is also worth noting that since the crisis
Many steps have been taken to ensure responsible borrowing, even last fall, debt brake rules were in place: one of the obvious lessons of the recent crisis was that if you take a repayment installment just right even with a slight deterioration, you can easily get caught in a debt trap.
Personal loan as self-sufficiency? It is inconsistent with the spirit of responsible lending to bring in the home equity you need from another, mostly unsecured, personal loan. Recently, the central bank has examined this at more financial institutions than avoidable practices. Conversely, a $ 10 million free-to-use loan could serve as a source of self-sufficiency if you look at a 20% minimum capital requirement for up to 50 million properties around you. All this, however, is rather a loophole and contrary to the purpose of the rules. The loan will not be available to active BAR listers (in case of outstanding debt), as stated above, but may be obtained in passive status, ie with a repayable debt.
Under current regulations, the maximum amount of credit that can be taken is the monthly installment of which is less than 50% of the official monthly net income or 60% for incomes above $ 400,000. If couples borrow together, the total value of their income is taken into account in determining the limit.