Even before the launch of the Baby Waiting Loan on July 1, 2019, there is a huge upfront interest in the scheme, as support of up to HUF 10 million is available if applicants meet the legal and credit institution conditions. One of the most important elements of the conditions is the income test, because it determines how much the claimant can get from the total HUF 10 million grant.
What is a Credit Rating?
Credit rating is the process by which a credit institution examines whether a claimant meets the conditions specified by law and the bank’s internal regulations. This includes an income test, where the financial institution examines whether the claimant will be able to repay the loan taken out of his income. The income test is also important in the case of a Baby Waiting Loan because there is no real estate collateral for this loan, which would serve as a security in case of non-repayment of the loan.
Credit will be granted to the claimant under stricter conditions
Banks do not accept, nor do they recommend the inclusion of income, and therefore no support, if the applicant is still on probation at his / her workplace. Wait for the trial to expire before submitting your application. In the case of people with a fixed-term contract , it is to be expected that the credit will be granted to the claimant under stricter conditions.
The minimum net income for a 10 million Baby Waiting Support is 20,000 for a 20 year term.
In the case of income from a KATA enterprise, based on current market lending practice, it is sufficient to have a 3-month past, a Baby Loan requires a 12-month entrepreneurial past and, in most cases, must have at least one closed business year.
How do banks take income into account?
In the case of loans without real estate collateral, financial institutions allow up to 40% of their certified net income to be debited with a repayment installment. In the case of a net income of HUF 100,000, the payment can be debited up to a maximum of HUF 40,000.
If you do not have your first child within 5 years of the date of your baby’s loan, the loan will cease to be interest-free, so in case of a loan of HUF 10 million, HUF 74 thousand will be repaid over a period of 20 years instead of HUF 45 thousand. Credit institutions will, as a precaution, examine the coverage of this $ 74,000 installment when checking income. From this the amount of around HUF 220 thousand mentioned above was calculated.
Because banks will be responsible for credit rating, despite the fact that the interest rate and repayment terms of the Baby Waiting Support are the same for all banks, there may still be significant differences between individual credit institutions in the amount of Baby Waiting Support that can be accepted. It is worth asking our credit brokerage specialists about the different terms and conditions so that you can obtain the highest possible amount of support.
What to consider when applying for a Baby Waiting Loan?
Repayment installments of previously taken loans reduce the amount of Baby Loans that can be claimed. For example, if you haven’t used your credit card you may want to cancel it. It’s a good idea to collect all overdraft, credit card, or credit debt information before you inquire. It is also good to do this because the Baby Waiting Loan can also be used to redeem a loan. It is worth considering this option as well.
Baby Waiting Support can only be claimed once!
The maximum $ 10 Million Baby Waiting Support can only be claimed once. This means that if a person currently has only 7 million forints and can take out a baby loan on the basis of his / her income, if his / her income situation improves he / she will not be able to apply for the unallocated 3 million support.
The $ 10 million Baby Waiting Loan is just because you don’t have to pay interest on it for about $ 8 million more than a personal loan. It is estimated that a couple with an average income is expected to be worth between $ 6-7 million.
If you would like to know more about the Baby Waiting Loan or you are interested in the Village CSOK Terms and Conditions, please fill out the form below as our credit broker will be looking for you!