The THM-ceiling may be the end of quick loans

Many people agree that now it is time to tighten the conditions of the Hungarian retail lendings, including consumer credits. One elements may be the much-debated introduction of the THM-ceiling.

Beside the current base rate THM would be 65 percent. Currently none of the quick loan providers are able to comply with the new regulations with their current business model. The 300 thousand market of the quick loans can left without a financial services provider and because there is a clear need for fast access, small amounts without collateral, there is a real danger that these people would turn to usurers – reports penzcentrum.hu.