More and more young people are using K&H’s workers’ loan

The stock of state-subsidized employee loans at K&H has reached an important level, the financial institution announced. The loan structure aims to support young adults’ entry into the world of work, whether it is renting their first apartment, moving, purchasing equipment or the initial costs of starting work.

Over five thousand and twenty billion

The amount of the worker’s loan can be between 500 thousand and 4 million forints, the amount must be repaid over 2–10 years, and the state guarantee provides preferential terms. The only mandatory burden is the 0.5 percent annual guarantee fee, which is payable on the principal debt. Based on K&H’s calculations, the monthly installment for a 2 million forint loan is approximately 17 thousand forints, while for a 4 million forint loan it can be approximately 34,000–35,000 forints, with a term of 10 years. Since the interest is paid by the state, the repayments are based solely on the principal and the guarantee fee.

As a result of the more than 5,200 concluded K&H worker’s loan contracts, K&H has allocated 20.5 billion forints to those affected. This also shows that most applicants requested the highest amount, 4 million forints.

Important pillar

“The worker’s loan is a real help for those young people who want to start their career with a secure financial background. The costs of their first home, moving or starting a job are a serious challenge, so this scheme can be one of the keys to becoming independent”

– said Gergő Molnár, Head of Retail Marketing at K&H Bank.

According to K&H’s experience, interest in the worker’s loan may continue to grow in the second half of the year, as more and more people enter permanent employment after summer employment. The program fits both the needs of young people starting their lives and the government’s goal of supporting a stable, Hungarian livelihood and employment in the 20–25 year old age group.