More and more people are taking small loans

The vast majority of the financial profession expects an increase in personal loans, but in their opinion the growth will probably remain below 10 percent. The number of personal loan contracts reached 300,000 in 2019, this number decreased to 220,000 in 2022, and although the number of loan applicants may drop back to last year’s level this year, the loan amounts will certainly not reach the previous level, said one at the most important domestic financial professional conference. Gergő Molnár, head of retail marketing at K&H, expressed the opinion that due to the possibility of quick and easy borrowing, a large number of loan applications for smaller amounts of a few hundred thousand forints will be received – and the effect of this is that the value of the loans placed does not increase, instead, the previous current account, credit card and merchandise loans were transferred to the personal loan page.

At K&H, it can be said that 50% of personal loans are taken out by their own customers. According to Gergő Molnár, this is of course also due to the fact that their digital channels are very popular and therefore their existing customers are happy to use them for taking out loans. K&H knows its customers, so it is able to approach them with a loan offer in the exact situation when they most likely need it. According to him, digitization can also be the solution to make loans that can be applied for immediately become more accessible. If it is easier to get such loans, it can also have a favorable effect on the costs of the loans, since it is easier to compare competing offers.