The new green loan comes with favorable terms

Young people who meet the conditions can take out a low-interest green home loan from April 1, K&H announced, in line with the Hungarian Banking Association’s government-backed initiative announced last fall.

Interest rates below 5 percent are also possible

The green loan in question can be applied for by young people under the age of 35 to purchase an energy-efficient apartment with a primary energy demand of up to 68 kWh/m2/year and a minimum A+ energy rating. An additional condition for the residential property is that it can have a floor area of ​​up to 60 square meters and the price per square meter cannot exceed 1.2 million forints. Relatively few properties in the capital meet the price condition, so the green loan will be a good opportunity for young people in rural settlements and cities.

“At K&H, the interest rate on the green loan for housing for young people will basically be 5 percent for the first 5 years of the term, but with home and life insurance interest discounts this can be reduced to 4.7 percent. The scheme can also be applied for with a 10 percent deductible, with a term of 5-30 years. The interest period can be 5 or 10 years, or the interest rate can be fixed throughout the entire term for a maximum of 20 years, but it is important to know that the initial 5% interest rate is only valid for 5 years, after which the normal interest rate comes into effect. With the preferential interest rate, a loan amount of 20 million forints and a term of 20 years, the initial monthly installment would be less than 129 thousand forints,”

said Ildikó Oraveczné Németh, Marketing Manager of the K&H Retail and SME segment.