K&H: the turnaround has happened, the authentic ones have emerged

By: Trademagazin Date: 2025. 06. 20. 11:03

Retail lending has clearly reached a turning point. After the decline in early 2023, the credit market has gradually recovered and is now close to its previous peak levels – especially in the area of housing loans – according to K&H’s own data.

And for personal loans, the online solution is winning

The average interest rate on market-based housing loans is currently around 6.5 percent, which is particularly favorable, especially compared to inflation. Due to strong competition between financial institutions, borrowers are now often offered more favorable terms than the state itself – this is a rare but currently existing market anomaly. All this is a good indication of the activation of the credit market, which the population is increasingly beginning to recognize. The attitude of the domestic population to credit remains conservative: our debt-to-GDP ratio is one of the lowest in the EU. The majority of loans are linked to the highest income segment, with the top 20 percent taking out two-thirds of new home loans. The housing market continues to be characterized by low supply, with only 0.2% of the property stock being renewed annually. Due to the lack of newly built homes, the vast majority of loans are directed at used properties. Buyers are primarily compromising not on size but on the quality of the property – this is also indicated by the recent worsening energy ratings – as revealed at a press event held by K&H for financial influencers.

It can be even cheaper

Subsidized loan structures are gaining an increasing role: Babaváró, CSOK Plusz and green home loans are not only popular, but also provide real financial advantages. To illustrate this with an example: if a client covers a loan requirement of 26 million forints exclusively with a market-based home loan, the monthly repayment instalment can be nearly 194 thousand forints, while the same amount can be reduced to 134 thousand forints if it is combined with subsidised elements (Baby Waiting and CSOK Plusz). This is a significant saving, and the average interest rate for the above combination of subsidised schemes is therefore around 1.7%, compared to the market rate of 6.5%.

The personal loan market has grown explosively in the past year: monthly disbursements are approaching 90 billion forints, while previously they stagnated between 30-40 billion. In addition to the recovery in consumption, the simplification of borrowing also plays a key role in this. At K&H, personal loans are now available in a completely digital process that takes just a few minutes, especially for existing clients. More than a third of applications are for property-related purposes – renovation and modernisation.