Takarékbank: personal loan lending may increase to fivefold by the end of the year

After the pandemic subsides, the demand for personal loans may increase, the volume of 5 billion HUF placed with Takarékbank by the middle of April may jump fivefold by the end of the year thanks to the home renovation program, the financial institution belonging to Magyar Bankholding told MTI on Wednesday.

It was emphasized that in the first months of the year, customers applied for an average personal loan of 1.7 million HUF at the bank, amounting to twenty percent more than before.

Among the borrowing goals, home renovation has been popular so far, it now
dominates even more according to the experience, they noted. This is because many people do not finance the conversion of their property with an interest-subsidized mortgage loan, but with a personal loan. In addition, personal loans are mainly used for car purchases, larger family events and loan redemptions, they added. (MTI)