Erste Bank launches new employment loan

This loan, referred to as the employment loan, offers interest subsidies aimed at helping young individuals as they start their professional journeys, according to BiztosDöntés.hu.

Loan Details

The employment loan has a minimum borrowing amount of 500,000 HUF and a maximum of 4,000,000 HUF, with repayment terms ranging from 5 to 10 years. It is available to those aged 18 to 25 (before turning 26), who must also have a stable income of at least 260,000 HUF net. Applicants are required to be employed or self-employed for at least 20 hours a week.

Notably, male applicants are not eligible for deferred payment benefits or childbirth support. While the loan can be used for various purposes, if the goal is to pay off an existing loan, the total amount must be fully repaid upfront.

Application Process

Erste Bank aims to process loan applications within 10 working days, allowing for two opportunities for applicants to provide additional information if necessary. Financial expert Gergely Péter notes the loan can be combined with other supported loans, making it especially beneficial for applicants looking to purchase a home using the best possible financial arrangements.

Those who meet the repayment requirements might consider maximizing their loan up to the 4,000,000 HUF limit, as this is an interest-free option provided that applicants adhere to the terms. However, there are still some associated costs, such as a guarantee fee, which can be calculated using tools available on the bank's website.

For more information, visit Telex.