Hungarian National Bank Advises Caution In Borrowing
- 15 Dec 2015 8:00 AM
The MNB is advising Hungarians to be careful in taking out consumer loans during the Christmas season. The central bank noted that the total cost of lending (THM) for consumer credit, personal loans, overdrafts and credit cards can vary significantly among service providers.
In the latter two categories, in the majority of cases, service providers charge a THM of 30-40%, the maximum allowed by law.
Consumer credit loan rates are capped at 25.65% by the MNB.
Only one-tenth of lenders actually charge zero interest on personal loans, the MNB said.
Besides looking at THM rates, consumers are advised to compare retail prices, the central bank added.
Source: Hungary Around the Clock
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