If you are thinking of a loan of over $ 50,000, it doesn’t matter what your income is. There is a general rule that determines what percentage of your income can be paid off. But banks can set stricter conditions in their offers.
They are limited in your interest
When borrowing, it does not matter how much income you have. Due to the negative experiences of the past years and the high level of indebtedness of the population, the Bank of Hungary introduced a restriction on the repayment of income in January 2015.
The Income Proportional Rate Indicator determines the maximum monthly amount that can be paid in installments based on the borrower’s regular and legal income.
The examined by the financial institution for each new loan of more than HUF 200,000. The maximum income proportional installment and loan coverage ratios:
How much income you have depends on how much you take
What maturity and what interest you choose. Your total certified income (verified income, which you can prove by official documents, such as a bank statement or employer’s certificate) includes, for example, family allowances, other maternity benefits, and business income. You should be aware that in the case of borrowing, the bank also takes into account the amounts that may be used to repay other loans.
The table below shows the minimum income required by each bank when borrowing. Which bank has the ‘No Limit’ clause does not matter how much you earn. This is because the requirements set by the aforementioned National Bank of Hungary come into effect, and the Percentage Rate is used to control what percentage of your salary can be paid in installments.
In addition to the minimum income
There are loan offers where the bank expects a higher income, in return, giving the borrower various discounts. For example, if you have a higher income and you agree to have your payment deposited with an account with that bank, you will be able to obtain a better credit.
Generally, the higher the income from these offers, the lower the interest. You can find similar offers in E-money’s loan calculators, which include minimum incomes, and compare each loan structure by APR, installment, or total repayment amount.