After calculating your loan calculator to determine which is the best loan for you, the bank needs to know a few things before you can get your money. When you apply for a loan, banks carry out a credit assessment.
This means checking your creditworthiness and creditworthiness. It turns out in Hungarian whether you can get a loan based on your financial circumstances and, if so, how much.
What happens during a bank credit review?
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The credit assessment reveals the amount of creditworthiness limited. This shows you the monthly installment that you are still able to pay. The maximum amount that can be withdrawn depends on how much income you have and how much money you can repay without any problems. An essential part of any credit assessment is the income test, which looks at how much installment your payment still has.
According to the National Bank of Hungary’s Revenue Share Repayment Index (JTM) , up to 50 percent of all certified income that can be taken into account by the bank can be debited with a monthly installment payment . This rate will increase to 60 percent if your total income reaches $ 200,000. Banks, however, typically only allow 30-40 percent of their earnings to be charged. Incidentally, the JTM is calculated by dividing all monthly debt (current installments and, if applicable, previous) by the certified monthly net income. If the amount that the bank would lend you is not enough, you have the option of using a debtor or real estate collateral to increase the loan amount.
Income-based Repayment Indicator (JTM) example
Let’s look at a specific example , because it is important that you know the process too! During the loan application, the household members’ jointly verified income is HUF 340,000. The financial institution will check with the KHR to see if you have credit elsewhere, what the installment you paid (if any) is. Since your verified income is less than $ 200,000, the financial institution allows you to pay up to $ 50,000 in monthly installments. If the monthly repayment of the loan is still within this limit, there is no obstacle to borrowing.
Once you know how much repayment you can make, you can easily find the best loan: the personal loan calculator will list only the best offer per bank!
Home loan or personal loan?
It is also important for what purpose you want to make money. If you have a home loan, you can usually get a higher sum than you would for a free home. Banks consider risk-free loans to be more risky as the purpose of the loan cannot be verified. The home loan calculator will help you make your decision: in just a few clicks you will see which are the best and cheapest bank offers.