Zero percent loan Even for micro-businesses! | Business loans

The Ministry of National Economy (NGM) and the Hungary Improvement and Currency Bank (MCB) amended the description of the European Union-funded “Program for Supporting the R&D Activities of Companies” (GINOP-8.1.1-16). The changes, which came into effect on November 15, 2017, have expanded the range of eligible borrowers and micro-businesses can now apply for the extremely favorable zero-interest loan. A further relief is that the minimum amount of the loan that can be taken up has been reduced from the previous HUF 100 million to HUF 5 million, which further broadens the scope of potential clients.

Expand your toolkit for enhancements

Expand your toolkit for enhancements

Due to recent changes, the loan program will finance the closest part of the innovation chain to the market, where R & D & I carry commercially manageable risks.

Within the framework of the projects, it is also possible to plan the acquisition of equipment and infrastructure necessary for the production of the developed products, services and processes, which provide the company with technological advancement. Businesses can apply for R & D & I concessional credits at MFB 642 nationwide, or fill out an online credit assessment questionnaire.

Development Banking Network

Development Banking Network

The MFB Points network has been created to provide businesses with the resources they need to grow quickly and locally with ease of administration. Until July 31, 2017, 568 MFB Points were created in the country, followed by the opening of 74 additional points in recent months. Of the originally planned 642-member network, there are a total of 63 first-class MCB Points that perform the entire lending and sales process for all available products. Another 260 units are in the second category, where the entire credit and sales process for products requiring national reach is completed, and 319 third category MFB Points, whose main task is to inform and convey customer interest. The number of points in the capital has further expanded, so that 18 Budapest funds can be claimed from the EU.

For loan products sold through MFB Points, one of the main goals is to diversify funds locally. Thanks to its partner network, MCB is present everywhere, from the capital, through county seats to smaller towns, to help businesses: 72 percent of the population and 83 percent of businesses nationwide.

Between 2014 and 2020, Hungary will have more than 12,000 billion forints of EU funding at its disposal, 60 percent of which is earmarked for economic development. A unique system of institutions in Europe provides EU and retail loans to businesses and retail clients.

The program will primarily provide businesses with favorable loans for long-term financing, while natural persons, condominiums, housing cooperatives, and residential real estate will receive support for modernization work to increase energy savings, even without tangible funding.

What can foreign currency lenders expect now?

After the decision of the Mansion and the following article, we received several questions, which we now answer in a separate post. We have collected the facts we know and the opportunities we trust.

Who is affected by yesterday’s decision?

foreign credit

Only to the Kásler, who went to Openlook and sued, including because of the use of the exchange rate margin. Their case reached the Courthouse, where they were given a favorable judgment on the matter. The family is getting some money back, because the court said it was unfair to apply the exchange rate.

Can it be good for me too?

foreign credit

After the decision, the Mansion wants to make a unity decision on the matter, which can be made within 2 weeks. It will probably contain the same principle. However, even after that, everyone does not have the money automatically, but one by one they will have to go to court, but it will be easier as the courts have strong enough guidance.

It could be even easier if the government made the execution of the Curia’s unity ruling mandatory for all foreign currency borrowers, so there would be no automatic litigation. There is also a good chance of this based on prior government communication.

Later, can all foreign currency lenders get their money back?

Later, can all foreign currency lenders get their money back?

If this is the case, then yes. Authenticators and borrowers can be just as happy as mortgage lenders. If the above is really realized, then every foreign currency loaner can get money.

How much?

foreign credit

It depends on the exchange rate margin the bank used during the term of the loan and how much debt the borrower has taken. One time, a higher amount is due because the borrower received his loan at a purchase price, which is lower than the average rate. This represents a one-off item of around $ 50,000 in the case of a 1% exchange rate margin and a loan amount of $ 10 million. In addition, even foreign currency borrowers may receive back the amount they paid monthly due to the difference between their foreign exchange selling rate and their average exchange rate for their debt.

We also made a spreadsheet about it yesterday, which shows that it can be a few thousand forints a month.

This amount may be retroactively refunded to debtors. Homeowners have been paying back at the central rate for more than 3 years, so they can get back less and never pay less in the future.

I replaced it, prepaid it, paid it back, fixed it, etc. the element of faith, do I owe money?

I replaced it, prepaid it, paid it back, fixed it, etc. the element of faith, do I owe money?

Yes, even in such cases, the money is due, because it doesn’t matter if the loan is no longer alive or may have defaulted. If everything is supposed to be happening, you can even get money back if your apartment has been auctioned off, fixed exchange rate, better loan or repayment.

In addition, the sale rate used for early repayment may be illegal and may result in a refund.