Data from the Hungarian National Bank (MNB) indicates that in January, approximately 23,800 personal loan contracts were signed by household customers at banks, amounting to around 74 billion HUF.

This marks the first instance in which the average loan per contract has exceeded 3 million HUF, a significant increase compared to previous years.

The average contracted amount has been rising steeply over the last few years.

In 2019, the average was just under 1.8 million HUF, which climbed to about 2.24 million HUF in 2022. By the end of last year, the figure approached 2.7 million HUF.

The average amounts for personal loans have been recorded as follows:

- 2019: 1.79 million HUF
- 2020: 1.81 million HUF
- 2021: 2.16 million HUF
- 2022: 2.24 million HUF
- 2023: 2.13 million HUF
- 2024: 2.69 million HUF
- January 2025: 3.11 million HUF

The increase in borrower confidence has mirrored the rising cost of common personal loan purposes, such as purchasing used cars or home renovations.

Prices in these sectors have seen significant rises due to various factors, including higher costs of new vehicles and increasing prices for construction materials and services.

In addition to these market pressures, real wage growth over recent years has expanded the financial capacity of borrowers.

Increasing incomes have enabled households to manage larger monthly repayments.

Financial institutions have also contributed to this trend by raising the amounts available for loans.

Current lending ceilings have been raised, with 10 million HUF becoming a common limit; some banks have even set ceilings at 12 million HUF, and one has offered up to 15 million HUF.

Access to personal loans has also improved significantly over the last couple of years, with many providers offering a streamlined application process, including mobile apps that can finalize loans in minutes, leading to approvals within an hour.

Interest rates have another crucial role in influencing the average amount of loans taken out.

In the context of personal loans, it remains true that the available interest rate is inversely proportional to the verified income and the requested loan amount.

Thus, the more funds an individual requests, and the higher their monthly income, the more favorable the interest rates become.

In recent months, however, there has been a shift where lower rate offers are available even for smaller loan requests.

Examples of current loan offers include:
- CIB Bank requires at least 7 million HUF for the lowest interest rate of 9.64% annually, with additional discounts for renovation purposes.

- Cofidis offers a loan of 3 million HUF at 9.9% interest, conditional on a minimum monthly income of 450,000 HUF.

- Erste Bank offers the best rate of 9.89% from 3 million HUF, contingent upon a monthly income of 400,000 HUF.

- K&H provides a 9.99% interest rate for loans above 7 million HUF, also requiring a minimum monthly income of 400,000 HUF.

The average interest rates for personal loans (in HUF, annualized from contracts in January) have also seen fluctuations over the years:

- 2017: 16.13%
- 2018: 14.10%
- 2019: 13.35%
- 2020: 12.69%
- 2021: 12.39%
- 2022: 12.38%
- 2023: 19.02%
- 2024: 18.27%
- 2025: 16.16%

Demand for personal loans remains strong, with no indication of significant changes on the horizon.

This sustained demand is likely buoyed by the recent decline in interest rates.

Last year saw a record high for the market of personal loans, with the total value of contracts reaching 819 billion HUF.

This figure far surpassed the previous record set in 2019 of 558.7 billion HUF.

By year-end 2024, the total amount of personal loans also hit a record, exceeding 1,533 billion HUF, representing a year-on-year increase of over 14%.