What kind of credit can you get instead of Baby Waiting Support?
On July 1, the Baby Waiting Support was introduced. Those who qualify can make a lot of money with it. Unfortunately, in many cases applicants were confronted with the fact that they did not meet any of the conditions, so their application was rejected. What can they expect? What kind of credit can you get instead of Baby Waiting Support?
Baby waiting support is free to use.
Whoever qualifies for the Baby Waiting Loan pays the interest-free loan for 5 years . If a child is born during this time, it becomes free for the duration of the race. For the second child, 30% of the debt is forgiven, while for the third child, the total debt is canceled.
The big question is, how can the Baby Loan loan be replaced? Unfortunately, replace it with nothing, but a similar construct can be a personal loan. There are some overlaps and similarities between the two loans, but of course, in the case of a personal loan, there is no question of forgetting the debt, for example. The personal loan is also for free use, and the maximum loan amount is as much as USD 10 million, as in the case of the Baby Waiting Loan.
There is no government support for a personal loan, so you have to pay interest to the banks. However, at the moment personal loan interest rates are low, so they provide a favorable financing opportunity, while the application conditions are considerably looser than the conditions of the Baby Loan.
As far as income is concerned, at least the minimum wage (net $ 99,085) is required for both loans , but in many cases the expected income is even higher. The expectant couple’s income is taken into consideration only in the case of the Baby Waiting Support, there is no possibility to involve another person. In the case of a personal loan, it is also possible to involve other debtors who also have a proven income.
The JTM limit is the same for both loans. Below the USD 500,000 monthly net income, the ratio of the amount spent on the loan repayments can be up to 50%, and up to 60% if the income reaches this. Both Baby Waiting Support and Personal Loans accept many types of income when applying for a loan:
- Hungarian employee income
- foreign income
- cash income
- entrepreneurial income
TB legal relationship – employment relationship
At least one member of the couple must have a 3-year TB relationship with a maximum of 30 days of interruption for the Baby Support. If you have changed jobs in the last 3 years, the period between two jobs must be less than 30 days. A maximum of six months may elapse between obtaining a diploma from a tertiary education institution and taking up employment, otherwise the legal relationship with the TB will not be considered continuous. For the past 180 days, only employee and entrepreneurial relationships may be accepted.
In the case of a personal loan, the loan applicant must have been employed for at least 3 months and may not be on probation. Banks prefer indefinite employment contracts, but indefinite duration is not an excuse. In the latter case, the bank may ask the company to provide proof that it will continue to employ the employee.
Only married couples who have not yet reached the age of 41 may apply for Baby Support.
The general rule for a personal loan is that you must be 18 years of age to apply for a loan, however, most banks lend from the age of 20-23. The upper age limit is usually that the debtor is under 70 years of age during the term of the loan. Both lower and upper age limits may vary from bank to bank. There is a financial institution that lends to older people, but then you need to take out credit insurance
Baby support is only available for married couples. If the couple has an unmarried but unmarried child, at least one of them must have their first marriage.
A personal loan is not a marriage contract. Anyone can claim it. Another issue is that stricter conditions apply to single people. This is because having two earners means greater financial security for the bank.
In the case of the Baby Waiting Grant, the interest-free is conditional on having children. If there is no child born, after five years the state subsidy must be repaid and the loan itself is converted to market interest rates.
For a fixed rate personal loan, the only risk is that you will be able to pay the monthly installment correctly throughout the term.
The maximum amount of both the Baby Waiting Grant and the personal loans is USD 10 million.
Even in the event of divorce, the interest rate subsidy for the Baby Waiting will cease, and if the baby is not born before the divorce, the earlier interest subsidy shall be repaid in one lump sum. However, if the parties remarry within 5 years, the interest subsidy and loan suspension, as well as the childbirth allowance, will be reinstated.
In the case of a personal loan, banks insist on involving married couples and partners as creditors in the credit transaction. There is no penalty for a personal loan at the time of divorce.