Month: August 2019

Finance: We pay the price of ignorance

by Elaine Willett

Nearly 14,000 people took part in the Financial Awareness Test on Hungarian financial literacy 1 . The research highlights a number of contradictions: according to experts, for example, Hungarians shorten themselves by tens of thousands of forints, with the majority turning to their own bank instead of looking around the market. The level of financial literacy of the population is well illustrated by the fact that while those with higher education and income are better adapted to the world of money, even 50% of those who feel that their knowledge is wicked.


Loans – we want the best, we just don’t look for it

Loans - we want the best, we just don

The purpose of the Financial Awareness Test, which was initiated by Conpidis and Bank Rikio, was to survey the financial literacy of Hungarians. The topicality of the research is illustrated by the fact that four out of ten people still have loans or loans, and most of them are satisfied with the structure they have chosen. genre.

Typically, at the word level, everyone agrees that it is worth looking around very carefully when borrowing, but nevertheless, a remarkable number (65%) would first turn to their own bank for such an account. Four out of ten feel they are unable to compare offers, although experts suggest that in most cases they would be able to obtain better terms elsewhere: “The lack of orientation and careful search often leads to people not finding the best constructions for them, they will cut themselves by ten thousand forints, ”said Polly George, founder of Bank Rikio.

More than three-quarters of those who responded to the questionnaire said that credit offers were not transparent enough, and almost two-thirds were afraid of fine print. Almost one in four people dare to take credit only with big-name banks with many branches. In smaller or less accessible banks, slightly more than half of the respondents trust them, even though they may be significantly better off financially.

“Research confirms that loans still have legitimacy: it is not a problem of looking for external financial resources, but of doing so irresponsibly without due diligence. Therefore, it is important for everyone to compare the offers of credit institutions as a minimum to find the most advantageous arrangement, ”said Betty Holly, Head of Conpidis Hungary Branch.


Loans: Many don’t see the point

Loans: Many don

There is a great deal of uncertainty about what is most important about a loan. Nearly one-fifth of those who filled in said THM or all repayments, but half of them would not start with specific benchmarks in this case, but would make decisions based on generic terms such as “security.”


Financial literacy: The needy are in the worst position

Financial literacy: The needy are in the worst position

Half of the people are not specifically at home in this area and slightly more are dissatisfied with their financial knowledge. Typically, men, those in the 31-40 age group and those living in the city are more confident, while the more vulnerable people, who are presumably of poorer financial stability, are less likely to trust their own knowledge. More than half of the respondents feel that they do not understand banking language explicitly, and almost half of them feel that they are not familiar with the words and phrases commonly used by banks.


Seed Cleaning – This is where we are most conscious

Seed Cleaning - This is where we are most conscious

Nearly three quarters of participants have savings, although three out of ten people do not have enough quarters to save money for a quarter. On the order of magnitude, there are just as many who express themselves as conscious of saving: eight out of ten consider it important to be set aside on a regular basis and always or often succeeds. However, far fewer than four out of ten are investing their money. In general, men tend to save more than women and invest more often. The highest proportion of 31-40 year-olds pay attention to their finances, regularly set aside and invest some of their savings.

Housing savings banks and their future – Loans

by Elaine Willett

Housing savings banks are credit institutions that raise funds (savings) from individuals and legal entities with the aim of lending them to these same individuals in the form of favorable housing loans after the statutory deadline.

The article deals with the subject in detail. If you’re just looking for the best line of credit and don’t have time to read, you can fill out a credit questionnaire right away.

Let’s go to the questionnaire!

Credit institutions


The term credit institution is specific to European Union law. Croatia is in the process of aligning its legislation with the European Union, so it has implemented the notion of a credit institution in Croatian regulation.

The term credit institution means a legal person whose organized activity is to raise funds from natural and legal persons and channel the funds thus collected into loans for its own account.

There are three types of credit institutions in Croatia: banks, savings banks and housing savings banks.

Basic about housing savings

Basic about housing savings

Housing savings means raising funds from savers for the purpose of resolving their housing issue and granting housing loans with the financial support of the Republic of Croatia.

The Housing Savings Agreement can be concluded by Croatian nationals and natural persons residing in Croatia, and the approved loan funds can be used only in the territory of our country.

Savings are usually contracted for five years. The depositor is obliged to pay the contracted amount, ie the savings deposit, regularly and in accordance with the agreed dynamics.

Although at the end of the contractual savings period, the depositor has no obligation to borrow, the housing savings account is a term purpose deposit.

State incentive funds make housing savings attractive?

State incentive funds make housing savings attractive?

The purpose of housing savings is to realize a favorable housing loan to address the social status of young people. That is why in most countries, and until recently in our country, Governments are stimulating housing savings by paying out state incentives (DPS).

The DPS is calculated by increasing the average interest rate on newly contracted foreign currency household deposits with credit institutions over a period of 1 to 2 years by half the average yield on five-year government bonds.

By October 31, the Ministry of Finance prescribes a percentage of government incentives for the following year. The state incentive funds for 2015 will be 4.90% on the deposited savings deposit, but a maximum of HRK 245.00 per annum per depositor for the current calendar year.

DPS for housing savings collected in 2016 will amount to 4.10%, with a maximum of HRK 205.00 per housing saver during the calendar year.

Savings deposit represents the total amount paid into housing savings less the amount of fees paid by the savings bank during one calendar year.

DPS are repaid at the same interest rate as the savings deposit.

Payment of DPS


If the contractual savings period is less than five years, the housing saver is entitled to a DPS only in case of purposeful use of the saved funds, ie if he / she requests a home loan. If the savings time is five years or longer, the depositor is entitled to the payment of the DPS and the associated interest, regardless of the purpose of using the savings.

The amount of DPS per depositor is defined by the Government. Since 1998, when the DPS entered into force, until 2015, the maximum annual amount of DPS has been repeatedly reduced.


Do KAPA-S entrepreneurs pose a greater risk to the bank, so they get only a small amount of credit?

by Elaine Willett

KAPA taxation has become popular, and as a result, the number of people opting for this favorable form of taxation is increasing significantly. Many people take out a personal loan, but what can a KAPA expect for a loan?

When taking out a loan, a KAPA contractor is at a disadvantage compared to the employees!

There is a lot of interest in personal loans, which did not decrease at the beginning of the year. The interest environment is not changing, very low, wages are rising, borrowing is easy, fast, we do not need real estate collateral, only our income is collateral. Higher Income People Can Get More Loans! According to current regulations, due to the regulation of our monthly repayment, we can pay up to 50% of our net income, there is a financial institution that does not provide it either!

If KAPAS is an entrepreneur doing business, it is almost impossible to tell what the next month’s income will be.

How does the bank think? How does the bank determine how much credit we can borrow?

How does the bank think? How does the bank determine how much credit we can borrow?

A KAPAS is hard to claim! What is needed?

  • NAV will issue us an income certificate!
  • The tax office issues a certificate of income for only 60% of total annual revenue.
  • This is also a limitation
  • If we have a BT and we are members, 50% of our income will be 50% of that income base.


KAPAs taxpayer repayment based on annual income!

tax repayment

If the annual income of the company is $ 3 million, then our monthly salary is $ 250,000. The employee can receive a loan of $ 100,000 after this income, and the KAPA’s repayment can only be $ 75,000. And if you continue to operate as a BT, you may be paying up to $ 5,000. So the majority of Hungarian micro entrepreneurs are not able to get a bigger personal loan!

If the sales revenue is $ 5 million, then the entrepreneur has a net monthly income of $ 417 thousand, but even so he can pay only $ 52 thousand a month if he maintains BT.


Calculated on a monthly basis

credit loan

Immediately we can see that with a monthly net entrepreneurial income of $ 200,000 you can pay only $ 60,000 and $ 30,000 monthly. In fact, with a maximum monthly income of $ 500,000, you can pay up to $ 150 or $ 75,000.


What is the maximum loan amount?

loan amount

Let’s look at this now with an average 10% interest rate and a 5 year maturity.

  • If KAPA has a net income of $ 200,000, you can get a loan of up to $ 2.8 million over 5 years,
  • but in the case of BT it is only $ 1.4 million.
  • If the income is 300 thousand USD, then the figure could be 4.2 or 2.1 million USD.

And it’s still far below the maximum of $ 10 million available for personal borrowing.

Even with an income of $ 500,000, the KAPAs entrepreneur can only get a $ 3.5 million personal loan.

Being a KAPA entrepreneur puts the bank at a higher risk than a loan applicant with a traditional employee income, and even as a collateral, interest rates can be higher!

If you are interested in home loans, CSOKs, qualifying consumer loans, changes in home mortgages, or need a personal loan, contact our credit brokerage experts who will provide you with expert advice on free loans!

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