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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