Workers' loan celebrates first anniversary - K&H Bank shares its experiences
According to the bank's announcement, the average amount of personal loans taken out at K&H rose to HUF 2.4 million by 2025 from HUF 1.6 million last year, meaning that the average loan amount increased by approximately 50% in one year. The increase in the average amount can be partly explained by rising wages, and higher loan amounts have made responsible borrowing and advance planning even more important.
Introduced last year at this time, workers' loans at the financial institution average HUF 3.94 million, which is essentially equal to the HUF 4 million upper limit for labour loans, with an average term of 9.7 years, typically with 10-year structures.
"The product is primarily used for larger one-off expenses that exceed their savings but do not yet justify a traditional mortgage loan," said Gergő Molnár, head of retail marketing at K&H.
Based on K&H's experience,
the most common use of workers' loans is for housing purposes,
including renovation and modernization. Another common use is when young people supplement their own funds in a larger home purchase or housing project. The second most common purpose is car purchases. The third is refinancing: many young people use worker loans to replace more expensive, previously taken out loans or partially fragmented debts with more favorable, predictable arrangements.
According to the bank's experts, in the current environment, young people who use preferential opportunities—such as state interest subsidies—not for short-term consumption but for longer-term value creation, such as
housing, mobility, or stabilizing their financial situation, are doing best.
Cover photo (for illustration purposes only): Portfolio
