The National Bank of Hungary published its Trends in Lending update for 2025 Q3, showing an upswing in both household and corporate credit. Household loans outstanding at credit institutions rose by HUF 338 billion in the quarter, lifting year-on-year growth to 11.8%, while the corporate loan portfolio increased by HUF 242 billion, taking annual growth to 4.1%. Housing loan transaction value fell by 21% quarter on quarter, which the MNB attributed to deferred demand and a wait-and-see stance around the Home Start loan programme. New household loan contracts totalled HUF 834 billion, up 11% year on year, driven by a 34% increase in new personal loan contracts while new housing loan volumes were unchanged; personal loan issuance was supported by online availability, targeted outreach and larger contract sizes. Under subsidised schemes, banks had signed HUF 141 billion of Subsidised Loans for Workers by end-September (HUF 34 billion in Q3), and concluded 651 Home Start contracts worth HUF 22 billion during the quarter, with Home Start representing one-fifth of new housing loan contracts in September. Market-based housing loans averaged 6.5% (APR 6.8%) in Q3, while the average client rate on new borrowing fell to 5.1% in September when state-subsidised schemes were included; personal loan rates fell to around 15% amid stronger competition. On the corporate side, new non-overdraft lending reached HUF 838 billion, 5% above the same quarter a year earlier, with subsidised loans accounting for 26% of new contracts (33% for SMEs), supported by the Demján Sándor Programme; forint corporate loans priced with up to a one-year interest-rate period averaged 9.1% for loans up to EUR 1 million (2.6 percentage point spread) and 8.2% for loans above EUR 1 million (1.7 percentage point spread). Based on the MNB’s Lending Survey, banks left housing loan terms unchanged in Q3 and one-fifth eased consumer loan standards; net 66% expect housing loan demand to keep strengthening over the next six months due to Home Start. Corporate credit standards were unchanged in Q3 and are not expected to change over the next six months, while the Q3 decline in corporate loan demand is expected to turn into growth in 2025 Q4 and 2026 Q1, although banks do not anticipate a turnaround in long-term investment loan demand.
National Bank of Hungary 2025-12-01
National Bank of Hungary reports 11.8% household loan growth and 4.1% corporate loan growth in 2025 Q3
The National Bank of Hungary's Q3 2025 Trends in Lending report shows a rise in household and corporate credit, with household loans up by HUF 338 billion and corporate loans by HUF 242 billion. Despite a 21% quarterly drop in housing loan transactions, new household loan contracts grew by 11% year-on-year, driven by a surge in personal loans. Corporate credit standards remained unchanged, with expectations of increased demand in Q4 2025 and Q1 2026, although long-term investment loan demand is not expected to recover.