More than 5,000 companies have already applied for an interest-free restart loan from the MFB, and banks operating MFB points are still waiting to receive applications in the coming weeks. The MFB contacted the Notaries Chamber so that the debt returns required for the loan can be documented more quickly.
During the first week, over five thousand advance loan applications were accepted on MFB Points of the No-Interest Quick Appeal Loan – Hungary Development Bank (MFB) informed the global economy. All the banks that operate the MFB point network have received a lot of attention, but at the moment, as stated on Granite Bank, customers have been primarily concerned with product conditions. According to Takarékbank experts, it can also be seen that some interested parties are waiting for restrictions to be eased by submitting the application, when they can actually restart their business.
According to the experience of the Bank of Budapest (BB), many of them actually bleed into pre-qualification
Who will be able to apply for a loan based on the scope of their activity as they did not have a positive business result in 2019.
According to BB, many interested parties have not yet been able to resolve the loan application, they only plan to do so in the coming days and weeks. By Tuesday noon, about two hundred claims worth more than 1.5 billion HUF were accepted at Takarékbank, and according to the bank, they already had 40 acceptable transactions worth around 330 million HUF. In MFB points managed by OTP Bank, thousands of companies were already interested in the plan in the first week, taking out an average loan of 8 million HUF.
The number of applications the financial institution receives is close to 2 billion HUF.
Photography: Morish Sabjan Simon / Global Economy
MKB also operates on a large number of acceptable transactions. According to them, the process is really fast, and many contracts have already been concluded.
According to data for the first week, most of the orders at OTP Bank came from accommodation and hospitality, as well as arts, entertainment and leisure services. In terms of region, companies in the provinces of Budapest and Pest, as well as in northeastern Hungary, were the most active.
Representatives of sectors affected by the March restrictions can apply for the express loan starting March 16, one week after the start of the program. Takarékbank believes that many companies within TEÁOR’s expansion scope are taking advantage of this opportunity, and the bank expects that with the help of their MFB points, they will disburse a Quick Start Loan to thousands of companies, amounting to tens of billions of forint. In order to ensure smooth operation, Takarékbank is preparing to speed up the credit evaluation process by redeploying employees, if needed. Your entire digital express loan application will start on Gránit Bank in a matter of days.
However, there are bottlenecks in the terms of the loan.
According to the conditions, in order to apply for a loan, it is not necessary to have a real estate guarantee, but it is necessary for the client to unilaterally acknowledge a debt documented after the contract is concluded in a special deed. The MFB consults with the Notaries Chamber to ensure that notaries use a simplified form for notarial deed. According to the bank, clients will be relieved of the burden in the process, and MFB Pont will send the customer’s data to the notary. The MFB also consults with the Notaries Chamber on capacity planning to avoid potential congestion. The banks that trigger MFB points are also seeking to reduce management in other cases and pledge to help their clients obtain notarized bond.
