However, it does not matter which bank you choose if you are looking for a Baby Loan to redeem, as not all financial institutions have the ability to use a Baby Loan to repay their loan.
In the vast majority of cases, the credit institutions that grant prepayment determine the types of loans that can be redeemed by applying for Baby Waiting Support. Further complicating the situation is that it does not matter what kind of qualifying person (debtor or co-debtor) the Baby Waiting Support needs.
Why is the Baby Loan Worth Redeeming?
If one qualifies for the Baby Waiting Grant, you should definitely take advantage of the opportunity, as the loan becomes interest-free until the end of the term when a child is born. After the birth of the second child, one third of the outstanding debt and, in the case of the third child, the total debt will be state aid, ie there is no need to repay it. At present, no market product can compete with these conditions.
If you currently have a personal loan or home loan and cancellation it from the Baby Waiting Support, you can save up to millions of forints . It is worthwhile to use the Baby Waiting Loan even if you cannot repay the entire debt, only part of it can be repaid from the Baby Waiting Loan, because in this case the amount of the installment to be paid can be reduced.
However, there are huge differences between individual credit institutions, so you should pay particular attention to the bank at which applicants submit their claims for Baby Support, as the success of the claim may even depend on it.
Do you really not have a Baby Waiting Loan for every bank?
Unfortunately, this is true. Not all financial institutions offer Baby Loans for redemption. This may cause a problem because the Baby Loan is subject to the JTM. This means that claimants can be charged up to half of the repayment installment of all their existing loans. Repayment installments include existing credit cards and overdrafts.
However, the Baby Waiting Support may only be disbursed if its repayment installments and installments on other loans do not exceed the amount required by JTM regulations. If this value is exceeded, the claimant will not receive the Baby Waiting Support, even if he / she wishes to replace his / her existing loan.
Financial institutions that also provide Baby Waiting Support for a redemption loan do not take into account the repayment installment of the redeemable loan , as it will be repaid when the loan is disbursed.
Not all types of loans can be redeemed with Baby Loans?
Banks that accept the Baby Waiting Support for loan redemption also specify which types of loans can be redeemed for support. Some credit institutions allow you to redeem only the loans they have applied for. Furthermore, the difference between financial institutions is that some allow only personal loans and mortgage loans to be redeemed, while others allow for overdrafts and overdrafts.
What happens when I make a prepayment if the loan amount is less than the amount of Baby Waiting Grant?
If the amount of the loan to be replaced is less than the amount of Baby Waiting Grant requested, the remaining amount may be claimed by the claimants after the prepayment. It is worthwhile to use the maximum amount for the Baby Waiting Loan because the loan can only be applied for once.
Does it matter what the status of the claimant is on the loan?
Credit institutions use different practices to determine the status of a Baby Waiting Applicant in a redemption loan. There are banks that only allow you to redeem a loan that only has Baby Borrower debtors, but also find a financial institution that is less strict, that is, a demanding debtor can be in the loan to be redeemed.
If you would like to know what your options are for redeeming your Baby Loan loan, please fill out our form and our credit brokerage staff will search for you free of charge!