Sunny Bank has continued its interest in the baby loan available from July 1, with over 14,000 claims, of which over 7,000 have been disbursed by the credit institution, said Ramaya Kalwart, deputy CEO of Sunny Bank.
Adding a smooth and paperless way to help customers sign up for their contracts on the digital signature pad at every Sunny account, he added.
According to the description, the majority of clients require a maximum loan amount of USD 10 million, the average amount of subsidies paid so far was USD 9.7 million. If all the paperwork is OK, there may be baby waiting support in the customer’s account within a few working days, said the Chief Executive Officer.
Sunny continues to pay the majority of family home rebate (choc) claims, with the credit institution receiving more than 5,000 applications in the first six months, totaling more than USD 20.5 billion. Until the end of June, the financial institution disbursed about USD 18 billion.
Almost half of the subsidies requested this year are related to construction, one-third to the purchase of new homes and one-fifth to the purchase of used homes, said Ramaya Kalwart. Since the launch in January 2016, around 17,000 clients have requested support for three or more children. So far, about 10 thousand subsidized loans have been applied for, the average loan amount is USD 9.8 million.
Sunny has signed more than 42,000 contracts
The Deputy CEO emphasized that it is typical that 70% of clients use a home loan to support their housing purpose, with an average of 8 million forints per loan. Since its introduction in July 2015. By August 25, more than a thousand village chocolate claims had been received, worth USD 6.1 billion. The average amount of village chocolates is USD 7 million at the bank.
Ramaya Kalwart also reported that in order to reduce the interest rate risk of its customers, the bank had already in 2018 paid attention to the customers opting for a safer, longer-term interest rate period for loans.
He emphasized that the proportion of fixed-rate loans within new applications is clearly rising. In January 2018, the share of market-based fixed-rate loans with an interest rate of at least 5 years was 63 per cent of new loans, which was over 99 per cent by the end of Q2 2019.
Of the fixed rate loans, the shortest 5-year loans are no longer the most sought after. These rates have fallen below 10 percent, and loans with a fixed interest rate of 10 years or longer are the most popular, said Ramaya Kalwart (MTI).