Hungarian government introduces zero-interest loans for young Hungarian workers as part of new economic policy

The National Economy Ministry on Wednesday announced the launch of public consultations on a government scheme to offer young Hungarian workers zero-interest loans.

The ten-year loans up to HUF 4m (EUR 9,800), available to working, non-graduates between the ages of 17 and 25, will be available from the start of 2025. The scheme could support career starters with around HUF 500bn, the ministry said.

Borrowers must work at least 20 hours a week, under contract or as an entrepreneur. They must also pledge to continue to work in Hungary for a period of at least five years.

Women who take out the loans will get a two-year grace period after the birth of their first child. Half of the loan’s principal will be forgiven after the birth of a second child and the full amount after the birth of a third.

The scheme is part of the government’s New Economic Policy Action Plan which seeks to boost Hungarians’ purchasing power, ensure affordable housing and scale up SMEs.

Read also:

• Blue-collar wages surge: Hourly pay jumps 13.1% in Q3 in Hungary
• Hungarian government unveils new economic initiatives: Blue-collar loans, home renovation subsidies, and family tax credits

Featured image: depositphotos.com