Hungary personal loan market hits record borrowing and offers 10‑year terms

In May 2026 Hungarian households took out a record 131 billion forint in unsecured personal loans, a 31.8 % rise over the same month a year earlier. The number of loan contracts grew 13.7 % to 35,872, and the average loan size rose above 3.6 million forint.

Banks are now extending loan maturities up to ten years, whereas previously the longest term offered was eight years. The longer repayment period lowers monthly installments, making larger loans accessible to borrowers whose income‑to‑debt ratios would otherwise exceed regulatory limits. However, the total amount repaid over the life of the loan is higher, and interest rates remain above those of comparable low‑amount mortgage products. The expanded terms and higher loan amounts are positioning personal loans as a viable alternative to small‑value, free‑use mortgage loans.

Industry experts note that while the longer terms increase affordability, they also raise the overall cost of credit. The shift reflects banks’ response to growing demand for larger, unsecured credit without collateral, and it may influence household debt dynamics in Hungary.