Hungary reduces maximum loan interest rates from July

Effective July 1 2026, Hungary’s legal cap on the total loan interest rate (THM) for personal loans will fall from 30.5 % to 30.25 %. The change follows the February reduction of the National Bank of Hungary’s base rate from 6.50 % to 6.25 %, which lowers the permissible THM ceiling by 0.25 percentage points.

The statutory ceiling for credit‑card, overdraft, retail and pawn‑loan products will also be trimmed from 45.50 % to 45.25 %. While many banks already charge rates well below these limits – some offering around 10 % THM for small‑amount loans – the new caps are expected to push providers to lower rates further as competition intensifies. The legislation allows for additional reductions; a further 0.25‑point drop is possible for the 2027 cap, depending on the base rate at the end of 2026.