Almost every young couple eligible for Baby Waiting Benefit would like to use the maximum amount of HUF 10 million. However, according to the applicable JTM (Income-Rate Repayment Rate) regulations, claimants determine their disposable income.
How to get support?
According to surveys of the last few weeks, the vast majority of claimants want to use the maximum of 10 million HUF for Babysitting, but not everyone will pay the maximum amount. One of the most common reasons for refusing to pay full support is that the couple or family is already paying some installment, so their income does not provide enough cover for the full Baby Loan.
The installment payable on a credit card, personal loan, or home loan reduces the couple’s disposable income . Because Baby Waiting Grant is covered by the JTM, credit institutions should examine the claimants’ income and reduce their income by paying off installments on their outstanding debts.
Fair Banking Law: Families Can’t Debt!
Some of those who are expecting Baby Waiting Support are ignoring the fact that the Fair Banking Act no longer allows a family to take out new loans and thus become indebted. The legislators did this by introducing various so-called debt brakes. These brakes need to be examined by credit institutions when determining whether a particular loan can be obtained by claimants. One of the most commonly used indicators is the income-based repayment rate (JTM).
In fact, JTM shows how much of the claimant’s certified income can be used to repay the loan. And the size of the installment installment so determined will tell you how much credit you can claim. Credit institutions look at this indicator each time they apply for a loan, so that the claimant does not have to pay a larger installment than allowed by law.
The calculation includes the details of an existing personal loan, home loan repayment, but also an unused credit card and overdraft.
Different types of credit are taken into account to varying degrees in the calculation of the JTM. In the case of a long-term, fixed-rate loan (home loan), the regulation allows a greater proportion of income to be used for loan repayment than for a short-term loan (personal loan). The exact details of the regulation have already been written in our previous article on JTM.
Of course, the statutory requirement provides the operating framework for banks, so some credit institutions may apply stricter criteria than those required by regulation. There are banks that rely on the maximum repayment limit of $ 50,000 allowed by law when calculating the JTM ratio, but there are also financial institutions that basically use an interest-based installment (approximately $ 73,000) as if the claimants had not paid Baby loan waiver interest rate terms.
What can you do if you want to borrow a baby support?
It is worth asking for help from credit brokers who can tell you the terms and conditions under which each financial institution provides Baby Care and loans. The maximum amount of credit that can be taken is calculated. They help you combine individual government grants (CSOK, village CSOK, Baby Waiting Support) and do it for you at no cost.
Please fill out our form and our credit broker will be looking for you!