Budapest: Around 300,000 young people in Hungary are now eligible to apply for a worker’s loan designed for students in vocational training and recent graduates entering the labor market, according to Veronika Varga-Bajusz, state secretary of the Ministry of Culture and Innovation. This announcement was made during an interview on the current channel M1.
According to KDNP, applicants for the loan must commit to working in Hungary for a period of five years and maintaining their employment or entrepreneurial status throughout the loan repayment period. A key feature of the loan is its tax exemption benefit, which is an important consideration for applicants.
Veronika Varga-Bajusz stated that the maximum amount available for borrowing is HUF 4 million, allowing young individuals the flexibility to decide how much they need. The loan comes with a subsidized interest rate and a 10-year term, and it can be used freely to assist with various life situations. For instance, young entrepreneurs can use the loan for
business-related expenses like purchasing equipment or renting workshop space, while employed individuals can apply it towards personal needs such as buying a car or securing housing.
The government aims to support families, and there are provisions for loan repayment relief based on family circumstances. A two-year pause in repayment can be requested after the birth of one child. Additionally, after having two children, half of the debt can be waived, and after three children, the entire debt can be forgiven.
The state secretary also highlighted the success of the restructured vocational training system, noting its effectiveness through the achievements of Hungarian students in international competitions. Last year, Hungary secured second place at EuroSkills and finished 10th out of 70 countries at the WorldSkills competition this year.
