Money Management

Can I get a payday loan as a public worker?

The minimum wage and the average wage in Hungary have also increased in recent years, but this has not kept pace with the wages of public employees, so it is not easy for anyone who wants to take a loan with such an employment relationship. According to the data of the HCSO, the gross income of a full-time public employee is HUF 81,356, which is a net income of HUF 54,102 – the average amount received by a public employee in August 2018.

More than that, the public workers who are entitled to guaranteed public employment wages are those who are skilled workers. In 2017, they made a gross monthly income of 106,555 forints, which is 70,859 forints in net terms. Employers receive slightly more than the average wage of a public employee: their gross public wage is gross HUF 89,705 per month (net HUF 59,654). Among public workers, the highest guaranteed wage payable to public employees is that they earn gross $ 117,245; this equates to a net amount of $ 77,968.

Most credit institutions impose a condition on how much net income we need to apply for a payday loan – we looked at which bank has enough public-service wages to sign a contract.

Popular Deals: The Most Affordable Free-to-Use Payday Loans

Popular Deals: The Most Affordable Free-to-Use Personal Loans

When applying for a payday loan, banks take into account two determinants: continuity of employment and net certified income. Low income is the biggest problem for public workers, and it can also make it difficult to apply for credit because many municipalities employ them for seasonal work, which does not provide them with the continuous employment they expect from banks. With these conditions in mind, we looked at the options available to a public employee for borrowing $ 500,000 for a 60-month term.

Need a freelance loan? Compare the best deals currently available with the payday loan Calculator and choose the one that suits you best!

If you need a smaller amount – a quick loan can be the solution

If you need a smaller amount - a quick loan can be the solution

The types of instant loans available on the market can be classified as freelance payday loans, but they are different in some ways:

  • the loan application process is faster, you can get the money within one business day after you apply for the loan,

  • a quick loan is used to deal with temporary financial difficulties, so you can apply for a lower amount,

  • short maturity: instead of years, months or even weeks are just available for repayment,

  • you typically have higher costs for hiring, as speed comes at a price.

We looked at the opportunities available to those who work as a public worker for a smaller amount of credit. For a $ 300,000 loan, we compared current offers from credit institutions with a 36-month maturity.

Banks set similar terms for short-term loans based on the expected minimum income as they do for larger payday loans – typically, you need to earn between $ 25,000 and $ 150,000 to qualify for a loan and at least $ 500 to get the best deals we have to look for.

A company specializing in instant loans

A company specializing in instant loans

However, Good Finance, a company specializing in instant loans, offers loans to customers under less stringent conditions: there is no minimum income requirement and it is sufficient to provide proof of one month’s employment. However, this leniency comes at a cost: quick loans are generally more expensive than payday loans on favorable terms.

Good Finance is offering instant mortgage with 24.82 percent APR with weekly repayment. In this case, you would need to pay back your weekly installment of $ 4,849 for 72 weeks. This means that at the end of the term we have to repay $ 349,128. Check out Good Finance offers here!

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