Hungary’s Baby-Expecting Loan: Who can apply and how it works in 2025
Introduced in 2019, the Baby-Expecting Loan (Babaváró Hitel) is one of Hungary’s flagship family support measures. It provides an interest-free loan for young couples planning children, with generous repayment benefits tied to childbirth.
Below, we explain how the program works in 2025, who is eligible, what benefits are available, and what has changed compared to previous years.
What is the Baby-Expecting Loan?
The Baby-Expecting Loan (Babaváró Hitel) is a subsidised personal loan of up to HUF 11 million (approx. EUR 28,000). The loan is available to married couples and involves interest subsidy and loan forgiveness if the couple has children.
Key features of the loan:
- Available to married couples only
- The wife must be under 35 years of age
- Interest-free repayment from the start through government-funded interest subsidy
- Maximum amount: HUF 11 million (approx. EUR 28,000)
- Maximum term: 20 years
- Freely usable (no specific purpose required)
- If a child is born within 5 years, the loan remains interest-free
- Repayment may be suspended for 3 years after the birth of a child. (The suspension is not automatic, it must be requested by the borrower.)
- 30% of the loan is forgiven after the birth of the second child
- The entire remaining loan is forgiven after the birth of the third child
What’s new in the eligibility criteria?
The eligibility criteria have changed since the Baby-Expecting Loan was first introduced. One of the most significant changes relates to the age limit for female applicants.
Originally, the age limit for women was 41, which was later reduced to 30, with an exception for those who were already pregnant. Currently, women must be under 35 to apply for the loan. A confirmed pregnancy of at least 12 weeks no longer qualifies as an exception for women over 35.
The maximum amount of the loan has been increased from HUF 10 million to HUF 11 million (from approx. EUR 25,000 to 28,000). The monthly repayment must not exceed HUF 51,000 (approx. EUR 127.50).
Who can apply for the Baby-Expecting Loan?
Eligibility criteria:
- The loan is available only to married couples (as joint applicants)
- Applicants must be Hungarian citizens or permanent residents in Hungary
- Positive credit history
- Clean criminal record
- No outstanding public debt exceeding HUF 5,000
- At least 3 consecutive years of social security coverage in Hungary (with no break longer than 30 days)
What can the Baby-Expecting Loan be used for?
The Baby-Expecting Loan (Babaváró hitel), unlike many other family support loans, is a free-use personal loan. The funds can be used without restriction; however, many couples choose to spend it on buying or building property, or on home renovations.
Other popular uses include:
- Purchasing a car
- Starting a family business
- Paying off existing debts
How does the Baby-Expecting Loan repayment and forgiveness work?
The Baby-Expecting loan offers a three-tier benefit structure based on the number of children: interest subsidy, loan forgiveness, and repayment suspension.
Unlike the Family Home Loan (CSOK Plusz), the Baby‑Expecting Loan does not require applicants to declare in advance how many children they plan to have. At least one child must be born after taking out the loan to qualify for the benefits, and additional support is granted for each additional child.
Here’s how the benefits are structured:
- Interest-free repayment from the start
- First child within 5 years: 3-year repayment suspension and the loan remains interest-free
- Second child: 30% loan forgiveness and 3-year repayment suspension
- Third child: full loan forgiveness
If no child is born within five years of the loan agreement, interest is charged retroactively, and the loan continues with interest.
Applying for the Hungary’s Baby-Expecting Loan
- Couples may apply for the Baby‑Expecting Loan at a commercial bank
- The interest rate is fixed and identical across all banks
- Applicants must pass the bank’s credit assessment
- The loan is disbursed by the bank
- The government covers the interest by paying a subsidy directly to the bank
Can the Baby-Expecting Loan be combined with other support programs?
Yes, it can be combined with the following:
- Family Home Loan (CSOK Plusz)
- Rural Family Subsidy (Falusi CSOK)
- Home Renovation Subsidy (Otthonfelújítási támogatás)
- Young Workers’ Loan (Munkáshitel)
- Home Start Loan (Otthon Start hitel)
Bank Requirements and Credit Assessment
The program is state-backed, but the actual lending process is handled by commercial banks.
Banks may set their own:
- minimum income requirements
- credit assessment criteria
- additional documentation requirements
It is advisable to compare offers from different banks before applying.
Has Hungary’s Baby-Expecting Loan been a success?
Although the Baby‑Expecting Loan has been one of the flagship programs of Hungary’s family support policy, its success is not clearly supported by demographic data.
The country’s fertility rate stood at 1.51 when the loan was introduced. This figure rose to 1.61 by 2021, but has since begun to decline again, falling to 1.39 by the end of 2024.
Concerns and criticism
While the Baby‑Expecting Loan has supported thousands of young families, critics have raised concerns about the following issues:
- Rising housing prices, partly fuelled by such subsidies
- Unequal access for low-income families and single parents
- Potential misuse due to the lack of spending restrictions
Frequently Asked Questions (FAQ)
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What happens if the couple divorces?
Repayment benefits may be lost, and the loan can revert to a standard personal loan with interest.
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Can one apply if already pregnant?
Yes. If the pregnancy is at least 12 weeks along at the time of application, the couple is considered to have fulfilled the childbearing requirement. In this case, the loan will remain interest-free for the entire term.
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Can a couple apply if they already have children?
Yes. However, a new child must be born after signing the loan agreement for the loan to remain interest-free.
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Can a couple apply if they are not legally married?
No. A legally registered Hungarian marriage is required.
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Is it worth applying if the couple is unsure about having children?
There is a financial risk: if no child is born within five years, the loan becomes interest-bearing and must be repaid in full.
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