Hungary has launched a new "worker loan" programme to provide targeted support to employed young people aged 17 to 25. The interest-free loan, up to HUF 4 million (approximately EUR 10 000), can be used at the borrower’s discretion, whether for starting an independent life or launching a business. The programme, launched on January 1, 2025, aims to support young people as they transition into the workforce.
Who is eligible?
The loan is available to young people aged 17 to 25, with or without vocational qualifications. Applicants must be employed for at least 20 hours per week and demonstrate consistent income and creditworthiness.
- citizenship and residency: both Hungarian and foreign citizens are eligible, provided they have been working in Hungary for an extended period and have a registered Hungarian residence;
- employment status: applicants must not hold a higher education degree or be a current student;
What are the requirements?
Applicants must meet several requirements to be considered for the loan:
- a clean criminal record and no outstanding debts;
- employment for at least 20 hours per week with a consistent income. If self-employed, income must be equivalent to the average earnings for a 20-hour working week;
- provision of proof of employment, valid health insurance, and a consistent income (either through an employer's certificate or a bank statement).
What are the benefits?
The worker loan offers significant benefits to young people:
- interest-free: the loan is completely interest-free;
- unrestricted use: the loan can be used for any purpose;
- fixed repayments: borrowers benefit from fixed, equal monthly repayments;
- no collateral: no property is required as collateral;
- family support: women with children may receive additional support:
- one child: a two-year repayment deferral;
- two children: 50% of the outstanding debt may be waived;
- three children: the entire outstanding debt may be forgiven.
Early impact
The loan has quickly gained popularity, with the average loan amount requested nearing the maximum available. Young people are using the funds for a wide range of purposes, including business development, further training, housing, driving licences, and vehicle purchases.
Read more:
- Official government announcement of the worker loan programme
- Details and application process for the worker loan from OTP Bank, a leading Hungarian bank
| Please cite this news item as: ReferNet Hungary & Cedefop (2025, October 14). Hungary: worker loan supports young people . National news on VET. |