Folyószámlahitel

Folyószámlahitel, often translated as an overdraft facility or line of credit, is a financial product offered by banks in Hungary. It allows account holders to withdraw more money from their current account than is actually available within it, up to a pre-agreed limit. This temporary financial flexibility is designed to help individuals and businesses manage short-term cash flow shortages or unexpected expenses.

When a folyószámlahitel is utilized, the bank essentially extends a short-term loan to the account holder. The amount borrowed beyond the account balance accrues interest, typically calculated on a daily basis. The interest rates for folyószámlahitel can vary significantly between financial institutions and are often higher than those for other forms of credit. In addition to interest, banks may also charge arrangement fees or other associated costs.

The repayment of the borrowed amount is usually flexible. As funds are deposited into the current account, they are automatically used to reduce the outstanding overdraft balance. There isn't a fixed repayment schedule in the same way as a traditional loan; however, the bank will expect the overdraft to be brought back within its limit periodically. Exceeding the agreed limit can result in penalty fees and may impact the account holder's creditworthiness. Folyószámlahitel is a useful tool for managing immediate liquidity needs but should be used with caution due to its cost and the potential for accumulating debt if not managed properly.