Community Deposits and Loans

Mentor and Sector programs

The world which develops around us is built on loans mostly. With the participation of our clients, we provide resources for initiatives which have a beneficial impact on our society and environment.

The depositors of the community bank are entitled to determine and monitor what happens to their money, and whose loan they make more favorable.

At the time of placing the deposit, the owners of a MENTOR deposit may select the conditions of which loan pertaining to one of our loan recipient clients they wishes to make more favorable with their deposit.

At the time of placing the deposit, the owner of a SECTOR deposit may choose from the loan purposes which we support (e.g. Bio-agriculture), and the bank will allocate a loan in the specific sector from the deposit.

Deposit owners can determine the rate of the interest paid on their deposit within a specified range: they may even choose an interest lower than the market interest if they wish the specific recipient’s loan to have even more favorable conditions.

How can you help loan recipients by placing a deposit?

By Mentor community deposits, our clients are entitled to provide certain projects with favorable loan opportunities, while the deposit owners are entitled to normal market deposit interest, at their own choice. In case of the Mentor Community Deposit the linking of the three seemingly separate interest groups (i.e. the deposit owner, the bank and the loan recipient) is achievable. Thus, our clients provide resources by their deposits to local businesses operating in line with the principles of sustainability.

Our deposit owner clients considerably contribute to the reduction of the loan burden borne by our loan recipient clients. At the time of placing a MENTOR deposit, our clients may select themselves the loan recipient to which the bank shall provide a loan from their term deposit. Subsequently, the bank allocates a loan exclusively for the specified purpose. This way the deposit owners can be certain that, while their money is resting in the bank, it supports the objective of their choice to be achieved.

At the same time, our Mentor borrowers have the opportunity to reduce the interests of their loans. In case our clients place deposits in support of the loan of a borrower of their choice, the loan costs of the borrower will be reduced. For this purpose, upon their authorization, we disclose certain data of our loan recipient clients in order to ensure that our deposit owners have the possibility to become acquainted with the beneficiary or the initiative of their choice.

You may find further information on Mentor loan recipients from which you may select and on the savings realized by the term deposits on our Hungarian website.

Discounts

The interest discount of loans achievable through Mentor deposits is composed of two parts:

  • Automatic monthly interest discount provided by MagNet Bank (0.5% community interest discount on the amount of term deposits)
  • With the assistance of the bank, Sector loan recipients are provided with a discount by the allocated deposits even if the deposit owner chooses the regular market interest. If the deposit owner forgoes a portion of this interest, the loan costs of the loan recipient are further reduced.

Application

Each loan offered by our bank can be converted into a Sector loan.

Our loan recipient is entitled to apply the Sector loan structure to its loan on the condition of exempting the bank from the obligation of bank secrecy in the course of the conclusion or amendment of the loan contract. The exemption from the obligation of bank secrecy covers the loan recipient’s name, the amount of the loan and the purposes of the loan. We disclose this information in our bulletin and on our website in order to ensure that our deposit owners have the possibility to become acquainted with the private individuals and organizations as beneficiaries and their projects.

For further information, please contact our bank consultants who will gladly assist you.

How can you help loan recipients by placing a deposit?

By Sector community deposits, our clients are entitled to provide certain fields of operation with favorable loan opportunities, while the deposit owners are entitled to normal market deposit interest, of their own choice.

Our deposit owner clients considerably contribute to the reduction of the loan burden borne by our loan recipient clients. At the time of placing a SECTOR deposit, our clients may select themselves the specific sector to which the bank shall provide a loan from their term deposit. Subsequently, the bank allocates a loan exclusively in the specified sector. This way the deposit owners can be certain that, while their money is resting in the bank, it supports the objective of their choice to be achieved.

At the same time, our SECTOR borrowers have the opportunity to reduce the interests of their loans. In case our clients place deposits in support of a specific sector of their choice, the loan costs of the borrower will be reduced. For this purpose, upon their authorization, we disclose certain data of our loan recipient clients in order to ensure that our deposit owners have the possibility to become acquainted with the beneficiary or the initiative of their choice.

The deposit owner does not take any risks in case of non-payment of the loan, meaning that a Sector deposit is a simple form of savings secured by the National Deposit Insurance Fund of Hungary (NDIF).

You may find further information on Sector loan recipients from which you may select and on the savings realized by the term deposits on our Hungarian website.

The main loan purposes, areas, sectors supported by us

Bio-agriculture

This includes the financing of companies and projects which apply technologies based on organic fertilization, biological insecticides, and natural biological cycles, in a certified and attested manner, and avoid the usage of artificial fertilizers and insecticides.

Environmental protection and nature conservation

These developments serve the protection of the natural environment against various impacts, damage, as well as its conservation.

Green energy

These companies apply technologies of energy management, in the course of which energy production is based on the circulation of natural resources, and do not damage or further deplete the normal natural, energy (fossil) reserves of the Earth.

Job creation

Such developments and expansions are implemented with the help of the loans received, by means of which the company creates new jobs.

Research and Development

We finance companies, the activities of which are directed at the targeted, systematic expansion of the creative knowledge base, in the course of which new products are designed and introduced to the market.

Healthcare and social services

By financing the company, healthcare and social services to people are improved, expanded, as well as a healthier, more human environment is developed.

Culture and education

The development and financing is targeted at improving, broadening the general educational level. In order of that, the range of cultural services and their accessibility will be diversified.

CDP – Support fund of civil society organizations

Within the framework of the Community Donation Program (CDP), our clients have the opportunity each year to exercise their right to dispose over 10% of our bank’s profit, and decide which public benefit organization they wish to support by offering 10% of their portion of profit.

Discounts

The interest discount of loans achievable through Sector deposits is composed of two parts:

  • Automatic monthly interest discount provided by MagNet Bank (0,25% community interest discount on the amount of term deposits)
  • With the assistance of the bank, Sector loan recipients are provided with a discount by the allocated deposits even if the deposit owner chooses the regular market interest. If the deposit owner forgoes a portion of this interest, the loan costs of the loan recipient are further reduced.

Application

Each loan offered by our bank can be converted into a Sector loan.

Our loan recipient is entitled to apply the Sector loan structure to its loan on the condition of exempting the bank from the obligation of bank secrecy in the course of the conclusion or amendment of the loan contract. The exemption from the obligation of bank secrecy covers the loan recipient’s name, the amount of the loan and the purposes of the loan. We disclose this information in our bulletin and on our website in order to ensure that our deposit owners have the possibility to become acquainted with the private individuals and organizations as beneficiaries and their projects.

For further information, please contact our bank consultants who will gladly assist you.