The problem of reducing loan payments can be relevant both for those who are just planning to get a loan, and for those who have a valid loan on hand. There are several ways to reduce the size of loan payments.
It is necessary
- - credit programs of banks;
- - documents confirming income;
- - documents for pledge and surety;
- - application for refinancing or surety.
Instructions
Step 1
If you are just planning to take out a loan, there are several ways to reduce your monthly payments. The best option is to choose the most loan program with a low interest rate for yourself. This will reduce the amount of interest paid on the loan, and, accordingly, payments. Borrowers can count on a lower rate if they are able to document their own
income, as well as those receiving a loan with the involvement of guarantors or registration of collateral. Such loans are associated with relatively low risks of non-payment for the bank, so it provides borrowers with more favorable offers. Providing a full package of documents will allow you to win back a few percent in your favor. Please note that if your goal is to reduce payments, do not use express loan programs.
Step 2
Reducing loan overpayment can be achieved when applying for targeted loans. In this case, the money is not handed over to the borrower, but immediately goes to the account of the supplier of goods. Interest on them is always less than on non-earmarked consumer loans.
Step 3
Another option to reduce loan payments is to take out a loan for a longer period. This will reduce monthly payments.
An additional benefit of this option will be that inflationary processes will gradually devalue the amount of payments. But you will have to go to an increase in the amount of overpayment on the loan.
Step 4
For lower loan payments, look for banks with annuity payment schemes. In this case, the loan is to be repaid in equal installments, which will include interest and principal payments. Of course, differentiated payments are distinguished by lower overpayments, but their initial size will be much higher. You should also try to deposit more than the required amount of monthly payments into the account, when possible. This will further reduce the size of payments.
Step 5
For those who already have a loan and are interested in reducing payments on it, the banks have developed a special product. It was called refinancing. Why do banks need it? Thus, they improve their loan portfolio and entice bona fide borrowers from competitors. Refinancing a loan allows you to reduce payments due to an increase in terms or a decrease in interest rates. It can be issued at any bank that provides this service.
Step 6
There is also an option for a temporary reduction in payments, which may be relevant for borrowers who doubt their ability to continue making interest payments. In this case, you must contact your own creditor bank with an application for restructuring. Most banks will accommodate borrowers with good financial discipline, whose income has decreased for good reasons. For example, if you lose your job, replenish your family. When restructuring, banks can even provide temporary loan holidays.
