New loan products are constantly appearing on the market with more favorable terms. Therefore, it is not at all surprising that many borrowers are seeking to change their lending terms. This can be done.
It is necessary
- - loan agreement;
- - application for refinancing;
- - an extract from the bank on the balance of the debt;
- - documents confirming the identity and income of the borrower.
Instructions
Step 1
If for some reason you cannot repay the loan under the previous conditions, then you must first contact the bank that provided you with the loan. Some banks go to meet their borrowers and allow them to temporarily not pay on the loan, giving him credit holidays, or reduce the monthly payment, due to the increase in the loan term. At the same time, banks rarely go to change the interest rate, because this deprives them of some of the profits. On the other hand, it is unprofitable for banks to lose their reliable borrowers and in some cases they satisfy the request to reduce interest rates.
Step 2
Some banks directly prescribe in the loan agreement a prohibition on changing its terms. But the borrower can contact a third party bank for a purpose. True, this is only available to bona fide borrowers who did not allow delays in payments.
Step 3
Today, banks are offering a special product that allows you to change the terms of the loan. It is called refinancing or refinancing. This is a relatively new proposal, but it is gaining more and more popularity among Russians. Such programs allow banks to attract bona fide borrowers and improve their loan portfolio. Refinancing programs are often used by borrowers with large loans (mortgage or car loan), as well as those who want to combine several loans into one.
Step 4
Refinancing programs allow you not only to get more favorable interest rates on a loan and thereby reduce the amount of overpayment. They may also be of interest to borrowers who find themselves in financial difficulty. Indeed, thanks to refinancing, you can increase the loan term and reduce monthly payments. Refinancing is also suitable for those who intend to change the currency of the loan. Due to fluctuations in exchange rates, such a loan may become unprofitable over time.
Step 5
To refinance a loan, initially contact your bank and take a certificate of the balance of the debt, as well as the payment schedule. It will not be superfluous to get a certificate of the absence of delinquencies, this will significantly increase the chances of refinancing approval.
Step 6
Next, you need to apply for refinancing, as well as provide the required package of documents. For a bank that is engaged in on-lending, the provision of such a loan is tantamount to the issuance of a new loan. Therefore, the borrower will be required to confirm their solvency.
Step 7
If the refinancing is approved, it is necessary to notify the primary creditor and the intention to fully repay it ahead of schedule. The borrower's application for early repayment of the refinanced loan is sent to the refinancing bank with the bank's mark on its acceptance.
Step 8
On the set date, the refinancing bank transfers the money to the primary creditor. After that, you can start paying the loan under the new conditions.
