Refinancing a loan is an opportunity to get a new loan on more favorable terms for the borrower, namely, to issue a loan at a rate lower than the current one, increase the loan term for a new loan, change the amount of the monthly payment, as well as the opportunity to resolve the problem with overdue debt on the existing loan. In other words, it is a re-lending. You can refinance a loan both at the bank serving you and at another banking institution.
In any case, if you want to refinance a loan in a bank serving you, you need to write an application in writing in an arbitrary order, state the reason for refinancing and submit an application to the bank.
The text of the application can be, for example, the following: “I am a borrower of your bank, I pay the loan and interest on time (or with debt) under the loan agreement No. _, drawn up on (date, month, year). The loan rate is _% per annum. Currently, your bank provides loans at _% per annum. Please consider the issue of reducing the interest rate on the loan to _%. or “I ask you to increase the term of the existing loan by (the term is indicated) and set a monthly payment in the amount of (the payment amount is indicated)” or “I ask you to restructure the overdue loan due to the difficult financial situation”.
To obtain a loan (refinancing) in another banking institution, you need to provide a package of documents as for obtaining a new loan, most often it is: a passport, a second document, a copy of a work book and a certificate of income confirmation.
