According to statistics, every fourth borrower periodically faces problems with loan payments. In a difficult financial situation, the question of the possibility of obtaining a deferred payment is especially relevant.
Credit Holidays
If a difficult financial situation arises (for example, if you lose your job), you can try to arrange a deferral for loan payments. Initially, it is worth studying the loan agreement, which may spell out the conditions for granting a grace period. Banks often refer to them as credit holidays. During this period, the bank may allow, for example, not to pay the principal debt, but to make payments only on loan interest.
The borrower should take into account that after the end of the loan holidays, the cost of loan payments will be increased, and a fee for deferring loan payments will be included.
Loan restructuring
If the loan agreement does not contain provisions on the provision of deferrals for payments, then you should try to ask the bank to amend the terms of loan repayment. This process is called credit restructuring.
To obtain restructuring, you need to contact the bank with a request to reduce the amount of monthly payments and increase the term for payments on the loan. It is necessary to attach documents confirming the occurrence of financial difficulties. For example, a child's birth certificate, an order to dismiss a job, a certificate of illness, etc.
The bank will take into account the previous credit history of the borrower and the absence of loan delinquencies. It should be borne in mind that banks do not always meet borrowers halfway. After all, the decision to restructure is a right, not an obligation of the bank. Moreover, for many banks, fines and penalties for late payments are additional earnings.
If the bank issued a negative verdict regarding the possibility of refinancing, then you can contact another bank and refinance the loan. Thanks to this, the borrower has the opportunity to get a new loan to repay the old one on more favorable terms. Refinancing allows you to reduce the amount of the monthly payment, or the interest rate.
Deferral of payments in court
The bank may not only refuse to meet the borrower, but also sue him to collect the amount of the debt, as well as penalties and fines. In this case, the borrower can file a counterclaim for the provision of an installment plan. If the reason why he is not able to pay the loan is recognized by the court as valid, he can assign him an installment plan for a certain period.
In any case, the borrower must try to avoid loan delinquencies and not miss payments. In extreme cases, it is worth paying at least part of the monthly payment to cover the loan interest.
