The economic crisis creates a demand for such type of banking services as refinancing. The opportunity to take a loan on more favorable terms may be of interest not only to those clients who are in a difficult financial situation. Rational borrowers see in such loans a way to save their own financial resources.
Internal refinancing
Many banks offer internal refinancing of loans for individuals. The borrower receives a certain amount on more loyal terms, which should cover the old loan.
A financial institution renegotiates a contract with a client that sets new deadlines and interest rates. A very convenient mechanism to reduce costs and improve the quality of life.
As a rule, a bank agrees to a loan, if there is a real need for it. In case of a change in the financial situation of the client, the bank will agree to re-sign the loan agreement. Such a prospect is more acceptable than engaging in litigation in the future if the borrower cannot pay at all.
Sometimes refinancing loans for individuals is offered to bona fide payers as a pleasant bonus. Reducing the rate and size of payments can significantly ease the financial burden.
External refinancing
Not always a banking institution is ready to meet the needs of a client in need of lower interest rates. Mortgage refinancing for individuals becomes possible only when applying to another organization.
The borrower is not required to inform the lender of his intention to refinance. The client has every right to do so.
If it is difficult to choose the right bank, it is worth using the services of a broker. He will help to apply to different institutions, select the optimal payment conditions. Of course, such brokerage assistance is not free. You will have to pay from 1% to 10% of the requested amount to the consultant. Not too cost-effective, but in some situations, a specialist can provide real assistance.
Required documents
Refinancing loans from other banks to individuals is sometimes carried out according to a simplified scheme. Indeed, at one time another bank had already made a positive decision on the loan, and financial employees have reasons to trust this opinion. The client will need a previous loan agreement, all receipts for payment, identification documents and a certificate of income.
It should be borne in mind that a tarnished credit history, a lack of regular work and delays in a previous loan can become a serious obstacle to a positive resolution of the issue.
Terms of refinancing
Each banking organization has its own conditions for refinancing a loan for individuals. But everyone has common features. You can start the procedure after at least 3 months after taking a loan. No delays should be allowed during this time. The amount of debt exceeds 50,000 rubles, and at least 7 months remain before the payment is completed. The client who submitted the application must not be older than 65-75 years at the time of payment completion.
It is also necessary to provide a certificate of the amount of debt. As a rule, this document is provided free of charge at any lending institution.
If a guarantor is involved, a full list of documents will also be required from him.
Therefore, do not confuse refinancing of individuals' loans with restructuring. The latter is carried out in conditions of the inability of the client to pay a monthly payment and requiring a significant reduction in the amounts payable. Re-lending is a rational decision made by the borrower in order to reduce the financial burden on their own budget.
How is the process going?
Having decided on the bank in which the individual will refinance the loan, all the necessary documents are collected. After that, an application is submitted, which the institution considers within a few days. In the case of a positive decision, the client either receives cash on hand, or money is transferred to the account of the old lender.
After completion of the procedure, the borrower agrees to fully comply with all obligations under the contract in a timely manner.
Merger of several loans into one (loan on credit)
It happens that an individual has several active loans at banks or MFIs. A very dangerous situation for the financial situation, since it is likely that after some time there will simply be nothing to pay such an amount of loans.
Some banks offer programs that allow you to combine all these loans into one large loan with a minimum interest rate. It is better not to delay the decision and apply for refinancing as soon as possible. This will protect you from the numerous fines that will inevitably arise in the event of the slightest delays.
Will Sberbank help?
Individuals can refinance loans at Sberbank by submitting an application to the local branch. This financial institution offers a solution to monetary problems in several areas: on-lending to consumer and housing loans, debt debit card overdraft. Clients get the opportunity not only to lower the interest rate, but also, if necessary, to take their car out of burden. It also offers the service of combining several loans into one large loan.
The cost of a future loan is determined individually by the bank; it can range from 17% to 29% of the amount. It is possible to repay such a loan in an annuity way (in equal installments).
To refinance loans at Sberbank, individuals must fill out an application form, which indicates all personal data. It is necessary to indicate the address of registration and actual residence (if they differ), telephone numbers for communication, data on the composition of the family. Information is also provided on the presence or absence of property, income level and seniority.
Sberbank loan terms
The lending program of this organization determines that the loan term can be from 3 to 60 months. You can get on hand cash in the amount of up to 1 000 000 rubles. The age of the potential client should not be less than 21 years and not more than 65 years by the time the loan repayment term expires.
The loan is granted to all residents of the Russian Federation who have submitted an application and satisfy the requirements of Sberbank. Cash withdrawal is made within 30 calendar days from the date of the adoption of a positive decision on the application. Repayment is made in equal monthly installments.
What does the Bank of Moscow offer?
Any citizen of the Russian Federation can use the services of this large financial organization. Bank of Moscow loans are refinanced under certain conditions.
Everyone in need can reduce the size of the credit rate with the subsequent relief of the debt burden. The Bank offers amounts ranging from 100,000 to 3,000,000 rubles. The size of the bet is determined individually. If the loan is in the range of 450,000 rubles, then lending takes place at 18.5% per year. The maximum rate is 21.9%. The borrower has the right to choose the term for which the loan is issued. It should be between 6 and 60 months.
The refinancing procedure in the Bank of Moscow is quite simple. The client contacts the local office with a statement. You can fill out a form or apply on the official website of the company. When making a positive decision, the manager makes an appointment with the client and tells you what documents to take with you.
The Bank of Moscow conducts refinancing of loans to individuals with several active loans. In this case, it is necessary to prepare a complete set of documents for each of the loans. The client may request an amount in excess of the amount of the existing debt and use the balance for their own purposes.
Cons of the procedure
Before contacting the appropriate institution, you should be aware that refinancing loans from other banks to individuals carries with it some negative aspects.
Among them are additional costs, the occurrence of a possible significant overpayment and the need to draw up a new insurance product. You will have to face another paperwork, which takes time and effort.
Reviews on refinancing loans to individuals vary. They are united only by the moment that the customers who approached the issue with all responsibility were satisfied with the result.