An increasing number of people in Russia are using loans. It can be consumer loans, credit cards, car loans and mortgages. On the one hand, this is a great help in order to buy a thing and start using it. On the other hand, interest rates on loans are quite high. Therefore, by the end of payments, the purchase rises in price by about three times.
Life is such that sometimes situations happen that do not depend on the person. Due to events, he loses the opportunity to repay the loan in good faith. What to do in order not to lose not only your good name, but also your blood-acquired property? In this case, refinancing of loans of other banks can help. The number of organizations that offer lending services is growing.
Definition
Some banks offer refinancing loans to other banks. Not all citizens know what it is and how it can help them in this situation. After all, experts are already sounding the alarm: Russia's population has been re-loaned. Every second family has monthly payments that are significantly higher than income. In this regard, there are numerous delinquencies in loans.
Refinancing a loan is obtaining a loan from another bank on more optimal conditions that provide the possibility of repayments. In other words, this is a loan to repay existing debt to another institution. Moreover, often a person takes a loan at a lower interest rate, which significantly reduces the monthly payment on it. Or the payoff period is longer. It is also convenient if there are several loans at different banks. Thus, they are combined into one.
This is the most optimal solution for those who, due to circumstances, cannot pay the existing debt in the previous amount. Interested borrowers, for whom a reputation is important, are pleased to take advantage of refinancing.
Benefits of Refinancing
To date, some borrowers have managed to appreciate the merits of refinancing. After all, a person is given the opportunity to repay an old loan to a new one, which is concluded taking into account his requests. This also includes refinancing mortgages from other banks. What are the positive aspects?
1. It is possible to choose an institution that offers this service in the financial market. This can be not only the banking institution that issued the loan earlier, but also any other.
2. There is a chance to conclude a contract with a low interest rate on the loan.
3. The size of the monthly payment is reduced due to the extension of the contract.
4. You can get an amount sufficient to pay off existing debt, secured by any property.
5. It is possible to combine smaller loans from different banks into one. This saves time on repayment of all loans.
Where to get refinancing
A growing number of institutions are ready to offer their assistance in refinancing loans. The growing popularity of this service is explained by the fact that a person is looking for the most optimal conditions, and banks, in turn, offer their products to attract customers. In addition, the economic situation inside the country also affected the active growth, as the number of delinquencies in loans at various banks increased sharply.
Refinancing procedure
In most cases, the collection process does not require the collection of all certificates and documents. However, there are subtleties. What does a borrower need to do to get refinancing of consumer loans from other banks?
- After making a decision on on-lending, the borrower needs to choose a bank. This may be the same bank or another third-party institution.
- To study all the conditions for the provision of services and choose the best option.
- After this, you need to contact a banking institution with a request for re-lending.
- If the choice fell on a third-party bank, you will need to bring a certificate from the creditor bank on the amount of debt.
- After approval, the institution offers the most optimal selection of loan products.
- A new contract is concluded, which removes the previous loan obligations from the borrower. But new obligations are being imposed that will need to be fulfilled.
The disadvantages of on-lending
Of course, along with the merits, any loan product has its drawbacks that customers need to know. Indeed, in any business it is necessary to make decisions thoughtfully and carefully.
Disadvantages:
- Some banks charge a high commission from the client. Whether it’s a premium, a registration fee, or something like that. The amount is calculated individually at a banking institution.
- In some cases, you need to collect a standard package of documents.
- The borrower may have more stringent requirements: a good credit history, the absence of other loans and so on.
Refinancing Service: Bank Requirements
Assistance in refinancing loans is gaining popularity again and covers not only consumer loans, but also credit cards and mortgages. Moreover, according to experts, long-term loans can be refinanced several times.
To provide the service, it is necessary that the loan validity period be at least six months. It is also advisable that during this time there are no delays in it. The most attractive for lending is a mortgage, which makes it possible to receive income for a long time. No less interesting is a car loan.
Credit cards are beneficial for the borrower, since after refinancing the monthly payment is fixed. The card then blocks or closes. That is, by closing the credit card with the help of refinancing, the borrower loses the right to use the limit. Some banks may provide overdue loan refinancing. True, they should not be long.
VTB24 Products
Do not confuse VTB24 with VTB. Credit refinancing is provided in the first bank. For registration, you must provide a minimum package of documents. All you need is a passport and all the loan documentation: contract, payment schedule, balance sheet. For credit cards, you must provide a certificate of the amount of the loan balance.
The term of the loan agreement is at least six months. In this case, the delay is not welcome. It is worth noting that you can make an application by phone. The bank provides an opportunity to combine several loans from different institutions into one. This will further save time on a trip to the banks. In addition, the size of the monthly payment is significantly reduced.
The maximum loan balance should not exceed 750 thousand rubles. The loan term is from six months to 5 years. The interest rate is considered for each client individually.
Re-lending at Sberbank
More and more people are paying attention to refinancing loans from other banks. Sberbank offers more favorable terms for this product. Previously, the institution was engaged in re-lending only mortgages and construction. Now the product line has expanded, all the main loans used by the population have been included. The minimum amount of debt is not less than 45 thousand rubles.
When registering, the borrower must submit a bank statement on the amount of the outstanding balance. In addition, this certificate must indicate the bank details, rate, rate of validity of the contract. Also, notifications about income from the place of work, passport will not be superfluous.
The maximum amount of debt is not more than 1 million rubles. The loan term is similar to the term in VTB24. However, the rate is much lower. It is worth noting that the existing deposit in Sberbank will not play a role in reducing the rate. Benefits will be provided only to holders of salary cards. The age of the client is 21-65 years. After approval, the entire amount is transferred to the account of the loan agreement.
Alfa Bank Help
Alfa Bank mainly takes only large loans, such as a mortgage. They are more profitable. It is worth remembering that refinancing a loan from other banks, when half the term has already passed, is unprofitable for the borrower. After all, the bulk of interest is accrued at the very beginning of the term. The second half is used to pay off the main debt.
In this bank, the rate is the lowest. That is, it is at an average level in relation to mortgage lending. Refinancing own loans by a bank cannot be called full-fledged re-lending. Against the background of current events, such a service should be considered as a restructuring. But the borrower must confirm that his income has declined.
Who benefits from refinancing
For those who have arrears, it should be noted that refinancing of overdue loans from other banks requires the submission of a full package of documents to confirm their solvency. Without this, no bank would agree to borrow the debt of a borrower.
Re-lending is beneficial in cases where it is necessary to withdraw property from the pledge. That is, it is actively used to close a loan, where the property is secured. When refinancing, no collateral is required. Therefore, the subject of the pledge becomes the property of the borrower.
Refinancing loans from other banks is beneficial not only for the population, but also for financial institutions that have begun to actively attract customers from competitors. All this is connected with the revocation of bank licenses. Each of them tries to stay on the market thanks to profitable customers with loans. In this case, preference is given to borrowers with large loans.
Should I go for refinancing
Everyone answers this question himself. If the borrower is sure that the interest on the loan, to put it mildly, is “draconian”, or the size of the monthly payment was too much for life, it’s worth looking at the offers of other banks.
However, the client must have a good credit history, which can establish him as a responsible payer. It is important to remember that the amount of the monthly payment should not exceed half of all income of the borrower. The presence of dependents should also be taken into account. Bank employees will calculate the monthly payment so that the normal life of the client does not suffer.
Modern Internet resources make it possible to independently calculate all expenses and choose a loan that can be done. In many cases, the monthly payment amount is significantly reduced when the contract is revised.
Many took advantage of the offer of "refinancing a loan." Customer reviews of banks indicate favorable conditions. Many borrowers got the opportunity to breathe more freely after force majeure situations in life. In particular, this concerns the reduction of family income.
According to experts, refinancing has a beneficial effect on the economy. The number of bad loans that prevent people from living more freely is decreasing. Thus, they get the opportunity to close an existing loan with high interest rates and pay less.