Loans have become an integral part of our lives. For the money borrowed by the bank, we buy cars, equipment and other expensive items. Some of the people have several loans, so it can be easy to get confused and miss a payment. And as you know, any violation of the terms for the return of bank funds may adversely affect the credit history of the borrower. Yes, and interest on loans run up. Refinancing of consumer loans in St. Petersburg will help to deal with your financial problems.
What is refinancing?
Refinancing loans in St. Petersburg, like any other city, helps borrowers to ease their financial obligations. The word itself is a derivative of two: the Latin "re", which means "repetition", and the words "financing". That is, it is a new loan in order to repay previous loan obligations. Very often it is called the simpler and more understandable word “re-lending”. Legally, refinancing means the issuance by one bank of funds (a special loan) to a borrower to repay one or more monetary obligations at another bank.
When refinancing is needed
Almost any responsible borrower can receive refinancing of consumer loans in St. Petersburg. But this is not always necessary. You can resort to getting a new loan from the bank in several cases. Suppose that a borrower took a loan at a certain percentage, for example, at 19%. He paid it regularly for several years, and after some time, financial institutions lowered the rate on loans to 15 percent per annum. Moreover, the principal amount of the debt has not yet been paid. Then you should contact the banks in St. Petersburg. Or if the borrower has several loan obligations in different banks, but at the same time regularly pays them. In this case, it also makes sense to combine all the loans into one.
Types of refinancing
Banks in St. Petersburg re-lend several types of loans. Most often, borrowers turn to credit organizations to repay consumer loans. He is the most popular. Due to the great demand, and, consequently, high competition in this area, banks offer their borrowers more favorable conditions. Mortgage refinancing in St. Petersburg is also in demand. The reason is the same. Remember how high the rate on mortgage loans was a few years ago. And what she is now. And such loans, as a rule, are taken for many years. Therefore, paying such a high percentage does not make sense, it is best to use the re-lending service. Refinancing is carried out on credit cards, as well as on car loans.
Who can get
Almost any borrower who is a client of the bank, both private and public, can receive refinancing of loans in St. Petersburg. The borrower must be an adult, have a permanent source of income, preferably confirmed. It is also necessary to be a citizen of the Russian Federation and have a residence permit in the region where the refinancing bank is present. A prerequisite for on-lending is a positive credit history. In the event that the borrower has delays in loan obligations, then most likely they will refuse to refinance it. It depends on the amount and duration of the delay. In cases where the delay in payment was no more than three days, the credit rating will not change for the worse. Well, if there are delays open or often repeated, then, most likely, the loan will be refused.
How to get the
Getting refinancing is not particularly difficult. It is fully consistent with a regular consumer loan. To apply for refinancing loans in St. Petersburg, you must provide the bank with a standard set of documents. It includes: the borrower's passport, certificate of pension insurance (SNILS), TIN certificate, driver's license (right to drive a vehicle). Also, the bank may require a salary certificate in the approved internal form or 2NDFL (personal income tax). If you wish, you can provide the bank with some more documents, they are not binding, but can have a good effect for a positive decision on the application. This is a certificate of ownership of real estate (required if the borrower takes a loan for refinancing a mortgage), certificate of ownership of the vehicle, passport, voluntary medical insurance policy. It should be noted that the passport must have marks on leaving for another country for the last six months or a year.
How to get without inquiries
Obtaining a refinancing of a loan in St. Petersburg without inquiries, of course, is possible. But it is worth considering that the loan amount should not be too large. And the interest rate on such re-lending will be slightly higher. But naturally, it will not exceed the amount of the annual interest rate on the previous loan. Without providing a statement of income, a new loan can be obtained from VTB-24 Bank and Sberbank, but only for an amount equal to the outstanding balance in another bank. If the borrower has a salary card of a bank that is engaged in refinancing loans, then he can receive re-lending without providing any references and additional documents. Orient Express Bank does not require the provision of certificates if the loan amount does not amount to three hundred thousand rubles.
Where to get
Banks give out money for refinancing loans in St. Petersburg mainly state-owned, but there are also a few private ones. A cash loan can be issued at a good twelve percent at Rosbank; at the same rate, a new loan can be obtained at Alfa Bank, and for up to seven years. Raiffeisenbank will help with a car loan.
Refinancing a loan in St. Petersburg in Sberbank and VTB-24 is in great demand and has positive reviews, since they have state support, and this is the key to reliability. You can get refinancing both for an amount equal to the balance of the debt, and for a large one. In this case, the borrower may dispose of the remaining funds at its discretion.
The difference from restructuring
Refinancing or refinancing is sometimes confused with restructuring a consumer loan. However, these are completely different financial transactions. Recall that refinancing of loans in St. Petersburg and other cities of Russia is the receipt of a new loan to repay a previously issued, but in a third-party bank. And restructuring is a change in the amount of an existing loan, extension of its terms and recalculation of interest.
So, suppose a borrower has a loan at one of the banks. He can come to a financial institution and write a request for an extension of the loan agreement. A bank employee will consider the application and make a positive or negative decision on the restructuring of the loan already held by the borrower. In the event that the issue is resolved positively, the bank will notify its client of a new payment schedule, annual interest rate and the amount of outstanding debt, but the contract itself will remain the same. When refinancing, a new agreement is concluded with a new bank.
How beneficial is refinancing?
Refinancing of loans in St. Petersburg and all other cities of the Russian Federation was adopted in order to reduce the credit burden on the population. But is it always beneficial?
What can be done with a loan? Of course, reduce the interest rate on the loan, as well as extend its term. With the help of refinancing, the borrower can increase or decrease the amount of the monthly payment by collecting all available loans into one, including credit cards.
Who benefits from refinancing? Significantly save the family budget by receiving a loan, can a young family with a mortgage loan. Agree, in this situation even two percent reduction in the annual rate will play a role.
Refinancing will also bring benefits to those borrowers who want to combine all their loan obligations and start paying at a single, reduced rate.
But not everything is as wonderful as it might seem initially.
Before proceeding with the refinancing procedure, it is worth considering that some banks may levy fines for early repayment of credit debt. Sometimes the amount of the fine can cross out the amount that the borrower would have won by transferring his loan to another bank.
Another nuance is the re-lending of a security loan. So, let’s say if a car loan was taken from you, then the car is pledged to the bank until the loan is fully repaid. After making a decision on refinancing, the car, as a pledge, will need to be reissued to another bank. And this is not a quick procedure. At the same time, the borrower at this moment will have to pay the bank a loan at a higher rate, because it will not be secured by anything.
Think, weigh the pros and cons and then you will understand whether refinancing is profitable for you and will definitely make the right decision.