Many financial institutions offer loan refinancing. "Bank of Moscow" is one of them. The service is indispensable for those borrowers who have temporary financial difficulties. With its help, it will be possible to repay the debt, but on acceptable terms.
The concept
Restructuring is called a change in conditions for a contract. This may be an extension of the loan term, a delay, a decrease in the size of the payment. Also, this concept implies the issuance of a new loan, thanks to which the existing debt is paid.
When the economic situation in the country changes, loan refinancing comes to the rescue. "Bank of Moscow" offers customers to issue loans for a long period, which will reduce the financial burden.
Types of loans
Bank of Moscow works with mortgage, consumer and other loans. Refinancing of loans of other banks, reviews of which can be found various, can reduce the financial burden of the client. Many borrowers use this service. They recommend resorting to it for less cost.
New refinancing packages regularly appear. They are relevant for those who took a mortgage at high rates. But you won’t be able to use the service if the bank has set a limit on early payment of debt.
Pros and cons
Customers can come across various offers. Refinancing loans allows you to lower the rate and change other lending conditions. Payment of debts becomes convenient. But this service has its disadvantages:
- a new clearance procedure is required;
- commissions may be charged;
- insurance is often required;
- need a secondary assessment of the property.
Due to the desire to change the conditions, the contract may not be very profitable. Therefore, you need to carefully calculate everything before filling out a document.
Features of the procedure
Re-lending is possible both in the same organization where the loan will be paid, and in another. It is more profitable to get a loan in the second institution, if there are better conditions, and pay off the debt in the first. And then you can safely repay the debt under the contract. This will save a little.
Refinancing a loan is beneficial for many customers. Bank of Moscow offers the procedure to borrowers who have credit cards. Making a new loan allows you to pay the old debt.
Conditions
Refinancing a loan at the Bank of Moscow is offered to an individual on the following conditions:
- period up to 2 years;
- amount up to 3,000,000 rubles;
- rate from 16.9%, but there are also special offers;
- no commissions for issuing, repaying.
The borrower must meet all the requirements so that he can become a client of the bank:
- citizenship of the Russian Federation;
- age 21-70 years;
- work experience of 3 months.
Customers can apply for a special refinancing loan. Bank of Moscow offers a special program for re-crediting clients who have suffered from the elements in the Far East. These customers have special conditions.
Documents
In each bank, the conditions and list of documents may vary. In the Bank of Moscow they are practically the same as everywhere else. To conclude a new contract, the following list of securities will be required:
- passport of the Russian Federation;
- TIN;
- income statement;
- contract and repayment schedule;
- certificate of debt;
- loan information;
- statement of payments;
- pledge agreement and an act of appraised value.
Additionally, you can provide a work book. All documents are submitted to the bank, which will carry out on-lending. Then you should expect a solution. Then you need to contact the organization where the loan is issued, warning the specialist about the early repayment of the debt. When the contract is signed, funds are transferred to pay the debt. If a pledge has been issued, then it is also transferred.
How is the procedure going?
There are several stages of refinancing loans that you must go through to complete the contract:
- It is necessary to submit an application at the bank office or by phone.
- The application is considered 30 days.
- The operator informs the client about the decision of the bank by phone. If the answer is yes, then the details are negotiated.
- At the set time, the client must visit the bank office, sign the papers. The amount issued immediately goes to repay the debt.
This ends the procedure. Thus, mortgage refinancing can be carried out . Bank of Moscow offers favorable conditions for customers, making it much easier for them to pay off debt.
Advice to borrowers
- The procedure is beneficial for customers if a new loan is issued at a lower percentage, and the period of the existing debt and balances are long.
- It is necessary to calculate the cost of early repayment of the loan, and also compare them with the benefits of lowering the rate. If the latter is invisible due to the cost of closing the loan, then you should not resort to the service we are considering.
- Refinancing consumer loans in Moscow allows you to write off fines;
- You need to carefully familiarize yourself with the documents that are provided for signature. And if something is unclear, then this must be clarified immediately.
The difference from restructuring
This service is often provided by the Bank of Moscow. Refinancing loans from other lending institutions should not be confused with restructuring. The latter involves a change in the amount, term, rate and other conditions under the current contract. In this case, you need to visit the bank, write a statement, for example, to extend the loan period. Then the application is reviewed and then a decision is made. The client receives a new debt repayment schedule, but the contract is the same.
Refinancing involves the conclusion of a new contract. The subjects of the agreement usually change. The procedure is carried out both in the bank that provided the loan, and in another financial institution. But the refinancing of their loans is rarely performed, since it is unprofitable. Therefore, customers should contact those institutions that have special programs.
Nuances
If refinancing of consumer loans is carried out in Moscow, then the following data should be indicated:
- Category: doctor, teacher or civil servant. In this case, a favorable rate applies under a special program.
- For salary clients, special conditions apply for the provision of a new loan.
- Corporate employees can hope for benefits in obtaining a loan.
Be sure to indicate the payment at another bank, the debt at that financial institution. After filling out an application for a telephone, a message about a preliminary decision is received. If the answer is yes, then you need to contact the bank office. Money in due time will be transferred to another organization. If the client has drawn up an agreement with additional funds, then the loan is credited to the card or account.
If you apply to any institution, including Bank of Moscow, refinancing loans from other banks may have some pitfalls. Therefore, all documentation must be studied carefully. You also need to familiarize yourself with how interest is accrued: it is important that this happens from the moment the money is transferred, and not from the signing of the contract.
You need to find out if the entire cost of the loan is indicated, and also whether the repayment schedule in the agreement matches the one specified in the application. The client must be aware of the conditions for early repayment. When the debt is not repaid in a timely manner, the bank has the right to write fines, as well as write off funds from accounts, but only if it is indicated in the contract. Usually this document indicates that the financial institution has the right to the property of the borrower in case of refusal to fulfill its obligations. Therefore, you must read the entire contract before signing it.