Quite often, people who apply for a loan and cannot repay it or notice the appearance of new, more profitable programs, are interested in the question: where to get a loan to pay off other loans? Holders of several credit loans issued at different times and for different needs fall into the category of those interested in this. Credit burden optimization and budget unloading became possible due to a unique banking service known as loan refinancing. The proposal is based on the repayment of old debts by means of a new loan, which provides for more favorable partnership conditions.
What are the benefits of refinancing to banks?
Due to the fact that the number of people interested in the question of where to get a loan to pay off other loans is growing, refinancing is becoming available in an increasing number of banks.
It is offered not only by the giants of the financial sector, such as Sberbank, VTB 24 or Gazprombank, but also their smaller brothers. Even microfinance organizations are involved in the struggle for customers. The activity of financial institutions is associated with various factors. It:
- Slowdown in retail lending.
- Decrease in creditworthy quality of borrowers.
- The increase in the number of defaults and late payments.
Customer acquisition
Re-lending allows you to attract partnerships to customers who pay on time and on time, but who previously issued a low-cost loan. Not a single financial institution wants to give up the opportunity to turn someone else's good client into their own. For borrowers, a positive factor can be considered that when a financial institution finds out about the search for ways to refinance its own loan, it itself, trying to keep the client, offers to restructure the debt. A loan becomes available to a client to pay off debts within the same bank.
New perspectives
Bank refinancing, a loan to repay another loan, became available among the bank's services in 2011, immediately after amendments to the Civil Code of the Russian Federation were introduced. The opportunity to refinance your debt was supplemented by the lifting of sanctions for its early payment. It is enough to warn a financial institution in a few days. This time is necessary for debt recalculation in accordance with the legislation, which will take into account the type of payments: annuities or differentiated.
What does refinancing give?
Through refinancing, the bank's client is able to simultaneously solve several important problems for itself. If there is no opportunity to reduce the interest rate, which would allow to reduce the total amount of debt, there is a chance to change the size of the monthly payment downward. Alternatively, instead of several loans it is much more profitable to pay one. Getting a loan to repay another is available with a parallel increase in loan size. Additional funds are often very helpful. Demand for the service is formed due to the volatility of currencies, when a change in the rate leads to the formation of overpayments. Replacing one loan currency with another can be beneficial.
Banks are willing to partner, because they do not want to replenish their arsenal of bad debts. The relevance of the service and the question of where to get a loan to pay off other loans are determined by the change in interest rates of the Central Bank. A few years ago, the lending rate exceeded the present by 5-7 points. If we talk about the mortgage, then the overpayment after the loan agreement will be significant.
When should I apply for a loan?
Refinancing provides certain advantages not always, but only in strictly defined situations. Use of the service will be relevant in the following conditions:
- If you have a long-term loan program (from 5 years).
- The difference between the initial and new rates should be at least 2-3%. No commissions, duties, insurance and other additional costs can not be done.
- Amount of debt not less than 1 million rubles. Alternatively, the debt amount should be at least 30% of the total debt.
- If at least 6 months have passed from the moment of conclusion of the primary contract.
- More than 6 months are left until the end of the loan agreement.
Before considering the issue of where you can get a loan to pay off other loans, you need to remember the basic rule: the more time has passed since the signing of the primary loan agreement, the greater should be the difference between the rates.
Which banks offer the most favorable refinancing conditions, or Where can I get a loan to pay off other loans?
The loan refinancing service is very common in the banking sector. Among the huge number of proposals, it is worth paying attention to the programs of the following financial institutions:
- RosEvroBank. It carries out refinancing of loans, before the expiration of which more than 3 months remain. Date of loan must not be older than 9 months. For secured loans, the bank offers a rate of 17% for up to 5 years. The maximum allowable loan amount is one and a half million. The application is reviewed within two days. For customers who have a positive credit history of at least 2 years, the rate on a loan to repay another loan will be less by one point, but subject to the provision of collateral.
- SibRegionKreit. It offers refinancing of loans issued at least 8 months ago at the time of application. The loan agreement must end no earlier than 90 days later. The interest rate can vary from 16 to 18%, depending on the conditions of the partnership. The amount of the loan can be from 90 thousand rubles to 1.5 million rubles. The duration of the partnership can be from 1 year to 5. Documents confirming the income are required. Consideration of the application is carried out no longer than 5 days, and a positive decision is valid for 1 month.
Favorable offer from Sberbank
Studying the question of how and where to get a loan in order to repay another loan, you need to carefully study the offer of the largest financial institution - Sberbank. The bank offers two partnership formats. This is the provision of funds to repay a loan issued by another bank for the purchase or construction of housing in Russia. The loan term may be 30 years. The loan rate, depending on the conditions of the partnership, is from 15.25% and higher. Sberbank offers separate programs to repay not only mortgages, but also consumer loans from other banks. Refinancing may cover at least 5 other loans. The term for which funds can be provided is not more than 5 years. The rate is from 18.5% and higher.
How to choose a bank for refinancing?
When studying the question of how to get a loan to repay a loan at another bank, you need to pay attention to your own benefits. Before concluding a cooperation agreement, you need to check whether a financial institution can provide one or more conditions:
- Increase or decrease in the loan term.
- Reduced monthly payment.
- The presence of a program, according to which at first you can only pay interest on the loan, and then proceed to repay the principal amount of the debt.
- Replacing one loan currency with another.
- It is possible to obtain more favorable partnership conditions when providing collateral for a loan or to increase the deposit amount in this way.
What to look for?
Having learned which bank gives a loan to pay off other loans, you need to soberly assess your solvency in order to choose the most profitable lending scheme. A prerequisite for partnership with the bank under this scheme is the availability of a constant source of income, in particular, work in one place for at least 3-6 months. The term will depend on the amount of the loan. If the client of the bank has a low income, he must provide a surety with a good level of income, but no less than that of the client.
Having figured out where to get a loan to pay off other loans, it’s worthwhile to prepare a package of documents in advance, which is practically no different from that which was necessary for arranging the primary loan. Banks work in this direction also with problem customers, but on more stringent conditions.