Difficulties with paying bank debt can be solved if you apply for refinancing a loan, the conditions for granting money at different banks may differ in interest, term. The service involves the issuance of a new loan to repay the old one at your own or third-party bank.
Refinancing refers to targeted loans. The bank provides money to repay the old loan. This point is indicated in the contract. Money is not given into the hands of the client, but transferred to the borrower's credit account in an amount sufficient to close the debt.
The service is beneficial if the loan is issued several years ago, provided that at present similar loans are issued at a lower interest rate. For example, they offered to take an apartment on a mortgage 7 years ago at 20%. Now, under the same program, you can purchase housing at 10-12%. Refinancing a loan at a low interest rate is not the only plus of the program. Other perspectives open to the client:
- Extend the loan term;
- Reduce the amount of monthly payments;
- Combine several loans into one;
- Take some amount in excess of the amount that will go to cover the debt, and use for personal purposes
It makes no sense:
- Refinance a loan if less than 3 months remain before full repayment of the debt;
- Refinancing on small consumer loans;
- Use the service if the bank charges a fee for early repayment.
Any bank puts forward its requirements for borrowers. The main points are the same. It:
- The presence of Russian citizenship;
- Permanent registration;
- Providing a document on the amount of permanent income;
- Good credit history.
A refusal will follow if in the last 6 months there were delays in payment or the debt was formed at the time of the appeal.
Four points are considered decisive:
- Where is the lowest interest rate set for refinancing a loan ;
- Amount - do you fit into the limit provided by the program;
- Period of refinancing: find out what the monthly payment will be when refinancing for this period;
- Hidden commissions, other payments - will there be a real benefit when the conditions change.
It is easier to choose a bank for refinancing using the Vyberu.ru portal. This section contains the proposals of leading lenders of Russia. Having before your eyes information on interest, terms, amounts, it is more convenient to find an option that will suit you more than others.
Click on the link "more", study the information in detail and apply.