You will need
  • - loan agreement;
  • - application for refinancing;
  • - extract from the bank on the balance of debt;
  • - documents confirming the identity and income of the borrower.
If for any reason you are unable to repay the loan under the same conditions, then you must first contact the bank that provided you the loan. Some banks go to meet their borrowers and allow them to temporarily not pay the loan, giving him credit holidays, or reduce the monthly payment, due to the increase in the loan term. At the same time, banks rarely change the interest rate, since it deprives them of part of the profits. On the other hand, it is unprofitable for banks to lose their reliable borrowers, and in some cases they satisfy the request to reduce interest rates.
Some banks directly prescribe in the loan agreement a ban on changing its conditions. But the borrower can contact a third-party bank with a view. True, it is available only to bona fide borrowers who did not allow payment delays.
Today, banks are offering a special product that allows you to change the terms of the loan. It is called refinancing or refinancing. This is a relatively new proposal, but is becoming increasingly popular among Russians. Such programs allow banks to attract bona fide borrowers and improve their loan portfolio. Refinancing programs are often used by borrowers with large loans (mortgages or car loans), as well as those who want to combine several loans into one.
Refinancing programs make it possible not only to get more favorable interest rates on the loan and thereby reduce the overpayment. They may also be of interest to borrowers who are stranded financially. Indeed, thanks to refinancing, you can increase the term of the loan and reduce monthly payments. Also, refinancing is suitable for those who aim to change the currency of the loan. Due to currency fluctuations, such a loan may become unprofitable over time.
To refinance a loan, first contact your bank and take a certificate in it about the debt balance, as well as the payment schedule.It would not be superfluous to receive a certificate of the absence of delinquency; this will significantly increase the chances of approval for refinancing.
Next, you need to apply for refinancing, as well as provide the required package of documents. For a bank that is engaged in refinancing, providing such a loan is equivalent to issuing a new loan. Therefore, the borrower will be required to confirm their solvency.
In the case of approval of refinancing, you must notify the primary lender and the intention of full early repayment. The application of the borrower on the early repayment of the refinanced loan with the bank's mark of its acceptance is transmitted to the refinancing bank.
On the set date, the refinancing bank transfers the money to the primary lender. After that you can start paying the loan under the new conditions.
Offer from our partner
Before you decide to refinance, it is necessary to assess in detail the own benefits of this. It is worth considering that refinancing entails additional costs that may make this operation unprofitable.As applied to the refinancing of mortgage loans, banks additionally charge a fee for issuing a loan and considering an application (on average up to 2% of the loan amount), a pledge assessment (about 5000 rubles), and property and life insurance (about 1%). You will also have to pay for the withdrawal of collateral (from 1500 rubles) and state registration of the property (up to 1000 rubles).
Helpful advice
It is worthwhile to engage in a change in the terms of lending only if the balance of the principal debt exceeds 30%. Up to this point, there are major payments on credit interest, and subsequently most of the payments go to pay off debt.
  • I want to reduce the term of the mortgage loan in Sberbank in 2018

Tip 2: How to change expensive credit for cheaper?

There are quite a few situations where you may need a new loan to pay off the old one, which is why today many banks offer their clients to repay their debt to financial institutions on very favorable terms.
In order not to spoil your credit history and get out of a difficult position to repay a previous overdue loan, you can apply for a new cheaper loan.
Today, refinancing or refinancing is a common way of lowering the loan rate, increasing the time, reducing the amount of payments, changing the currency, as well as processing one loan instead of several.
How to change expensive credit for cheaper?

There are banks offering consumer loans in cash or non-cash funds that can be used for their own purposes, for example, for a mortgage or car loan, including for repaying a previously taken loan from another bank.

But for refinancing a loan there are difficulties. It should be borne in mind that the selected bank to repay your debt will re-evaluate your solvency. Will require a package of documents. If you urgently needed funds and you took an instant loan, which required only a passport, then for a new loan you may also need a certificate of income and a guarantor. As well as a certificate of the amount of credit debt, taken in the bank where the loan was originally opened.

For refinancing a loan, the usual options are considered as for a conventional consumer loan. Work experience should be at least six months to a year at the last place of work.The required level of salary varies in a wide range on which the amount provided for the loan depends. Banks will take into account your marital status, the number of minor children, your credit history. Some financial institutions can provide refinancing without collateral, but most banks will still require guarantors or a pledge of property, such as a car.

Usually, banks consider your application for refinancing a loan from 2 to 5 days, while some others can already issue a loan in a few hours. The term of the loan to repay the debt is usually longer than the usual lending - from 5 to 7 years. It should be borne in mind that the longer the loan period, the greater the amount of overpayment.

It is necessary to know in advance the condition for the early repayment of a new loan, since some banks may charge penalties for this.

When the final loan transfer is completed, the client will pay a lower interest rate. It is considered profitable if the interest rate on a new loan is at least 2 percentage points lower than the previous one.

Thus, an important condition for obtaining funds for refinancing a loan is a good credit history, as well as the absence of late payments on a previous loan.

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