In many domestic financial institutions, there is a service called "refinancing of consumer loans."This procedure is usually beneficial to both the client and the bank.After all, it allows the borrower to improve the conditions of service of the debt and the creditor - to prevent the release of the transaction to delay.Some banks refinance not only its own transactions, but also its competitors, selecting them so that part of the portfolio.
three main reasons for lending
It is primarily on large loans, designed for long term.It mortgages and loans secured by motor vehicles.Refinancing of consumer loans banks offer carried out in cases where it is likely that they can become problematic.Then the financial institutions make concessions to customers and agree to issue a new deal with the reduction rate (subject to availability) or prolongation.
If we consider the situation from the point of view of the customer, he should think about refinancing, when, after a while it appeared that the loan is not issued on the most favorable terms.Paid part of its debt and prove their ability to pay, in practice, the borrower is entitled to a certain loyalty.
second reason that you can use the "refinancing of consumer loans" - too large payment.Unfortunately, sometimes the client simply does not count their forces, or circumstances change over time not for the better.And it turns out that the conditions seem to be quite good, but the loan is so burdensome man that he consults with him literally the last effort.Then it makes sense to renew the deal for a longer period or change the scheme of payments that they were forces to the borrower.
third reason - the desire to change the lender.If the client is serviced by another bank, it receives a salary, use other services that might be offered to him there and refinancing of consumer loans.Naturally, the terms of the new agreement should not be worse than the previous one, otherwise the process will lose its meaning.
banks in which this service is available?
refinancing "foreign" loans, many banks are engaged.This is especially true of large systemic institutions such as Sberbank.Refinancing of consumer loans, and then offer its clients that are on the brink of solvency and foreign borrowers.The latter can make a deal only if there is no current overdue.
VTB Bank refinancing of consumer credit is also possible.Here, as in the Savings Bank, gladly give the money to the client to be able to close them by "foreign" transaction.
Leaders in refinancing
addition to the above financial institutions, publicly offers to issue a stranger borrowers refinancing of consumer loans, "Alfa-Bank."The institution has positioned itself as a leader in this area of active operations, and provides an opportunity to the people to get rid of transactions executed at a disadvantage by the new design.If you believe the advertising, the agency is ready to refinance literally any debt from mortgage installments and finishing.But in reality we are talking mainly about fairly large consumer credits.The leader as always mortgages and other types of long-term loans secured by a pledge.
Terms of Service
They usually correspond to actual on similar products at the time of the transaction.For example, the Savings Bank mortgage refinancing offer for up to 20 years.Similarly, the case in VTB and "Alfa-Bank".The interest rate on a new deal will depend on the amount as well as the relationship with the client.So, Sberbank offers favorable refinancing conditions for employees of businesses serving here on salary projects.On average, it is between 14 and 16 per annum in local currency.
VTB percentage is slightly higher (17 per year), but the process of coordination and execution is faster.All records beats the leader in this area - "Alfa-Bank".It offers to renew a mortgage just under 12.2 per annum.
How is the refinancing of consumer loans?
If a person was determined to refinance its debt, the first thing he must do - is to apply to the institution where he is planning to issue a new deal.As a rule, to provide a certificate of salary (for six months or a year, depending on the requirements Bank) and passport.Sometimes, future lenders ask for a document on the balance of debt and the quality of service of the transaction.Some ask yourself this information to the credit bureaus.
In the next stage, the bank approves the customer making a new loan to pay off existing and announces its decision.In case it is positive, the borrower informs about the pending deal your bank (without the consent of the refinancing is not possible) and sign the contract.
any document in the process of lending
addition to the application form, which gives the customer at the stage of coordination, is certainly a credit agreement.Unlike ordinary transactions for the purpose of issue of money will repay the loan with another bank.At the request of the lender may further execute a contract of insurance.This applies only in cases where the transaction secured by a pledge (real estate, cars or other).
Some lenders do not require insurance of the collateral, which significantly reduces the cost of the procedure, especially when it comes to car loans.When refinancing transaction, which serves as collateral for the property, and the agreement would have to renegotiate the mortgage.Usually this is due to additional costs because it is issued by a notary.
Refinancing of consumer loans overdue
If the transaction is serviced in accordance with the terms of the agreement to refinance it will not be difficult.Otherwise, things on loans violation of the obligation.If the borrower made a delay in one bank, he will have to make every effort to prove their ability to pay another.
So refinancing of outstanding transactions is unlikely (unless part of a restructuring within the same financial institution).The bank is interested in the quality of its loan portfolio.Therefore, it can to meet the client and to issue him a new deal to repay existing debt overdue, provided that satisfied its solvency.So refinancing problem loans is possible in principle, but subject to certain conditions (for example, make a few "test charges" in the current transaction).
What should pay attention to the borrower?
decide whether to lending before proceeding to the immediate clearance should again read the contract.If its conditions for early repayment the borrower must pay a serious penalty the bank, then refinancing can immediately forget.After filling out a new deal, the customer will have to completely pay off the current.This will significantly increase the amount of the debt, so that the benefit would be very questionable.
In addition, you need to carefully read and a new agreement to its terms and conditions not have been more enslaving.If after a thorough analysis of the client understands that he is profitable, you should immediately move from thought to action.
