When you make a contract, the bank carefully checks the level of solvency and reliability of the client, taking care of one hundred percent return of borrowed funds. In some cases, the financial position of the payer is deteriorating, and the amount that until recently was easily paid as a monthly payment has become too heavy. Restructuring a loan in a Bank to an individual or organization will allow settling the relationship with the lender.
The concept of restructuring
If there is a serious problem with finances, it is recommended to apply to the bank with an application for restructuring as quickly as possible, without leading to a delay. It should be noted that the credit organization is not obliged to revise the terms of the contract, and the right to use the restructuring appears only under certain circumstances in which the financial position of the borrower has deteriorated significantly.
The goal of restructuring is to alleviate the financial burden due to lower incomes. This can be achieved by extending the term of the loan, by revising the interest rate in the direction of decreasing, by applying credit holidays.
In order to take advantage of such offers of Bank , it is necessary to send a corresponding application to the branch of the credit organization with attachment of documents confirming the change in the financial position of the borrower. Even if the loan has already been delayed, you can achieve restructuring.
For a borrower, restructuring means:
- the ability to continue to fulfill their loan obligations, but the amount of the monthly payment becomes less;
- exclude the possibility of charging additional fines;
- to avoid legal proceedings exhausting morally and requiring additional expenses;
- maintaining a positive credit history.
For the bank, restructuring also turns out to be useful, because the borrower does not refuse to repay the debt, but only revises the conditions. In addition, the increase in the term of the credit line entails an increase in the total overpayment, despite changes in the conditions of the loan. Thus, the program is beneficial to the bank, since it reduces the costs of recovering the debt through the court and bailiffs, increases the loyalty of clients who are confident in helping the bank to resolve possible troubles related to an unexpected deterioration in the client’s solvency.
If the situation of the borrower is actually difficult, timely restructuring is beneficial for both the lender and the payer. The advantages of using this program are many, and of the minuses only an increase in overpayment on the loan.
Features of restructuring in Bank
The largest and most solid Russian bank announces its willingness to meet borrowers who are experiencing financial problems, but in practice in order to do the restructuring, there should be a delay.
This means that it is only possible to amend the terms of the loan agreement with a delay, with a penalty charge, which means a tarnished reputation of the payer for the credit history bureau. Such a scheme of actions does not take into account the interests of responsible borrowers who promptly applied to the bank as soon as it became clear that he could not make a monthly payment.
Savings Bank restructured debt under the following circumstances:
- loss of employment;
- loss of additional source of income;
- maternity leave;
- conscription for military service;
- death of the main borrower;
- disability due to severe illness.
In addition to the occurrence of one of the above cases, it will be necessary to fulfill the main condition – the formation of a delay of more than 30 days.
Restructuring is the same transaction as the issuance of a loan, because the bank must reconsider the terms of lending to reflect the changed financial possibilities. In this connection, additional parameters are put forward, on which successful correction of loan conditions depends:
- The client should not have excessively large credit obligations.
- Each application is considered on an individual basis, therefore, in some cases, a guarantor will be required for review.
- For restructuring in the interests of the borrower, it is necessary to provide comprehensive evidence that the reasons for lowering the interest rate and extending the loan period are sufficiently weighty.
Options for restructuring from Bank
Currently, the restructuring program for individuals of the bank allows for the following actions:
- Deferral of monthly payments.
- The increase in the duration of the loan.
- Individual development of the repayment schedule.
The choice of one of the ways to implement the program will depend not only on the willingness of the borrower, but also on the intentions of the bank. As with a loan, the lender reserves the right to refuse to renegotiate.
Deferment of payment
Currently, the following options are applied for deferring payments to repay earmarked loans:
- mortgage payments can be interrupted for a very long time – up to 2 years;
- When buying a car as part of a car loan, the delay can be up to 1 year.
If the client has requested to reconsider the conditions of the consumer loan, the delay will also be 1 year.
The purpose of granting a deferment is to give the client time to improve his financial situation, find a job or an additional source of income, improve his health, etc.
Increase the loan term
If in the previous case, the client was given the opportunity to temporarily discharge his credit obligations for a strictly defined period of time, while extending the loan agreement, the client continues to make monthly payments, but the amount of payment becomes less, based on how much the repayment period is increased.
Restructuring of a loan with extension of the loan repayment period in Bank is possible on the following terms:
- Mortgage – no more than 10 years, provided that the total maturity does not exceed the maximum 35 years.
- Avtozay – up to 3 years, if the total period after the extension does not exceed 7 years.
- Consumer credit can be extended for no more than 3 years.
Due to the increase in the term of paying the debt to the bank, the amount of the monthly installment becomes smaller, which allows you to service the loan even with a significant deterioration in the financial situation of the client. It should be ready for the fact that the final overpayment of interest will be more, because the period of use of borrowed funds is increasing.
Thanks to the development of an individual plan, the bank takes into account the specific circumstances and financial capabilities of a particular borrower. First of all, this measure is most suitable for seasonal workers, due to the fact that the level of income during a calendar year is significantly different.
Accounting for the individual characteristics of the borrower allows you to develop such a plan that the main loan payments fall on the period of the highest earnings. An example of such a schedule would be the following example: with a fixed payment of 300 rubles, the borrower pays half a year for 50 rubles a month, and the remaining six months makes increased payments, taking into account the accumulated debt. Such a schedule greatly facilitates the position of the client, whose earnings may differ at different times of the year several times.
If the client could not improve his financial situation, or it became worse, with a re-restructuring, the chances for a positive decision of the bank are very small. The lender, considering the application, sees that the client, despite the benefits provided, is still unable to cope with his restructured obligations. What to do when you re-restructure the loan? Any re-revision of the debt repayment schedule is a huge problem for the bank.
To review the application for restructuring, it will be necessary to collect and submit to the bank sufficient documentary evidence that the financial position of the borrower has seriously deteriorated.
The exact list of papers can be found by contacting a specialist organization in the nearest branch. The operator will become familiar with the circumstances that led to apply for restructuring, and tell which documents should be provided.
As a rule, the standard list of documents, in addition to the application, includes:
- civil passport of the client;
- income statements (2-NDFL, 3-NDFL);
- employment record if the reason for the appeal is a job loss (or a certified copy);
- certificate from the Employment Service;
- a document confirming the reduction of labor remuneration (an order to lower the salary of an employee);
- the conclusion of doctors with the diagnosis of severe disease, which led to the loss or reduction of earnings;
- if there are many other loans, the client applies copies of valid credit agreements;
- other documents that will indicate the emergence of grounds for restructuring.
One of the main documents that is drawn up when applying for a revision of the terms of the loan is a statement drawn up on the letterhead of the lender.
You can fill in the information in the form of a sample or with the help of a specialist of the local branch.
Filling out the document form will require the client to enter the following information:
- The name of the bank, its basic details.
- Full F. AND. O. borrower.
- The unique number of the loan agreement, date of conclusion.
- Exact information about a client from a civil passport (number, date, place of issue, registration information).
- Contact Information.
- Information about sources of income at the time of appeal (name of organization, position, period of employment, the basis for dismissal, etc.)
- Information about other sources of income.
- Information about the co-borrower (spouse), guarantor, family composition and dependents.
- Indication of the justification giving the right to apply for the revision of conditions.
- In the text of the statement, the client makes his own arguments and suggestions as to which of the methods will allow optimally restructuring the debt.
- In some cases, it will not be out of place to list the property that the borrower owns and its overall financial performance at the current time (including costs and income for the month).
On the completed form, the client indicates the date of the appeal, signs and full name decryption.
A feature of the restructuring in the Savings Bank is the need to wait for the delay to apply to the bank, while there is always the danger that the lender will refuse to renegotiate the terms and the payer will remain with overdue debt, accrued fines and a damaged credit history. In order to reduce the risks, it is recommended that the loan payer know in advance at the bank what the chances of restructuring are and what documents will be required in this case.