There are cases in life when money is needed very urgently, but there is absolutely no time to wait, and the borrower takes a loan on any terms, just to get the money. But after the money has been spent, there is a new shortage of money, since a loan that was taken urgently requires large sums of money to repay it. In addition, the percentage on quick loans can range up to 100 percent, which is very unprofitable for the borrower.
In this case, probably, everyone has a question “How to repay a loan?” and “How to get out of this situation?” And even in this difficult situation there is a solution, you can take a loan for refinancing.
Refinancing refers to a loan that is taken on more favorable terms to repay an existing loan. In this case, the borrower will not see money, they will immediately be transferred to the account in order to repay an expensive loan. Thus, the borrower has only one loan and less money will be needed to pay it.
How to get a refinancing loan?
Choose a bank that will be most profitable, with a passport and an agreement on an existing loan, go to the bank, fill out all the necessary documents. If after consideration of the application a positive answer is given, the money will be transferred to the account of the creditor.
Requirements for refinancing borrowers
Mandatory lender must be notified of the repayment of the loan ahead of schedule. The lender must be notified one month before the payment of the entire loan amount.
- A loan that already exists should be repaid without delay, within a couple of months before a new loan is issued.
- The borrower must have a positive credit history.
- Until the end of payment of the previous loan should remain at least three months.
- The borrower must have a regular income and submit an appropriate income statement.
- The borrower work experience must be more than one year.
There are very few differences between refinancing and ordinary credit, everything is practically the same, only for refinancing an agreement on an existing loan is additionally provided, the amount remaining for repayment and the details for repayment.
Banks very rarely give money into their hands, but such cases do happen, only then the borrower will have to submit documents that will confirm the payment of the loan, it is much more convenient when the bank itself transfers the funds to the lender.
The main goal of refinancing a loan is to reduce overpayments on loans and provide the borrower with conditions under which he could pay the loan on time.