The refinancing loan is designed to finance expenditure on fixed asset investments, payment of debt obligations short, medium, and long term the applicant.
As usual, the essence of refinancing explains it simply, what is called "fingers.”
So, the borrower took a loan. Took credit at relatively high interest rates and a relatively short period. Regularly paid on the loan, when he sees that interest rates in different banks were lower than in the "any" bank.
What makes the borrower?
Of course, he could not twitch, and pay as paid, but may try to reduce the interest rate, and give credit for using less.
How?
You can come to "their" bank and ask them to lower the interest rate.
What happens?
Option two:
- Either leaves interest rates unchanged. (Of course! Interest is earned income - bank! Who will give up on income?)
- Either interest rate had declined. (Miracles happen sometimes!)
Cases where the bank is ready to lower interest rates and when the bank is not ready to lower it - in detail.
- For example, the bank is ready to lower interest rates.
You can do this in two ways:
- If the loan agreement between the Borrower and the Bank provides for changes in interest rates, the bank simply changes the interest rate and all. Deposit is issued an application to the loan agreement.
- If the credit agreement does not provide for changes in interest rates, the bank issues a new loan on different terms. Due to the new loan is extinguished the old loan and the borrower pays in accordance with the terms contained in the new credit agreement.
- If "your" bank is not willing to lower the interest rate or in any other way change the terms of the loan agreement, you can go to another bank and get a new loan there. Due to the new loan can be paid off "their" bank continue to pay for a new loan under new conditions.
Getting a new loan through which you can repay the old loan, just called the refinancing (or lending).
Complexities refinancing
So, imagine that you came to the bank for a new loan to get him to pay with your bank, credited before.
And, let's say you need a loan of $ 100 thousand (or even more).
Amount - the essential and the bank is ready to give credit only mortgages. But real estate is already in the mortgage by "their bank": that which has already issued the credit and loan of which Company refinance. In order to "your bank" agreed to withdraw the pledge, it is necessary that you have returned the money to him, and to ensure that the new creditor bank would give you the money, it is necessary that you have laid it to real estate.
Company gets the "vicious circle,” which does not break so easily.
What to do?
Different ways to refinance
- Curve scheme "- for its implementation needs a" kind uncle "(aunt, organization, winning the lottery, an unexpected inheritance, treasure, money from the business and others).
If the "good uncle" is, then all the more easy.
- The classical scheme of refinancing - the new bank gives the money to repay the money with the same creditor banks.
Why refinance loans?
Usually (at least as assumed), the refinancing should be to reduce the interest rate and, consequently, reduce the financial loss. But in 2007, Company has for our clients refinanced loan, resulting in interest rate does not become smaller, and even vice versa. All the same, this proved to be profitable.
You can send the application for registration of the refinancing loan, filling out an online refinancing loan form on our website, and you will contact your personal manager.
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