In the life of every person, situations can occur when it is necessary to urgently borrow a certain amount of money somewhere. In this case, people often turn to banks or MFIs with the aim of obtaining loans. It’s great if, after arranging a loan and covering current financial needs, it turns out to repay the debt and forget about everything as a nightmare. But, situations can be different and often borrowers are faced with loan delinquencies, fines, additional interest, communication with collectors and even lengthy lawsuits.
What is loan refinancing?
Refinancing debt on a loan is sometimes the only correct way out of this situation. The essence of this procedure is to issue a new loan, the purpose of which is to cover the old debt. Microcrediting in most cases is required in the following situations:
- Decrease in the monthly income level of the borrower. This is preceded by a dismissal from work, a reduction in wages, temporary disability and so on.
- A crisis in the country or economic changes that have had a negative impact on the financial system and the welfare of the borrower.
- Bankruptcy of a client of a financial company.
- Illegal actions of third parties that had a negative impact on the income and savings of a credit service client.
Re-lending of online loans is carried out exclusively on an individual basis. Representatives of a financial company will necessarily study the business of the borrower, evaluate all associated factors, check the availability of the necessary documents, and only after that make a decision regarding the possibility of refinancing.
Where to get money to pay off debt?
What is the refinancing we have already considered, but who can help in paying off the old debt? Most often, credit companies try to meet their customers and provide low interest rates or a longer repayment period for a new loan. Provide only true information, do not hide from the representatives of the bank and you will certainly be counted!
How and where to get a loan for on-lending? At the moment, there are three possible solutions to this problem, each of which must be considered in more detail.
Banks do not often encourage borrowers to get money to close off old debt. However, if the client provides collateral or attracts solvent guarantors, then the bank will not be refused. If payment of a new loan is not made at a clearly defined time, the financial company will alienate the property of the client or take this money from the guarantor.
To re-lend online loans at the bank, the borrower will have to provide the following package of documents:
- Passport with registration and identification code.
- Certificate of income from the official place of employment. The term for issuing this document should not exceed 6 months.
- Statement of debt and debt repayment period.
- The consent of the financial company, where the borrower has an overdue loan, in the primary compensation and receipt of funds.
- Guarantor statement or consent for a pledge.
If you decide to contact the bank, it is worth collecting all the necessary documents in advance. This is justified by the fact that in the absence of any certificate, representatives of a financial company have the right to refuse to grant a loan without justifying their decision.
Fast online loans – it is simply profitable and very convenient. In order to become a client of the MFI and receive the necessary amount of money on loan to pay for an overdue loan, the borrower must meet the following criteria:
- Age – 18-65 years.
- Permanent source of income (official or unofficial).
- Passport and citizenship.
- Individual tax number.
- Bank card and free internet access.
When applying for a loan, you do not have to confirm the purity of your credit history, make a deposit or provide extracts from your place of work.