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The economic crisis creates demand for this type of banking services as refinancing. The possibility of taking out a loan on more favorable terms could not only interest those customers who are in a difficult financial situation. Rational borrowers see such lending as a way to save their own financial resources.

Domestic credit


Many banks offer internal refinancing of personal loans. The borrower receives a certain amount on more loyal terms that are supposed to cover the old loan.

The financial institution extends the contract with the customer, in which the new conditions and interest rates are set. A very practical mechanism to reduce costs and improve the quality of life.

The bank usually agrees to refinance when there is a real need. If the customer’s financial situation changes, the bank agrees to re-sign the loan agreement. Such a prospect is more acceptable than a future lawsuit if the borrower cannot pay at all.

Sometimes refinance loans to physical individuals are offered to good faith payers as a nice bonus. By reducing the rate and volume of payments, the financial burden can be significantly reduced.

Debt financing

A bank that needs lower interest rates is not always to be found, ready-to-use customers. Refinancing a mortgage loan for individuals is only possible if you contact another organization.

The borrower is under no obligation to inform the lender of its intention to refinance. The customer has the full right to do so.

If it is difficult to choose the right bank, it is necessary to use the services of a broker. He helps with the submission of applications to various institutions and selects the optimal payment terms.

Such broker support is of course not free of charge. It is necessary to provide the advisor with 1% to 10% of the requested amount. Not very cheap, but in some situations, a specialist can provide real help.

Required Documents

Required Documents

Refinancing loans from other banks Individuals sometimes use the simplified scheme. In fact, another bank has made a positive decision about the loan earlier, and tax officials have reason to believe that. The customer must have a previous loan contract, all payment receipts, identification documents, and a profit and loss account.

It should be borne in mind that dirty creditworthiness, the lack of a permanent job and a delay in an earlier loan can be a serious obstacle to a positive solution to the problem.

Loan conditions

Each bank organization brings its conditions of credit refinancing to individuals. But everyone has something in common. You can start the process no later than 3 months after taking out the loan. There should be no delays during this time.

The amount of the debt exceeds 50,000 dollars, and there are at least 7 months until the end of the payment. The customer who submitted the application should not be older than 65-75 years by the end of payment.

You also have to submit a declaration of the amount of the debt. This document is usually made available free of charge at any credit institution.

If a guarantor is obtained, a complete list of documents is also required.

Therefore, do not confuse the refinancing of loan persons with restructuring. The latter occurs under the conditions that the customer is unable to make a monthly payment and that the amounts to be paid have to be reduced considerably. The loan is a rational decision by the borrower to reduce the financial burden on his own budget.

How does the process work?


After I have chosen the bank, the loan is being refinanced by one person, all the necessary documents are collected. The application is then submitted, which the institution will consider within a few days.

In the event of a positive decision, the customer either receives cash or the money is transferred to the account of the old lender.

After completing the procedure, the borrower undertakes to meet all obligations under the contract in good time and in full.

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