Why may a delay be required? Situations are different. They did not pay their salaries in time, there were unforeseen expenses and there was no money to pay for the loan.
A deferred payment may be provided for by a loan agreement for a predetermined period. This condition allows the borrower to postpone the next installment of the loan for some time. What constitutes a deferred loan payment and how to get it, we will consider in this article.
What is a loan deferral?
Some banks in their loan agreements provide a special condition that allows the borrower in the event of force majeure to receive a delay in making the next payment.
A similar measure is used by banks to attract more customers. In some cases, credit-type organizations are insured and provide an opportunity for deferment only to those customers who have a surety.
However, modern life is unpredictable, and there may be situations where the borrower is simply not able to make the next payment of the loan, and his contract does not contain conditions on the possibility of deferred payment. So still, is it possible to defer payment?
In the event of such circumstances, experts recommend contacting a bank representative and honestly state the problem. There is a good chance that the organization will try to enter your position and provide an opportunity for a deferred payment for a while.
How exactly is a grace period granted?
In most cases, credit-type organizations are included in the position of their borrowers and provide a deferred loan payment. This can be done in such ways as:
• Credit holidays. For a certain time, the bank freezes credit payments, not excluding interest. A similar option is rarely used. The reason is that it is not profitable for any bank to meet the client at a loss to itself.
• Debt restructuring. This method involves increasing the period during which the loan must be repaid. This is due to the fact that the bank makes a reduction in the size of the payment, which will need to be paid every month after the delay has been granted. The disadvantage of this decision is the need to pay more interest.
• Change in payment schedule. For example, monthly payments can be replaced by quarterly payments.
• The bank allows payment of only interest on the loan, and the principal amount of the debt is allowed to be repaid later.
• Use of the subject of pledge, if such was assumed by the contract, for its sale and payment of part or all of the loan with the proceeds of money.
However, banks may not agree to a deferred payment and prefer to transfer the debt to a collection agency. But the borrower also has the full right to defend his own interests, not only in the prosecutor's office and the police, but also in the courts.
What is the danger of delay?
Loan defaults can be of two types. The first - unauthorized, arise as a result of the borrower's evasion from making payments to the credit account. The second is legal. Such non-payments are legalized by the bank.
As a rule, the bank provides a deferred payment from two to five days in case the client forgot to make the next installment on time. After such a delay, the borrower must pay the loan. The bank sends a notification to the client, offering to visit its branch and make a payment.
Often a short delay in a loan can entail only a fine on the debtor or a blocking of his credit card. However, if the period of non-payment is significantly delayed, the bank has the right to appeal to the court with a view to collecting it.
What do we have to do?
Can I defer payment of a loan? This question is now asked quite often. In order to obtain legal respite, the borrower should visit the bank and explain to his representative all the reasons why he will not be able to make loan payments every month for some time. If necessary, you can provide documents that can confirm your arguments. The Bank will study the situation and decide on the possibility of granting a delay or refusal.
Conclusion
Some banks provide deferral as a separate service that they provide to their conscientious customers. You can learn about all the conditions by visiting the bank's office or its official website. Often, representatives of such organizations are asked to fill out an application for a deferment and pay a commission for the provision of the service. After that, the bank will draw up an updated debt repayment schedule for its client and send him a corresponding notice.
We looked at how to defer payment of a loan.