Many credit organizations today offer loan refinancing programs for the population, which are also called on-lending to individuals.
The concept of refinancing
This phenomenon represents the payment, as a rule, of several loans in one bank at a reduced rate. Moreover, these programs are valid only for those borrowers who were not seen in late payments.
Re-lending can be carried out directly in the credit organization in which the borrower is serviced. It makes sense to re-lend a loan to individuals in the case of a long-term loan, since in the future the conditions for the provision of this service may not change in favor of the client, and when applying for refinancing, you can achieve some improvement in your financial situation.
Methods and methods of refinancing
Getting a reduced interest rate in your bank is quite difficult. Banks are chasing customers, so it’s much easier to get favorable conditions for a loan at another bank.
Re-lending can be carried out for the same period with a decrease in the rate that must be paid to the borrower. The second method of refinancing is to increase the payment term, which will lead to a reduction in lump sum payments, but to an increase in the total amount.
Refinancing brokers
If it is impossible to decide on a credit institution in which it would be most profitable to refinance individuals, this can be done using the services of a broker. With it, a potential borrower can apply to several credit institutions at the same time, and he will help you choose the best offer from those available. It should be remembered that the services of a broker must be paid, the amount can be quite impressive and make up to 10% of the amount of refinancing.
Terms of refinancing
On-lending to individuals is subject to a number of conditions:
- it is necessary to pay the loan on time, in some cases, credit organizations indicate the deadline for payment, during which it must be repaid;
- access to the home stretch of credit payment should be at least 6 months at the time of re-lending;
- the amount of the re-credited loan should be at least 50 thousand rubles;
- a prerequisite is payment without delay.
These are the general conditions for on-lending to individuals. At a particular lending institution, they can be supplemented by their conditions.
In any case, before starting on-lending, it is necessary to calculate whether it is necessary at all.
If interest on the loan has already been paid, there is no point in re-lending. If differentiated payments are made with the return of equal amounts of the principal debt and interest, then re-lending can be beneficial.
The greatest sense in re-lending is when the borrower has several loans, which can be combined into one upon refinancing and require only one payment instead of several during the month.
Documents for refinancing
To carry out on-lending, the borrower must submit the following documents:
- passport;
- work book (copy);
- certificate in the form 2NDFL;
- if it is necessary to secure a loan - title documents for this security;
- if necessary, the guarantor - the same documents in relation to him.
In addition, an individual applying for re-lending must provide a loan agreement and a certificate of debt. Some lending institutions issue the last document for free, while others want to receive money for providing even a piece of paper.
Refinancing at Sberbank
Persons from 21 to 65 years of age can count on on-lending to individuals at Sberbank, while the seniority at the last place of work should be at least six months, and the total seniority over the past 5 years - from 1 year.
In Sberbank, you can immediately re-lend 5 loans from different banks. Re-lending is provided on car loans, debit card debt with permitted overdraft, credit card debt, consumer credit. It is possible to refinance on the first and last types of loans if at least one loan obtained from another bank is included in the refinancing program.
General documents are required to provide a statement from the borrower and documents confirming the seniority.
Since lending conditions are constantly changing, they need to be tracked on the bank's website.
Refinancing at VTB 24
On-lending to individuals at VTB 24 is carried out on the basis of a minimum interest rate of 13.9% effective on 01/01/2017.
The total loan amount of 3,000,000 rubles may be subject to re-lending.
Re-lending is carried out on consumer loans or credit cards. Here, milder conditions for the loan expiration date - up to 3 months before the loan repayment ends, can be re-credited. Moreover, it is carried out only on ruble loans. At the same time, the borrower was not supposed to take credit holidays, carry out refinancing earlier, take new loans during the last six months, have claims from the bailiffs, or start bankruptcy proceedings.
Finally
On-lending to individuals is carried out by credit institutions for profit. If the borrower has several loans, as well as differentiated payments with equal shares in the principal debt and interest, on-lending is beneficial for the individual.