Recently, many people are increasingly asking questions about how to repay a microloan. Refinancing a debt to a creditor is one of the ways to alleviate the financial situation. If it is impossible to timely repay the debt to the organization that issues microloans, there is a risk of falling into the debt hole. This is due to the fact that lending has such conditions under which delay leads to a multiple increase in debt. In this case, refinancing of microloans can help, that is, updating the loan agreement on other conditions, including also changing the organization.
The article will examine in detail how to refinance microloans with arrears.
Refinancing and its procedure
Refinancing a microloan has practically no differences from refinancing a loan at any bank. Its meaning is that a person takes a loan in order to urgently repay another loan. Such a process is applied when the microfinance organization refuses to extend the repayment time and accrues fabulous interest on the existing loan. In this case, a new loan, characterized by a nullified debt time, is indeed a salvation. Refinancing has other attractive aspects:
- the possibility of combining several small ones into one large loan;
- a decrease in interest on the loan and, thus, a reduction in the amount of payments required each month;
- extension of the debt repayment period;
- the procedure is available even with a negative credit history.
Overdue refinancing seems to be a very convenient way. But you need to pay attention to some features.
What loans are refinanced?
Not every microloan will be refinanced by the organization. Limitations are determined by the desire of the company to protect itself from losses in the event that the borrower becomes bankrupt. Most often, the maximum loan amount that is subject to refinancing varies from thirty to five hundred thousand rubles for a period of one to five years. The following requirements apply to the borrower:
- age from 20 to 70 years;
- he must be a citizen of the Russian Federation and registered in the region where the agreement is signed;
- employment (also informal).
A very important condition: at least one payment must be made on the loan and microloan, which is refinanced. With a large amount of the requested amount, guarantors are required. The organization may also require a commitment from the client to ensure that he does not take additional debts during the refinancing period. There are microloans, the refinancing of which is impossible in the classical sense of the term. These include debts to pawnshops, credit cards, and also to private investors. At the same time, they can take a loan in another company to pay off current debt.
Scheme of the procedure
The process of refinancing microloans with arrears in general has the following order:
- the client submits the appropriate application;
- after reviewing and approving it, new credit conditions are set, the parties sign an agreement;
- the company, refinancing the loan, repays the debt of the applicant;
- the client pays the loan to the company in accordance with the updated scheme.
To make an agreement, you will need to provide a number of documents.In most cases, these include a passport, as well as a duplicate identity document (SNILS, driver's license, etc.), a certificate of employment, a copy of the work book and documents necessary for applying for a pledge.
Refinancing firms
There are various types of organizations that you can contact. This is done by the microloan refinancing agency. Consider the features of the procedure in various cases.
Renewal of a loan in a bank
A special procedure for refinancing microloans with arrears in banks is not provided. But it’s clear that any bank gives out consumer loans. Complicated by the fact that microfinance is most often applied to by clients who have a negative credit history or other reasons why the bank will refuse to grant a loan, so you should not count on a change in the lender’s attitude. It is almost unrealistic to refinance a microloan in arrears in a bank.
This method is therefore suitable for those who are for the first time faced with negative financial experience due to an unfortunate set of circumstances. Such an approach makes it possible to combine several loans into one loan, and increase the time it is paid for a considerable period of time. Also, using bank funds, you can refinance microloans in the following way - get a credit card with such a limit that covers the size of the loan or microloan. Credit card terms are pretty loyal, especially when compared to microfinance. The procedure for obtaining a credit card is also quite simple and makes less demands on the client.
Microloan on-lending in microfinance organization
The next way is to apply for refinancing to the microloan refinancing agency. This may be the same company whose loan must be refinanced, or another. Currently, there are MFIs that specialize in refinancing debts owed to other organizations. This way is suitable for those customers who need refinancing microloans and have a negative credit history. However, in essence, such a process is a change in the price of soap; customers are not always able to avoid it.
If you refinance an online microloan in another MFI, you must try to achieve more loyal conditions in comparison with the previous ones. For example, provide an organization of guarantors or a pledge.
When applying to your own company, you can also count on restructuring, that is, a review of the conditions under which the loan is paid. These include a decrease in the rate or an increase in the term. Of course, the company may refuse the client, but it's still worth a try.
There are reasons why the borrower can officially insist on extending the agreement: job loss, delayed or reduced pay, health problems, difficult life circumstances. Naturally, all this requires documentary evidence.
How to get help in refinancing overdue microloans?
Remote procedure
There is the possibility of remote refinancing in some organizations. In this case, the procedure is as follows:
- the client leaves a request on the site;
- fills out a questionnaire that comes by e-mail, which describes in detail the situation;
- the application is processed within 24 hours, a verdict is issued;
- if approval is received, the client sends by mail credit documents about past loans in electronic form;
- the conditions are agreed with the organization, an agreement is signed (at the nearest branch the company or through courier delivery);
- the organization repays debts;
- the client repays his loan according to the new rules.
Overdue refinancing of loans in Moscow is a fairly common occurrence.
Online microloan application: features
Most microfinance organizations have a website with a detailed description of all offers, interest rates and customer requirements. Here you must set the period during which a loan is possible. Most often, MFIs do not issue loans for such an amount that exceeds 20-25000 rubles, the time of using these financial resources is from fifteen to thirty days.
An online application is placed on the website of the relevant organization or on the resources of intermediary firms. The future borrower must indicate personal data, the required amount and the period during which he needs money. Formation and consideration of the application is very fast. In online mode, the client can resort to using the built-in calculator and immediately see the amount of overpayment. Also, there are no holidays and weekends on the Internet, therefore, registration of the application is possible at any time. After some time, employees of the organization will contact the client and invite him to the nearest office to sign the contract and give him money.
Instant online loans and borrowings on VTB 24 card
It happens that money is needed urgently. However, if you have a VTB 24 card, it is quite possible to get them. Such an online microloan will be useful in unexpected situations when unplanned expenses are needed. This will help online lending, which has the following advantages:
- you don’t need to go anywhere - the contract is executed online;
- proof of income, documentation and guarantors are not required, since everything is checked by a credit institution;
- there can be any valid VTB 24 card with the possibility of replenishment: personal, salary, virtual;
- after receiving the transfer, it can be easily cashed at an ATM or bank branch, and then dispose of it as required by the client.
At VTB 24, refinancing of microloans with arrears is also carried out.