Refinancing in the market

 

Today, the country has a rather unstable financial situation, which is why many citizens are actively interested in credit products. People can choose for themselves any of hundreds of credit organizations, they check the user for solvency, but there are often situations when the borrower has confirmed this, but unforeseen circumstances have prevented paying the loan on time. Of course, if the situation is critical, you should not allow delinquency and large debts, today you can find a way to solve the difficult situation with payment on the loan without consequences.

Credit refinancing: concept and advantages

Credit refinancing: concept and advantages

Refinancing can be called the issuance of a new loan to repay an open loan on more favorable terms. Loyal terms of such loans imply a reduced interest rate or a longer loan period. You can refinance several loans, even if they are all issued in different organizations. When considering all the benefits of refinancing, you can see that there are a lot of them:

  • First of all, it is an opportunity to resolve all issues of arrears and debts in a very quick time;
  • Monthly payments will be reduced, the solvency of the borrower at the time of payment of the loan will be taken into account;
  • The crediting period will be increased for the convenience of paying the loan;
  • To facilitate the payment of a loan, the user can even provide a security deposit or guarantor;
  • There will no longer be problems with banks that will remind you of debt on loans;
  • There will be several loan debts, it will be enough for the user to slowly pay one loan under the most favorable conditions;
  • The borrower will be able to get rid of currency risks by changing the payment of a loan from foreign currency to domestic.

It can be concluded that refinancing is really a good option to standardize the financial situation of the borrower, as well as to avoid debt on loans.

What are the conditions for refinancing?

What are the conditions for refinancing?

Absolutely any bank wants to have specific guarantees that the user will be able to pay the loan in full and without delay, therefore the requirements in the banks are appropriate:

  • Organizations pay attention to the age of customers, in all companies the restrictions are different, someone sets the age from 23 to 65 years, and someone from 18 to 75.
  • Companies may also have requirements for existing loans, for example, some companies will refinance only if a person on an active loan did not have debts up to a year of use, they can refuse loans that were issued for only a few months.
  • Sometimes companies carefully monitor whether the client fulfills all the requirements, for example, if the user has issued a loan to buy a car, and he has purchased a vacation ticket for himself, then in this case you can get a refusal to refinance.
  • If the user has already issued a renewal or requested a loyalty program, the bank may refuse to refinance him;
  • The user must provide a certificate of employment, as well as his solvency.

A person who decided to apply for refinancing should take this issue responsibly and carefully select a credit company, because otherwise you can get even more fines and get into a debt hole. When choosing a credit company, the user should look at such moments as:

  • For what period the bank can issue a loan;
  • What is the maximum loan amount you can take;
  • Interest rate;
  • Will there be and in what amounts penalties for late credit?
  • What type of payments can I pay for a loan, can I pay in equal installments, or can I pay a loan a smaller amount once a month.

Of course, in order to find a suitable credit institution, it is worth considering several options for these companies.

Refinancing Terms

Refinancing Terms

It is best to consider the conditions of several banks in order to know exactly where it will be more profitable to arrange refinancing without losses and consequences. For starters, you can consider the Idea Bank, it has been operating in the country for more than 28 years, this indicates its reliability and stability, there are also quite loyal lending conditions. The maximum loan amount can be up to 120,000 dollars, the loan term can be selected up to 5 years, the client’s age is limited to 75 years, a certificate of income from the client may not be required, the bank decides this already when applying.

The loan decision will be made in 30 minutes, the bank can refinance even several loans at the same time, it is enough to provide the bank employee with all active loan agreements. After concluding a new contract, all old ones will be immediately repaid. Only one contract will be active, under which it will be necessary to pay a loan.

Crowdlening or loans between individuals

It is increasingly common to find new financing alternatives to the well-known loans that can be obtained through financial institutions of a lifetime. And it is not surprising that there are new and more varied alternatives, especially if we take into account that during the crisis banks have practically refused to offer loans to companies and individuals, which has caused an even greater downturn in our economy.

Allows liquidity to be obtained for many people and companies

Allows liquidity to be obtained for many people and companies

And among the multiple alternatives that have appeared in Spain, especially since 2012, and that have come to stay, there is undoubtedly crowdlending, a very real and attractive financing alternative that allows liquidity to be obtained for many people and companies. That they could not obtain it in the classic financial entities.

These platforms are characterized by having become a way of financing in a participatory way and that allows managing loans between individuals and between companies. Although in Spain it may seem like a somewhat recent alternative, the truth is that these types of platforms have been successfully operating in other countries for many years. A clear example where crowdlending is already a part of the financial day to day is the United Kingdom.

Lenders obtain benefits depending on the profitability of the company

Lenders obtain benefits depending on the profitability of the company

A well-crafted model that provides assured benefits for the lenders that are part of these platforms. In fact, unlike what happens with crowdfunding, where lenders obtain benefits depending on the profitability of the company in which they participate, with crowdlending private lenders always recover the invested capital and some interesting interests for their contribution.

However, both crowdlending and crowdfunding share something in common: investment risk. In both cases, whether the company being financed fails or defaults, the investor is directly affected. For this reason, crowdlending platforms are in charge of accepting only companies (usually SMEs) that are seeking financing and that are relatively safe. This way scares are avoided in the long run.

Many platforms that operate with authorization

Many platforms that operate with authorization

To ensure the maximum possible investment by private lenders within these platforms, only SMEs that have been operating for more than two years and making profits are accepted. In addition, the average capital requested by this type of company is around $ 30,000.

Nowadays, the world of crowdlending is becoming safer and little by little it is being regulated within our borders. In fact, according to the data offered by the National Securities Market Commission (CNMV), there are already many platforms that operate with authorization and many others that are waiting to obtain the corresponding authorization. A clear example of the market moving.