Loan repayment is a great option for reducing the financial burden. Borrowers trying to solve the problem of lack of free funds with the help of a loan, often take it on unfavorable terms, which is why there are late payments. In order to avoid this, it is possible to refinance at another bank, where conditions are more loyal and interest is less.
The bank, which agrees to refinance, allocates a special purpose loan, which repays the loan to debtors with open delinquencies. The difficulty in this case is only one, the borrower must provide a package of documents confirming the solvency. If, however, the loan was issued on the security of valuable property, all rights to it pass to the bank producing the loan. Most often, this is a way of refinancing long-term loans taken for the purchase of real estate or a car.
Where to go if the bank does not lend
If there is a non-purpose loan with open arrears and a blacklist taken without security, banks will refuse to issue another loan in most cases. Blacklisting financial institutions completely closes all opportunities for profitable lending. The only exception can be young banks that are just starting out and lending at their own risk, thereby attracting customers. What banks give a loan with late payments can be found on our portal, we always provide the most complete information on financial institutions and often update it.
But in this case, it is not worth counting on a large sum, banks, even in the most loyal terms, can offer small loans to unscrupulous borrowers. To obtain them, you must provide a certificate of solvency.
Another solution to the financial problem is microfinance organizations. There you can easily take a loan with current delays, and you do not need to collect a large number of documents, just passport and identification code is enough. A wage certificate or other financial statement is not required.
What are the features of MFI lending?
- Loans are issued for small amounts, usually from 500 to 1 000 dollars, so it will not be possible to solve serious financial problems with the help of microcredit.
- The rate is calculated not every month, but daily, ranging from 0.8 to 3.5% per day of the total.
When figuring out whether it is realistic to take a loan with open delinquency, troubled borrowers often face bank waivers and are forced to choose only from the proposals of microfinance institutions. If you need to solve a temporary problem with funds and in the future is expected to profit, allowing you to repay both the body of the loan and interest, this option can be used. If the financial situation is difficult, and a loan is issued to pay off urgent debts on existing loans – this is the worst option.
It is possible to take a loan with delays in MFIs without problems, such organizations are as loyal to their clients as possible, but after a while money will have to be given. And fines in MFIs for default are much more serious than at the bank, and unpleasant contacts with the security service, which is available in almost every financial institution, are quite possible.
Therefore, before taking a loan with open delinquency in the MFI, you must carefully weigh the pros and cons and evaluate your financial situation, because the financial burden will significantly increase.
Basic rules for choosing a profitable loan
- When deciding where to take a loan with open arrears, it is best to take advantage of the offers of banks, if such an opportunity is present. In any case, the percentage will be less, and the terms of the loan – more.
- If the banks refuse, and it is decided to apply to the MFI, where you can take a loan with current delinquencies within half an hour, you should choose an offer with the possibility of extending the loan. In this way, force majeure situations can be avoided.
- Before you apply for a loan with valid delays, you should carefully read the terms of the contract and find out whether there are hidden fees or service fees. They most often make up a very solid amount.
- Considering proposals where it is possible to take a loan with arrears under the simplified scheme, it is preferable to choose options with the possibility of early repayment without penalties and commissions. Thus it will be possible to pay interest only for the actual time of using the funds.
- It is not necessary to take the amount more than necessary. With a timely payment, the MFI can increase the credit limit immediately, but the interest rate for using the money will be the same.