Refinancing of consumer loans
If the borrower is experiencing temporary financial difficulties, they can ask your Bank to provide loan restructuring - namely, the increase of the loan term if you change (reduce) the amount of the monthly payment. It should be noted that not all banks are making concessions to the borrower. Then you should try to refinance the loan.
The scheme of refinancing of loan as follows. The borrower takes a loan from another Bank and use it to repay the debt in the old. Refinancing can not only reduce monthly payments, reduce interest rate and in some cases - to change the currency of the loan to replace several loans one.
Today it is possible to refinance almost any big Bank. Most borrowers carry out refinancing of a mortgage, less - loans and consumer loans.
Today up to 10% of total lending accounted for by refinancing. Banks usually refinance loans with a term of more than 6 months.
In the case of a home loan it makes sense to carry out refinancing just before reaching the five-year period of payments and the balance owed is more than 30%. While complications can arise with the renewal of the agreement, because the loan is essentially secured.
When you refinance, the borrower's creditworthiness is assessed by the Bank, as in conventional lending. Also taken into account the credit history of the borrower. Thus, the presence of arrears of payments will most likely factor in the refusal to grant a new loan.
The documents for the refinancing is fully consistent with the package of documents for obtaining a conventional loan. In most cases, a passport, a certificate 2-pit, the credit agreement, the documents on the outstanding principal balance of the loan debt. For mortgage also essential mortgage documents.
In General, does not always make sense to look for is a program of the refinancing in the Bank, because you can just place a new consumer loan without specifying the purpose of its receipt. Sometimes getting a loan is easier than refinance.
Refinancing on the interbank market
On the interbank lending market one of forms of refinancing of commercial banks are loans from the CBR. The key parameter in this case is the refinancing rate. It is determined on the basis of the dynamics of the economy and inflationary processes.
The refinancing rate — the interest rate on an annual basis, payable, Bank loans, which the Central Bank provided to credit institutions. Today it is 8,25%.
It depend on rates of banks on credits and deposits. Banks attract deposits at a rate slightly below the rate of refinancing, and loans at interest in excess of it.