Loan debt restructuring: what is it? Loan restructuring - details about loan debt restructuring for individuals How to restructure loan debt

Last update: 03/09/2020

Reading time: 10 min. | Views: 835

Hello, dear readers of the “site”! In this article we will talk about loan restructuring - what it is, what types of loan restructuring there are, how you can restructure loan debt.

After reading the article to the end, you will also learn:

for what reasons is the loan restructuring carried out;
who benefits from this procedure - the borrower or the bank;
what advice do experts give regarding choosing a bank;
what you need to know before restructuring your loan debt.

At the end of the publication you will find answers to the most popular questions on this topic.

So here we go!

Read about what loan restructuring is and how you can restructure loan debt in our issue

Before you start studying theoretical foundations restructuring, you should understand what is meant by this financial procedure.

Loan restructuring– these are special measures applied to debtors who find it difficult to pay the loan. In the process, the interest rate is revised, as well as the size and timing of payments.

The essence of this procedure consists of providing the borrower with certain benefits. The goal is to try to change the difficult situation and restore the possibility of payments.

If the borrower experiences difficulties that lead to the inability to continue making regular loan payments, he should not panic. You should not ignore difficulties and think that the situation will improve on its own. Unfortunately, such problems cannot be resolved without active action. If a borrower avoids communicating with the lender when it is impossible to make payments, he is behaving absolutely wrong.

The best solution in case of such difficulties is to contact the bank. It is important to describe the current situation as honestly as possible. Very often, when the borrower behaves in this way, the lender meets him halfway. As a result, you may receive an offer to carry out a restructuring procedure.

Most often, loan restructuring is initiated for the following reasons:

illnesses or injuries, as well as accidents that lead to loss of ability to work;
the birth of children, parental leave or divorce, which led to an increase in the level of the borrower’s expenses;
loss of primary source of income, including job loss, retirement, business interruption, delays wages employer;
changes by the lender to the terms of loan repayment;
if the contract is executed in foreign currency, there will be a strong change in the exchange rate.

The decision to restructure loan debt is always made V individually . But in order for the bank to accommodate the borrower, the reasons must be very serious. ☝ Moreover, You may need documents that confirm the difficulties, as well as the current financial situation of the borrower. But in some cases, restructuring is carried out by banks in order to generate income.

The procedure can be applied to not only individuals, but legal entities. Even states sometimes carry out debt restructuring. Similar to this procedure is on-lending or .

Often, restructuring is carried out after a trial regarding. In any case, this procedure has an effect on. However, you should not treat it solely as a negative process. Often it is the only way to get out of the debt hole. Restructuring can help restore solvency.

2. Who benefits from loan debt restructuring – the bank or the borrower? 💸

Many people try to understand: Is restructuring beneficial for debtors or does it only benefit the creditor (bank). In fact, most often this procedure gives certain advantages both first and second:

After completing the restructuring, borrowers are given a pause, which allows them to correct their financial situation;
At the same time, the creditor receives payments on overdue debts, which are disadvantageous to him.

A banking organization is interested in minimizing↓ the number of unpaid loans. This is partly due to the fact that the financial markets supervisory authority ( Bank of Russia) requires creating reserve for impaired loans, as well as those for which payments are not received.

The creation of such a reserve is carried out from the net profit of the credit institution. Its size is quite large. The less ↓ the overdue debt, the less ↓ amount will have to be spent on creating a reserve. Ultimately, this will lead to an increase in net profit. Therefore, it is more profitable for the bank to restructure the loan than to recognize it as bad.

If we consider the procedure from the debtor's point of view, he can receive serious benefits. However, in practice, restructuring is used quite rarely.

In fact, if the borrower understands that repaying the loan on the same terms is becoming difficult for him, there is no point in waiting for the situation to worsen. It is better to contact the creditor, explain the situation and request a restructuring.

Banks, realizing that the situation is truly difficult, often accommodate their clients halfway. They may change the payment schedule or reduce their size. By the way, in some cases, credit institutions themselves offer their clients the procedure in question. This is due to the desire to optimize cash funds.

To proceed with restructuring, the bank requires the following conditions to be met:

serious financial difficulties of the borrower, which may become a reason for carrying out the procedure;
the debtor has never allowed any overdue debt to arise in the past;
the client has not previously used restructuring;
The borrower's age does not exceed 70 years.

💡 Note: It is much easier to arrange a restructuring with a credit institution for secured loans, For example, subject to collateral.

Taking into account the attitude towards the restructuring procedure, banks can be divided into:

Loyal banks They often write off fines and penalties from clients, after which they draw up a new loan agreement on more favorable terms. Despite the fact that you will still have to make payments on the loan, this option is the most profitable for the borrower. However It makes sense to ask the bank for confirmation that the previous loan agreement has in fact been terminated. This fact must be documented. To terminate the previous contract, a special agreement is drawn up, which is signed by both the bank and the borrower, or the client is simply issued a certificate.
Hard cans are more categorical towards the client. Such creditors begin to threaten the debtor with debt collection through judicial authorities and collection agencies, and other serious consequences. Only if the client does not resume payments, he is offered to draw up a new contract. In this case, the loan amount increases by the amount of accrued penalties, fines and interest. Of course, such conditions are not beneficial to borrowers. However, they can be used in situations where when there is simply no other choice.

If the bank refuses to carry out the restructuring procedure or offers not profitable terms, perhaps it makes sense to initiate bankruptcy proceedings.

Main types of loan debt restructuring

3. Types of loan restructuring - 7 main types 💎

There are several types of loan debt restructuring. Most often, the choice of them is determined by agreement between the borrower and the credit institution. Much less often the right to choose is given to the client.

Below are most common types of restructuring , which are used in most credit institutions in Russia.

Type 1. Credit holidays

When applying for a credit holiday, the borrower is allowed not to make loan payments for a certain period of time. The opportunity not to repay the loan may be provided for a period from several months to a year.

The most common reasons for such restructuring are:

birth of a child;
loss of job;
conscription for military service.

Credit holidays are the best option for the borrower. During the absence of the need to make payments, the debtor manages to improve the financial situation. He can get a job and find other sources of income.

Worth considering! For banks, credit holidays turn out to be unprofitable. During this period, the financial institution receives absolutely no payments. Therefore, this type of restructuring is used extremely rarely.

One of the types of credit holidays involves the absence of payments on the principal debt, subject to monthly interest payments. In this case, you will have to continue paying part of the debt. But in any case, you will be able to get a break and temporarily get rid of claims from the bank.

Type 2. Rate reduction

One type of restructuring is to reduce the interest on the loan. This option is possible for debtors with a clean credit history. Read about it in one of our articles.

When using this type of restructuring amount of overpayment does not change, and sometimes increases. However, the size of monthly payments is reduced, which allows you to cope with financial problems.

Type 3. Write-off of penalties and fines

Some credit institutions write off borrowers as part of a restructuring penalty, which is the total amount of fines and penalties. Sometimes this type involves a deferment for making such payments.

Something to keep in mind : such restructuring can be counted on only in extreme cases. Documentary evidence of serious financial difficulties or a court declaring an individual bankrupt is required.

Type 4. Extension of the loan agreement

Prolongation or renewal of a loan agreement involves increasing the loan term. At the same time, the size of the monthly payment is reduced ↓. 📛 It is important to understand: such restructuring leads to growth overpayments on the loan.

Extension can be an excellent opportunity to get a deferment until the end of the loan. In this case, payments are not cancelled. Only the time period increases.

Type 5. Change in loan currency

Before the crisis, many borrowers took out loans in foreign currency. However, in Lately the exchange rate has increased significantly⇑. As a result, it became almost impossible for most debtors to make payments on such loans.

Debt conversion in rubles turns out to be beneficial for borrowers. For the bank this means the loss of part of the profit. That is why the type in question is used extremely rarely.

Type 6. Reducing payment amounts

This option is very similar to prolongation, that is, increasing the term. These two types differ only in the principles of the procedure.

The use of the restructuring under consideration involves automatic increase in loan term. At the same time, the total overpayment also increases . This is explained by the fact that the borrower continues to pay interest on the total amount of debt.

Type 7. Combined

This option involves a combination of elements of several types of restructuring. This procedure is quite complicated and is not formalized in all banks. There needs to be a good reason for using such a restructuring.

Thus, There are various loan restructuring options. They differ in terms of registration and complexity of the procedure.

5 consecutive stages of loan restructuring

4. How to restructure loan debt - step-by-step instructions 📝

Regardless of the type of restructuring, the procedure is carried out according to the same scheme. Experts recommend studying the algorithm in advance to make it easier to navigate the stages.

Step #1. Filling out the form

The form to fill out can be obtained from the bank. In this case, it is not at all necessary to go to the department; you can find the form online on the website. The questionnaire contains information not only about the applicant, but also about the loan for which he wishes to arrange a restructuring.

To assess the financial capabilities of the debtor, the bank requires information about the amount of its income, which is confirmed by the relevant certificate, as well as about basic expenses. It would be useful to indicate a list of property that is owned by the borrower.

In the section of the questionnaire that is dedicated to the current loan, you must reflect monthly payment amount, balance of debt. In addition, it is of great importance reason for wanting to restructure. If the procedure is planned to be issued in relation to, additionally You will need to submit documents to the bank for the real estate that serves as collateral.

Some banks allow you to specify how the borrower wishes to carry out the restructuring. Of course, there is no guarantee that the debtor's wishes will be carried out. However, in any case, the credit institution will take them into account.

Step #2. Sending the form to the bank

At this stage, you must submit the completed application form to the credit institution. This can be done not only by visiting the bank office, but also in online mode .

Step #3. Communication with a loan specialist

When the application has been reviewed, the borrower will be invited to the bank branch. Here, in the process of communicating with a credit specialist, the current situation is discussed, and a choice is made. optimal scheme to carry out restructuring.

Step #4. Provision of documents

At this stage, you must provide a package of documents to the bank. Traditionally it includes:

application for loan restructuring;
original and copy of identity document;
a valid loan agreement;
documentary evidence of the current financial situation.

Step #5. Drawing up a restructuring agreement

If, based on the results of consideration of the application and submitted documents, the bank makes a positive decision regarding the restructuring, a new agreement is drawn up. It details the restructuring scheme that will be used.

Take note: if the original contract involves guarantor or co-borrower, carry out restructuring without their consent it won't work.

Before signing a new loan agreement, the borrower must not only read it carefully, but also make sure that the previous one is closed. Most often, confirmation is either signed agreement, or the corresponding reference.

☝ Besides, When carrying out restructuring, you should not sign an agreement until the debtor is presented with a new payment schedule. It is important to make sure that the borrower can handle the payments.

If a credit institution refuses to carry out restructuring, experts recommend that the debtor request written reasoned confirmation of a negative decision .

In the future, if the bank sues the borrower, having such a document can be very useful. If the court sees a desire to pay off debts in combination with the bank’s lack of desire to meet halfway, it is quite possible that the decision will be to oblige the creditor to carry out a restructuring procedure.

5. How to choose a credit institution for restructuring - expert advice + review of the TOP 3 banks 🏦

Loan restructuring is often used by debtors to pay off an existing loan by taking out a new one. If the loan was received on unfavorable terms, it makes sense to contact the same credit institution to take out a new loan to pay off the existing debt.

When choosing a bank where the restructuring will be carried out, the borrower must take into account a number of criteria:

reputation of the credit institution;
the amount of commission charged when drawing up a new contract;
bank policy regarding restructuring;
conditions for granting a new loan.

Do it yourself right choice from the huge list of banks operating in Russia, it can be difficult. Therefore, it makes sense to turn to the ratings compiled by experts. Below are 3 popular credit organizations who actively promote the restructuring service.

1) VTB Bank of Moscow

VTB Bank of Moscow provides a service for restructuring loans, including those issued in other credit institutions. It is enough to submit an application so that the debt load is on family budget decreased significantly.

The bank proposes restructuring civil servants on special conditions.

There are a number of advantages of the bank compared to other similar organizations:

the borrower can choose the most convenient date for making monthly payments;
insurance is taken out on a voluntary basis;
the debtor can count on long credit holidays.

It does not take much time to complete an application for restructuring. After submitting the application and providing the necessary documents, the bank makes a decision within ¼ hours.

2) Sovcombank

Sovcombank is a unique credit organization that helps citizens who are rejected by all banks. Contacting this company is the easiest, but at the same time quite in a reliable way improve your credit history. Here each client is provided individual restructuring program.

The debtor just needs to fill out an application online on the credit institution’s website. After approval, all you have to do is visit the office of the credit institution. Here, upon presentation of an identity document, you can arrange a restructuring.

Among the advantages of Sovcombank are:

the possibility of reducing ↓ payments, increasing loan terms;
preservation of the collateral;
registration of credit holidays.

3) Interprombank

Interprombank operates on the market with 1995 of the year. Today, clients are offered a full range of financial services.

When completing a restructuring in the bank in question, you can count on a number of advantages:

the ability to combine any number of loans issued by any banks;
the total amount of loans being restructured can reach 1 million rubles;
the opportunity to reduce↓ the financial burden on the family budget.

To complete the procedure, simply submit an application online and then provide Required documents and sign a restructuring agreement.

To make it easier to compare the banks reviewed, the main features of the restructuring in them are summarized in the table below.

Table: “TOP 3 popular banks for restructuring + terms of service”

Credit organisation	Possible amount for restructuring	Contract term	Bid	Other Features
VTB Bank of Moscow	Before 3 million rubles	From six months to 5 years	Before 15 % annually	You may not make payments during the holiday period
*Sovcombank*	Maximum 3 million rubles	Before 3 years	12 -14 % per annum	Most loyal to pensioners and older people
Interprombank	Before 1 million rubles	From six months to 5 years	14 % in year	The borrower has the right to cancel commissions and insurance payments

📎 Read also the article about how, even with a bad credit history without certificates and guarantors.

6. What to consider before restructuring a loan - useful tips and recommendations 📣

Before starting a loan restructuring, the borrower must understand why he is doing it. It is important to realize: will the procedure actually lead to an improvement in the financial situation?.

If the debtor does not understand the financial and legal features of the restructuring, he may find himself in a situation where it will no longer be possible to service the debt. Ultimately, the situation may lead to litigation. The result will be very unpleasant cooperation with bailiffs, who will be given the right to collect the debt from the borrower.

To avoid serious troubles, you will have to be extremely careful about the procedure. The following points should be carefully analyzed:

is it possible to write off fines if they are included in the final amount of debt, you can ask to reduce↓ the amount or use a one-time penalty instead of a monthly penalty;
What type of restructuring is used is of great importance;
Before signing the contract, you should calculate the total amount of the overpayment.

If there is still time left until the end of the problem loan no more than six months , experts recommend not resorting to restructuring, but looking for other options for repaying debt.

🔔 In fact, it can be difficult for a person without special financial education to understand all the features of restructuring. Often, the conditions that a credit institution presents as the most profitable turn out to be unbearable in practice.

Often banks completely refuse to formalize restructuring. At the same time, they refer to a damaged credit history and other circumstances. In this case, it makes sense to contact specialized organizations that can help you get a loan on the most favorable terms.

7. FAQ: answers to the most popular questions 💬

In the process of studying information about restructuring, people who do not have a financial education have a huge number of questions. To save our readers time, we answer the most popular ones.

Question 1. How is loan restructuring different from refinancing?

Many people believe that restructuring And refinancing are identical procedures. However, this opinion is incorrect. It is important to understand what it is difference between these procedures, and what impact they have on your credit history. Only with full understanding can you expect that the procedure will help improve your financial situation.

Refinancing and restructuring: what's the difference

Refinancing is a financial procedure when one loan is repaid using funds received during the process of obtaining another. In other words, a new loan agreement is opened while the old one is closed.

Refinancing can be issued either at the bank where the current loan was received or at any other credit institution. It is possible to carry out the procedure for several loans at once, even obtained from different banks. As a result, a large number of loans can be combined into one.

When refinancing, there is no negative impact on the borrower's credit history. The report will show that one loan agreement is opened and another is closed.

Refinancing is a great way to reduce your debt load. Borrowers who have certain financial knowledge and experience constantly analyze changes in the market situation. Bank lending conditions are determined by a large number of factors, including the size Central Bank key rate.

Should be understood: The credit institution from which the current loan was received has the right to refuse the debtor to refinance it. Even if the market situation changes, the bank is not obliged to soften lending conditions.
However, the borrower in such a situation can apply for refinancing to another credit institution. If he has no problems with his credit history and meets the bank’s requirements, an agreement will be drawn up on more favorable terms and the current loan will be repaid with the funds received.

Before proceeding with refinancing, the borrower must carefully analyze all the terms of the agreement. Great importance should be given loan term, interest rate, and monthly payment amount.

✍ Should be considered, that some credit institutions establish commission For refinancing or for a certain period of time, the interest rate is increased. Therefore, before signing the contract, it is important to read it carefully.

No credit institution would want to see citizens with an unfavorable rating among their clients. Therefore, the decision on the application largely depends on the credit history of the debtor.

Unlike refinancing, restructuring is something different.

Restructuring– this is a change in the terms of the current loan agreement. The procedure can be completed at your current bank. It will not be possible to switch to another one.

Most often, restructuring is resorted to when the borrower has serious financial difficulties and can no longer service the debt on the same terms.

The restructuring method is determined individually for each debtor, it can be:

reduction↓ interest rate;
reduction↓ of the monthly payment;
write-off of accrued fines and penalties.

You should always review the terms and conditions carefully. Each bank develops them individually. Restructuring does not always turn out to be beneficial for the client. Often, having agreed to visually favorable terms, the debtor is faced with increase overpayments .

Many people are concerned How does restructuring affect credit history? . It all depends on when an agreement on the procedure is reached. If you managed to do this on time, only the closing of the loan will be visible on your credit history report.

However, in most cases, restructuring is resorted to when the debtor finds itself in a hopeless situation. Most often this happens when the loan is already overdue. In other words, the debtor’s credit rating at this moment is already decreased ↓. Naturally, this cannot but be reflected in your credit history.

To make it easier to compare the processes of restructuring and refinancing, we have presented the main features in the table below.

Table: " Distinctive features refinancing and loan restructuring"

Criterion for comparison	Refinancing	Restructuring
The essence of the procedure	Allows you to save money by reducing overpayments and repaying the loan on more favorable terms	The last way to solve debt problems out of court
Where is it issued?	In any credit institution	Only where the loan was originally received
Who can apply	Citizens with a high-quality credit history	Borrowers even if there are arrears
What impact does it have on credit history?	None, in the report it looks like a regular loan	Does not affect if completed on time
Additional expenses	Often accompanied by a commission	Most often issued free of charge

📌 Thus, Refinancing is carried out to make debt repayment more profitable. In contrast, restructuring is used when it is necessary to get out of a debt hole.

Question 2. How many times can a loan be restructured?

At the legislative level, there is no restriction on the number of requests a debtor makes to a credit institution with an application for restructuring. It turns out that for each loan agreement you can count on such a procedure.

However, you should understand: If, after restructuring, the debtor continues to delay without serious grounds, he is unlikely to be able to count on the procedure being carried out again in the future. Most likely, the bank in this service is simply will refuse .

We should not forget that absolutely all information about the loans issued, as well as the quality of their servicing, is reflected in borrower's credit history. detailed information regularly sent by banks to credit bureau .

Lenders use the information contained in your credit report not only when issuing new loans, but also when applying for refinancing or restructuring. Therefore, after completing the procedure in question, it is important to adhere to the new schedule. This will keep your credit history at an acceptable level.

If the borrower has a really difficult situation, but the bank refuses to carry out restructuring, the lender may resort to other measures to repay the debt. Most often used for this purpose:

requirement to repay the remaining debt in full ahead of schedule;
transferring the loan for collection to collectors;
going to court.

Question 3. What is the procedure for restructuring an overdue loan?

When applying for restructuring of an already overdue loan, you should keep in mind: Most banks do not write off fines, penalties and penalties . As a result, the amount of debt under the new agreement increases by the amount of these payments.

In order not to aggravate the situation, before signing a restructuring agreement, you should carefully analyze it. If it turns out that the fines are too high, the best solution will go to court. But such a measure should be resorted to only if the reason for the delay is quite serious. Moreover, the court will require documentary evidence of the existing financial difficulties.

If the situation is really serious, the decision will most likely be made in favor of the borrower. This usually happens when the reasons for the delay are job loss, serious disease, assignment of disability And so on.

According to the results judicial trial The bank may be required to increase the loan term and exempt the borrower from penalties. You will only have to pay the principal amount of the debt.

If there are delays, the restructuring procedure will include the following steps:

filling out an application for restructuring indicating the reasons for the financial difficulties encountered;
carrying out an analysis of the submitted application by the credit institution, as well as the reasons indicated therein;
making a decision based on the results of the review;
the bank's offer of various types of restructuring to the borrower to reduce financial burden. To do this, it is necessary for bank employees to make sure that there are objective reasons for the deterioration financial condition debtor;
sending a package of documents by the debtor to the credit institution, which is necessary for carrying out the restructuring procedure;
preparation by an employee of a credit institution of a restructuring agreement. This agreement reflects the terms of debt repayment;
careful study of the contract by the borrower. Only after checking it thoroughly does he sign it.

If the initiator of the restructuring procedure is a bank, even if there is overdue debt, the debtor has the right to agree to the terms offered to him or to refuse them.

To make the right choice, you should calculate amount of overpayment in case of agreement to restructuring. Also it is important to clarify whether the penalty will be included in the total amount of debt.

8. Conclusion + video on the topic 🎥

Loan restructuring is used when the borrower has serious difficulties that prevent high-quality debt servicing. However, before agreeing to the procedure, you should analyze how beneficial it is.

The situation should be studied from two points of view. On the one side, restructuring helps cope with unsustainable financial burdens. On the other side, When the contract is extended, the amount of overpayment increases significantly.

Important things to consider: in some cases, restructuring is the only correct solution. It will help avoid trial. If completed in a timely manner, this procedure allows you to maintain a positive credit history.

And also a video about what credit history is, how to find it out and whether it can be corrected:

That's all for us.

If, as a result of debt servicing, payments become unsustainable, may you be able to arrange a restructuring on the most favorable terms!

If you have any questions, comments or additions on this topic, write them in the comments below. Don't forget to also share the article on social media. networks with your friends. See you again on the pages of our online magazine!

If a bank has a lot of overdue debts, its reliability rating drops, so credit institutions have methods for working with borrowers who suddenly find themselves in a difficult financial situation. One of them is loan restructuring. In this article we will talk about the real application of restructuring, its types, benefits and disadvantages.

According to statistical studies for 2020, in Russia about 50% of borrowers give more than half of their income to repay loans. This situation indicates high level credit burden, and if the problem is not solved, the population will become completely impoverished, which does not contribute to demographic growth, the strategic goal of our President. The Central Bank demands loyalty from banks, banks offer people installment plans and holidays.

Restructuring in banks: what is it?

Restructuring is a procedure in which the bank and the borrower revise the existing loan agreement and create new conditions. The changes are being made in order to reduce the size of the monthly payment and reduce the level of burden on a person in a difficult situation. Typically, a restructuring plan is signed as an annex to the main loan agreement.

Features of the restructuring are as follows.

It can be offered by the bank, or the borrower has the right to independently request an installment plan. Banks offer to restructure the loan after debt appears. If a client applies for a service, documents are needed indicating the difficult situation.
It involves extending the loan term or subsequently increasing payments. In other words, this is not a charity event; the bank expects to make money on interest.
If a person with a bad credit history who has previously made serious delinquencies applies for the service, he will most likely be denied. Restructuring is mainly provided to reliable clients; the portrait of such a borrower is dictated by the rules domestic policy each bank.
The service is provided mainly in reputable banks. MFOs or other microcredit institutions do not consider restructuring.
Basically, the bank agrees to provide the service only in cases where long-term and large loans are involved. If you borrowed 20,000 rubles for a period of 1 year - 99 versus 100, that the restructuring will not be approved.

Types of loan debt restructuring

There are 3 types of main preferential services offered by banks:

restructuring.

If serious unfavorable circumstances have arisen and you are looking for a way to reduce the burden on your loan agreement, check out the types of preferential services! They are different and suit specific situations.

	Credit holidays	Refinancing	Restructuring
What is the service?	The bank provides the borrower with a period (for example, 2 months or 1 year) during which he: may not pay the loan at all; pays only % for using the loan product. At the end of the grace period, the monthly payment: remains the same as it was before the service (but the term of the loan agreement is extended); increases (but the loan term remains the same).	The bank offers to buy out all existing loan agreements and issue one large loan on favorable terms: in shortened loan terms; at a reduced interest rate.	The bank proposes to change the terms of the old agreement to make debt repayment accessible. For example: increase the loan term; reduce the monthly payment; write off penalties and interest.
Conditions	As a rule, it is assumed that the loan term will be increased, but the debtor pays interest and other bank charges during the grace period. The bank does not lose anything, and the client gets a break and the opportunity to improve their financial situation.	All microloans are being combined into one. The conditions imply a reduction in the loan rate - more profitable than in old loans.	Standard conditions: reduction of monthly payment due to prolongation of the loan agreement. For example, if you previously paid 10,000 rubles each, and the loan term was 4 years, then after restructuring it will increase to 6 years, but at the same time you will pay 7,000 rubles.
Bank where you can apply for the service		To any bank	The one where the loan agreement was opened
Who is the service suitable for?	Borrowers of mortgage loans, car loans and others with long-term contracts	Borrowers who have several microloans and credit cards on unfavorable terms	For borrowers in difficulty

In what cases is loan restructuring required for an individual?

The main factor is the occurrence of circumstances when it is difficult for the borrower to repay the loan. That is, you can contact the bank in the following situations:

when the delay lasts 1-2 months;
when the delay has not yet occurred, but is inevitable if payments are not reduced.

Of course, if there are prerequisites for a quick deterioration in your financial situation, it is better to contact bank employees in advance.

The bank itself may offer to restructure the debt, but it is better not to delay, since if there are long delays, the bank is more likely to sue.

Requirements for the borrower:

solvent age - that is, he has not yet reached 65 years of age;
similar requests have not been made previously, although the credit history includes loans taken out and successfully closed;
there is documentary evidence of a complicated financial situation;
there were no delays.

The policy of some banks only provides for an independent proposal for restructuring, that is, contacting the bank will not yield anything.

Advantages and disadvantages of restructuring

Let's start with the positive aspects.

Your monthly payment will be lower.
The bank will not go to court to collect the debt.
You will not lose your property.

If you are worried about whether you can take out a loan after restructuring, then your fears are in vain. This is one of the main advantages of the service - it does not spoil your credit history.

But if there are delays before the restructuring is completed, they will be indicated in the credit history. Therefore, it is important to contact the bank for help in a timely manner.

As for the disadvantages:

The service is not always free; a fee must be paid.
The borrower will overpay interest on the loan.
You need to collect a hefty package of documents.
If you have already used similar services, the chances of receiving benefits again are low.

Who can get a restructuring in 2020?

Any client has the right to apply for restructuring. But the following categories have a greater chance of approval:

entrepreneurs who find themselves in difficult circumstances;
borrowers who took out a loan in foreign currency;
those who suffered as a result of environmental, man-made, natural disasters or incidents;
employees who were fired as a result of reorganization, merger, or liquidation of the company;
workers whose wages have been officially reduced;
borrowers who transferred serious illness or have temporarily lost their ability to work.

Note that quite often borrowers who have taken out a home loan apply for the service. Thus, the conditions for restructuring a mortgage loan require compliance with the following requirements:

the borrower does not have property, the proceeds from the sale of which would be sufficient to repay the debt;
the borrower and his family have a combined income level where each family member has no more than 3 subsistence minimums;
The borrower has only a mortgaged apartment (house/room), no other residential property.

We fill out an application for loan restructuring

Let's figure out how the procedure is carried out and how to prepare documents for the bank.

First of all, an application indicating the loan number, the amount of the monthly payment, and the reasons why payment in the previous amount is impossible. You must also attach the following documents:
- medical report if insolvency arose due to loss of ability to work;
- work book upon dismissal from work;
- on the right of ownership of property;
- other confirmations.
The list of documents is individual, it is determined by each bank based on the circumstances. Please note that there are also sample applications on banks’ websites. It is necessary to indicate the actual and desired monthly payment, the reason for insolvency, and sources of income.
The documents are sent to the bank department for review.
The manager contacts the borrower to confirm the relevance of the request for restructuring. If necessary, the manager requests additional documents and information.
If the decision is positive, an additional document is issued. agreement to the loan agreement
If the terms are satisfactory to the borrower, the parties sign the document.

What to do if your loan restructuring request is denied?

In practice, service refusals occur frequently, for different reasons:

short loan term - for example, the loan was taken out for a year, you have 2 months left to pay;
small amount of debt;
reasons for restructuring are not serious enough;
the borrower has previously been in arrears.

In any case, if you refuse, demand official document. Having it in hand, the borrower has the right to contact the bank again and achieve his goal.

How to achieve restructuring through court? It is carried out through the bankruptcy procedure of an individual, while the borrower does not receive bankrupt status. The main condition is the presence of a stable source of income.

Judicial restructuring is more profitable than banking and presupposes the following conditions:

termination of accrual of penalties and late payments;
fixation of the principal amount of the debt;
preservation of property for the debtor;
suspension of enforcement proceedings;
forming a plan to repay the remaining debt on terms that do not violate either the interests of creditors or the interests of the debtor;
the ability to restructure all debts at once;
The schedule may provide for the repayment of debts for a period of up to 3 years.

Ways to restructure loans

Extension of the loan agreement	Provides for an extension of return periods. The client pays less, but longer. As a result, the overpayment comes out of interest.
Changing the loan currency	Provides for the recalculation of the balance of debt from foreign currency into rubles. Mostly clients are people who took out a loan before 2015.
Write-off of commissions, charges and penalties	It is of interest to borrowers who have a long arrears. Conditions: the borrower provided documents on valid reasons for the delay; the borrower went to court to declare bankruptcy of an individual.
Decline interest rates	Of interest to borrowers of mortgages and other long-term and large loans. It assumes a reduction in the interest rate to the market rate - for example, from 17% to 12%.
Refinancing	It involves the repurchase of existing loans, consolidation of debt into a single loan on more favorable terms. For example, if a client had 3 microloans from an MFO at 1-2% per day, then bank refinancing at 15% saves the situation.
Credit holidays	Introduction of a certain period of 3-4-5 months (on average up to 1 year), during which the client pays either interest on the loan or pays nothing. After the end of the grace period, payments remain at the same level (if the contract was extended for the duration of the grace period) or increase slightly.
State restructuring programs	The state offers programs to reduce the credit burden on the average Russian family. In 2019, mortgage holidays were introduced - a deferment in payments for six months.

Restructuring and Russian banks: how does it work in practice?

Restructuring is the prerogative of reputable banks; such services are practically not provided in small credit institutions. Below are the conditions under which it is provided Russian banks.

In Sberbank There is a special section on the official website where you can download a completed application for restructuring. It notes:

property owned by the borrower;
reasons for deterioration of financial situation;
availability of other loans;
information about the loan agreement itself;
income;
how much per month the client wants to pay.

At Alfa Bank Consider restructuring consumer loans only after violations of the payment schedule. More often, the service is provided for loans secured by real estate (mortgages).

In VTB, Pochta Bank, Tinkoff Bank, the restructuring conditions are practically no different from those presented above.

Important! If you are in arrears or have legal proceedings for collection, and the bank refuses to cooperate, you have the right to file for bankruptcy and petition for judicial restructuring. Usually in such cases, banks become more loyal and are ready to negotiate with the debtor.

In bankruptcy proceedings, you cannot count on debt repayment, and restructuring will ensure slow but sure debt repayment.

Delay and difficult financial circumstances are not yet a reason to give up. There is always a way out, but it is important to consider the risks. Our lawyers will help you solve your debt problem. We will answer your questions and help you create an action plan. All you need to do is seek advice!

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Video: our bankruptcy services for individuals. persons

Is loan restructuring profitable?! – we will consider and study this process in more detail in the material.

When a borrower has difficulty repaying a loan, financial institutions offer debt restructuring.

The essence of their programs is to change the key terms of the agreement in order to reduce the level of financial burden.

Introduction to restructuring!

This measure implies that the bank provides the opportunity to change certain provisions of the agreement. The client does not see any “real” money.

In fact, it will be noted on paper that the financial institution issued a new loan and ensured repayment of the old loan.

Traditionally, from a practical point of view, this process involves increasing the period within which the loan is repaid in order to reduce the burden on the debtor.

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In words, the promises of banks look very attractive, but practice cannot boast that this is so in absolutely all cases. After all, a client who applies for this procedure is regarded by the bank as a problematic “instance.”

And for such individuals there are unlikely to be favorable conditions. In fact, it turns out that when agreeing to this type of relationship, borrowers themselves agree to a high interest rate in comparison with the old loan.

Reasons for restructuring!

The revision of the general contractual conditions can be carried out at the initiative of both parties.

Borrower. This is true when it is not possible to repay the debt in full. He contacts the financial institution and creates a request to break the monthly contribution into small parts.
Lender. A financial institution makes an offer to reduce the loan burden.

Traditionally, there are some possible causative factors for this activity:

dismissal;
being on parental leave;
army conscription;
disease.

By concluding such a deal, several fundamental results can be achieved:

maintain a favorable level of credit statistics;
prevent a financial institution from filing a lawsuit;
reduce the monthly payment amount;
prevent penalties.

Based on these data, it is already possible to draw some conclusions regarding the profitability of this event.

How profitable is debt restructuring?!

When a client has serious delinquencies due to job loss or a decrease in wages, as well as another financial hole, he has the right to take advantage of the restructuring option.

Such a service can only be provided in that financial organization, in which the loan was processed. Financiers make changes to the loan agreement drawn up. They lie in several directions.

Financial institutions that actively offer such services are also not left without benefits:

get the opportunity to comply with the repayment schedule and reduce the total share of overdue loans;
lead to a more improved quality of the loan portfolio;
have a chance to avoid lengthy proceedings, which saves time and money.

As for the client side, she can also count on receiving a certain number of benefits:

preventing a negative loan record if the debt is short enough;
prevention of legal proceedings with the authority, and this seriously affects the overall reputation of the client;
the absence of various types of penalties and penalties assessed by the bank;
the ability to avoid falling into default, since the calculator recalculates according to the repayment scheme and helps establish the minimum monthly payment;
preventing the confiscation of property assets to compensate for debt obligations within the framework of a court decision.

On this basis, you can conclude whether loan restructuring is beneficial and how much.

If we are talking about increasing the term!

This type of transaction will take place in a situation where the borrower needs to reduce the size of the monthly payment. For these purposes, the company increases the issuance period, and often it can be significant.

This process always implies an increase in the amount of the total overpayment, which turns into unprofitability. As part of the restructuring process, a simple unspoken rule always applies: the longer the extension period, the greater the amount of overpayment observed.

This is due to the accrual of interest monthly on the balance of the debt, and as the total number of months increases, the accrual of interest also increases.

Therefore, when applying for a restructuring of this type of loan, you should immediately prepare for partial repayments ahead of schedule.

If this is a credit holiday?!

This option involves increasing the term of the existing loan at the bank’s discretion. The period increases by a total of 3-12 months. During this time, the borrower receives a deferment in payment of the principal debt amount.

For example, for six months he may not make payments until his financial situation reaches a state of stability. Notwithstanding this fact, the payment of interest remains valid.

So the client continues to make the payment, but it will be much smaller since it consists solely of interest.

Complete exemption from payments!

Unlike previous options, in this case the overpayment remains virtually unchanged. The bank simply freezes payments for a while, as well as increasing the loan term due to the fact that for a certain period of time the borrower will not pay anything at all.

It is important to take into account the fact that the bank retains the right to increase the interest rate.

During restructuring on a banking initiative!

If this procedure is carried out after a long period of delays and penalties, then the loan amount will contain a certain number of penalties and fines.

And this suggests that a certain percentage will run into them. So in this situation there will be a huge impact on the overpayment.

Penalties written off!

This is a fairly profitable option for the process, taking into account the fact that fines and penalties for delays are considerable. Therefore, we can assume that there will be a decrease in the total amount.

Transfer to another currency!

Due to fluctuations in foreign currencies, the financial situation of many borrowers becomes precarious. Properly implemented restructuring measures will reduce the total amount of payments and overpayments, as well as improve lending conditions.

The above options will allow you to answer the question of whether it is worth restructuring the loan. After weighing all the pros and cons, you can count on a clear result.

What is needed for restructuring?!

In order to initiate the procedure, the first thing you need to do is.

Within this document, several data are indicated:

number and date of the agreement;
options for making an initial payment;
size indicator of the received loan limit;
amount of repaid debt;
contribution amount;
date of last payment events;
the time when the first delay occurred;
detailed description of the causative factors of missed deadlines.

Traditionally, financial organizations require a certain list of documents to be attached to the application:

ID card of a citizen of the Russian Federation;
certificate from a medical institution;
a copy of the loan agreement;
work book (if the reason was dismissal);
a reference document from the employment center stating that you are registered, as well as materials on the amount of the benefit that is assigned;
document from the place of work in form 2-NDFL.

Impact on credit history!

To avoid risks to your credit history, you should contact the lender before a delay occurs.

If the lender agrees to change the terms of the agreement, information about the borrower’s problems will not be sent to the BKI. The fact of non-fulfillment of obligations will be reflected in your personal situation if you contact the bank after the debt has arisen.

Based on the duration of the payment delay, the extent to which the situation worsens may be:

weak– if the restructuring is carried out within a month from the time of delay;
average– if there are several violations of deadlines, this is called regular evasion of payments;
high– this procedure is carried out at the initiative of the financial organization, and this indicates that the case has reached the court.

How many times can the procedure be performed?!

Borrowers are interested in how many times a loan can be restructured. The number of applications for this purpose is not limited in any way from a legislative point of view. It all depends on the personal capabilities and preferences of the lender.

If after this event you again stop depositing amounts into the bank account, there is a high probability of receiving an unreasonable refusal.

The creditor also has the right to the following:

requirement for early termination of the contract;
transfer of a debt obligation to collectors;
filing a lawsuit to terminate the relevant contract.

If measures have already been taken, but your situation remains at the same level, you can act as an initiator.

How to restructure loan debt?- a pressing question for all borrowers with problem loans from banks.

Credit debt restructuring- a procedure initiated by the parties to a loan agreement or one of the parties, aimed at revising the terms of the agreement in order to change them so that the borrower has the opportunity to properly fulfill its obligations.

Restructuring is applied only if there are sufficient grounds indicating a pre-default state of the debtor or a temporary inability to fulfill loan obligations. Thus, the procedure cannot be initiated simply because the borrower does not like or find the existing loan terms very onerous. In addition, restructuring does not aim to create the most favorable conditions for the borrower. The bank will never lose its benefits, and the maximum that a borrower can count on is reaching an agreement on mutually beneficial terms for repaying the debt.

Revision of the terms of debt obligations is a common practice in financial and economic relations, including in the bank lending system. Almost all banks have specially developed regulations and schemes for restructuring loans of individual borrowers. However, the use of restructuring is not mandatory for banks, so whether to go for it or not, what conditions to offer, whether to apply it to a particular product or not - all these are matters of the exclusive competence of a particular bank. Even if for some loans, as today, in particular for foreign currency mortgages, the Central Bank recommends the use of certain restructuring schemes, this does not impose strict obligations on the banking sector. The only exceptions can be the provisions of the law, but the state is not always ready to intervene in the banking environment and only in relation to problems of a mass nature.

For the possibility of restructuring, the key condition is that the borrower has financial problems that do not allow him to repay his debt in a timely and (or) full amount in accordance with the procedure established by the loan agreement.

The bank may not always know about the occurrence of such problems if the borrower, although with difficulty, repays the loan on time. From the borrower's perspective, the possibility of debt restructuring should be considered first. It does not matter whether restructuring is provided for your loan product or not. The bank has the right to make concessions and revise the terms of the loan at the request of the borrower, even if such a possibility was not initially included in the provisions of the agreement. It is easier for the debtor to assess his real financial situation than for the bank, and if there are signs that the borrower will no longer be able to fulfill his obligations, he must independently take measures to initiate restructuring. This will avoid delays and accumulation of debt in excess of the principal debt on the loan.

When approaching a bank with an initiative for restructuring, it is best to use and, of course, document the following grounds:

Job loss and long-term inability to find work. In this case, just words are not enough, so it is highly advisable to submit written refusals from employers to hire. At the same time, in some situations, especially if we are talking about a regular client of a particular bank, a credit institution may make concessions when confirming only the loss of a job, but, as a rule, solely on non-defamatory grounds (not because of disciplinary offenses). The same can be said about the situation of a significant decrease in the borrower’s income, for example, due to a reduction in wages.
Loss of ability to work, long-term illness. These are compelling factors that require expert medical documentation to support.
Loss of a breadwinner or maternity leave. These circumstances also serve as compelling reasons for the bank to consider the issue of debt restructuring, but a positive decision is only possible if the borrower has no other sources of income or their insufficiency to repay the debt.
Death of the borrower. This basis is applicable only to his heirs to whom the obligation has passed. Banks often make concessions if convincing evidence is presented that the burden on the heirs is excessive. But it should be remembered that a refusal to restructure can always be accompanied by a very weighty argument - that the heirs have the opportunity to repay the debt at the expense of the inherited property.

There is no point in deceiving the bank, since, as when receiving a loan, a thorough check of both the arguments and the submitted documents will be carried out. In addition, the bank always has the right to refuse restructuring, including without specifying or justifying the reasons for such a decision.

Important factors in obtaining consent for restructuring are:

the persuasiveness of the arguments and their documentary evidence;
the bank has sufficient grounds to believe that the restructuring will really help the borrower cope with temporary financial difficulties;
good or at least satisfactory credit history.

Initially, the borrower is only required to write to the bank with an application for debt restructuring. The application should be accompanied by available documents confirming financial difficulties and grounds for talking about possible restructuring. Nothing prevents you from indicating in your application your proposals for debt restructuring, but it is important to justify them competently, including from the standpoint of not only your own benefit, but also the banking one.

Most likely, upon receiving initial approval, the borrower will be invited to talk with the bank manager. As part of the negotiations, you will have to voice your financial problems and once again prove the validity of your claims for restructuring. If the bank is satisfied with your arguments, the manager will either immediately offer specific options for revising the terms of the loan, or set another time to consider this issue, including asking for additional documents.

The standard list of documents for restructuring includes:

borrower's application;
documents confirming financial problems and grounds for satisfying the restructuring application;
passport;
a copy of the loan agreement, documents on payments and reconciliations (not all banks require);
documents requested by the bank (the list is determined by banks individually).

Favorable conditions for restructuring

There are several widespread schemes (or programs) for restructuring credit debt. It is important for borrowers to know them, as well as to understand their contents and consequences:

Contract extension- increasing the loan term. One of the most popular options, which involves reducing the monthly financial burden on the debtor by increasing the loan repayment period. The consequences for the borrower are a decrease in the monthly debt burden, but an increase in the total amount of debt obligations, in other words, an increase in the amount of overpayment on the loan. The most favorable conditions for the borrower are achieved when not only the loan term is revised, but also the debt repayment scheme. For example, it is not always profitable for some to pay off debt with differentiated payments, and for others - with annuity payments. However, this issue requires individual study, and the revision of the payment scheme itself is often used as an independent debt restructuring program.
Credit holidays- temporary suspension of payments on the principal debt while maintaining only interest payments. The option for the borrower is beneficial in which, after the suspension of payments expires, the remaining debt will be evenly distributed over time. An option in which the principal debt must be repaid in a lump sum or within a very limited time frame may be considered unfavorable. All schemes associated with upward revision of loan rates can be considered similar.
Revision of liability currency. This option is relevant in modern times, but it may also be due to the fact that the borrower has changed jobs and now receives income in a currency other than the one in which the loan was received. Currency repricing is rarely used. It is beneficial to the borrower only if the currency in which the income is received has changed, and he thereby gets rid of the currency risk, or in situations where the loan is recalculated not at the current exchange rate, but at a more favorable one for the borrower.
Interest rate reduction. This option is used for isolated cases, but is certainly the most profitable scheme for the borrower. To compensate for their lost profits, banks often accompany the interest rate reduction by prolonging the contract.

Sometimes a restructuring program is prepared on an individual basis, so it can combine different schemes. The active position of the borrower and his ability to offer informed solutions help to achieve the most favorable conditions, and those that will, on the one hand, be beneficial for the borrower, and on the other, beneficial for the bank.

When considering the prospect of restructuring, it may be worth paying attention to refinancing programs. They may be offered either by the lending bank or by a third-party bank. At the same time, it is quite possible to find much more attractive conditions than exist for the loan that needs to be repaid. But it is important to take into account that the greater the delay or the volume of accumulated outstanding debt, the lower the chances of getting a new loan to pay off the old one.

It often happens that a person takes out a loan, and then, due to circumstances beyond his control, is unable to make payments on it. In this case, it is possible to contact the bank with a request to restructure the loan.

In this article we will look at one of the most popular ways to resolve the problem with loan payments (if these payments have become “unaffordable”) and you will learn the following:

what is loan restructuring;
what grounds may there be for restructuring the loan debt;
why banks sometimes offer loan restructuring themselves and who benefits from this;
what are the basis conditions for a positive decision on loan restructuring;
standard procedure for loan restructuring;
what types of loan debt restructuring are there;
who can you turn to for help in restructuring a loan;
TOP banks for restructuring (refinancing) loans in 2017.

First, let's find out in what cases restructuring can be useful, and then briefly what loan restructuring is.

Loan restructuring may be necessary, for example, in the event of loss of business, dismissal from work or demotion, serious illness followed by expensive treatment, or a sharp increase in the exchange rate (if the loan is in foreign currency) and many other reasons that lead to a decrease in the borrower's income.

The most reasonable way to get out of a situation of insolvency on a loan is to restructure the loan debt, if there are objective reasons for this, which are accepted by banks as a basis for restructuring the loan. So what is loan restructuring and why is it needed?

So, loan restructuring is a change in the conditions of a service already provided in the direction of easing the existing debt burden on the borrower. In order for the bank to restructure the loan, the borrower needs to contact his loan officer with written statement (or by filling out the appropriate form from the bank where you took out the loan), which will indicate the reasons that are the basis for revising the terms of the loan agreement.

Having accepted your application, the bank will consider the reason you indicated for restructuring, study your history of loan payments and make its decision on the possibility of loan restructuring.

If the bank cooperates, it can restructure the loan in one of the following ways: credit holidays, loan extension, writing off penalties, changing the lending currency, reducing the interest rate, reducing the monthly payment and a combined option.

You should know that you can count on a positive decision from the bank on loan restructuring only if you have been regularly making payments on the loan before submitting the application for loan restructuring.

What to do if you can't pay your loan? And what grounds could there be for restructuring the loan debt?

If you are no longer able to make loan payments, then it is better for you not to delay and contact the bank with a request to restructure the loan. Many borrowers leave everything to chance and expect that the problem will be solved by itself, thereby making a big mistake. Alas, the problem will not be solved by itself; you need to contact your loan officer with an explanation of the current situation orally and in writing state the reasons for your insolvency, which may be grounds for the bank to restructure the loan.

The grounds for loan restructuring may be the following:

loss of the borrower's source of income (loss of business, dismissal from a job, demotion, retirement, non-payment of wages);
illness, accident leading to injury that caused loss of ability to work;
a sharp increase in the exchange rate of the currency in which the loan was taken or a fall in the exchange rate of the ruble;
change by the company in which the borrower works in terms of salary payments;
the birth of a child followed by maternity leave;
change marital status affecting the borrower’s level of expenses;
natural disasters: fire, flood, drought (if the borrower is a farmer) etc.

The decision to restructure a loan is made on an individual basis and banks usually require documentary evidence insolvency of the borrower, but sometimes they carry out restructuring for commercial purposes.

Loan restructuring affects the borrower's credit history, but this measure is not perceived by banks as a completely negative factor that may negatively affect the positive decision of banks in issuing future loans.

If the bank considers the reasons you mentioned to be insufficient grounds for restructuring the loan, then as an option you can secure the restructuring with collateral - real estate, a car, a land plot, securities or other valuable property at the discretion of the bank. Banks are more willing to undertake restructuring secured by collateral.

Why do banks sometimes offer loan restructuring themselves and who benefits from this, you or the bank?

Before we find out why banks sometimes offer loan restructuring themselves, let’s find out who benefits from it, borrowers or banks? In most cases, loan restructuring is beneficial to both the bank and the borrower. The bank because it has fewer overdue loans, and banks are required to have a mandatory reserve for overdue and impaired loans (a little more detail below). And the borrower benefits because he receives a kind of relief and time to improve his finances.

Borrowers who have realized that the financial burden in the form of loan payments has become unbearable are strongly recommended, without waiting for trouble, to contact the bank with a request for loan restructuring (banks are loyal to proactive clients and often meet them).

Why do banks benefit from loan restructuring?

It is extremely beneficial for banks to have as few actual defaulters on their register as possible. This benefit is very easy to explain, according to the requirements of the Central Bank of Russia (supervisory authority for financial institutions), all banks are required to have a reserve for overdue and impaired loans.

But for banks this is very unprofitable, due to the fact that they must create this reserve from net profit (i.e. for the bank this is “dead” money that it cannot put into business) and it amounts to a significant amount for the bank. From here we can draw a simple conclusion: the fewer defaulters a bank has, the less it spends on reserves and the money does not lie “dead weight”, but works and, accordingly, brings profit to the bank.

It is for this reason that it is more profitable for banks to restructure a loan than to record its arrears.

Therefore, if you have problems with loan payments, do not hesitate and during contact the bank for loan restructuring, because... In order to minimize its losses, the bank can most likely accommodate you.

Basic conditions for a positive decision on loan restructuring: bank requirements and registration procedure

The main conditions for a bank to positively consider a request for loan restructuring are:

Your conscientious fulfillment of your obligations regarding past payments.
You must have a respectful reason, which did not affect your solvency (we mentioned the list of reasons above).

To restructure your loan, you need to contact your bank loan officer with a corresponding application (or you will be asked to fill out a form), indicating the reason and type of restructuring which you consider most suitable for yourself.

In addition to the application, you need to submit the following documents:

standard package of documents required by the bank to issue a loan: copy of passport, copy of work book, 2-NDFL certificate;
documents that confirm the deterioration of your financial situation, if this cannot be seen in the standard package of documents. Such documents may be: a copy of the employment contract, a certificate from the employment center, registration with the employment service, a certificate from the hospital.
For a mortgage loan, in addition to the above documents, you will also need a copy of the mortgage and documents on additional income, if any.

The bank considers the application exclusively on an individual basis, so it can offer its own conditions (types) of loan restructuring, and not those that you indicated in the application.

Loan restructuring procedure

For information, any types of loans are subject to restructuring: consumer, target, mortgage, car loans.

Let's look at the standard procedure for revising the terms of the contract for loan restructuring.

Standard procedure for loan restructuring:

You fill out the form (or write a statement) according to the form established by the bank. In it, in the appropriate columns, you indicate the reasons for insolvency and deterioration of your financial situation, information about your property, income and expenses, and marital status.
In some banks you can indicate your preferred loan restructuring option, and in some you will be offered one restructuring option or a choice, after reviewing the questionnaire (application).
The questionnaire (application) is sent to the debtor relations department.
A representative of the department communicates with you, and together you draw up a plan for further action.
Then you collect required package documents that contain loan data, and other documents that are listed in the previous paragraph.
The bank makes a decision on revising the terms of the loan agreement within the established time frame.
If a positive decision is made, you sign a new loan document.

In some banks you need to fill out a form, and in others you need to write an application requesting loan restructuring. In fact, an application is an analogue of a questionnaire, but in a freer form - without strict columns and sections. The application must indicate the preferred restructuring option and the reasons for insolvency, which you must then document.

7 types of loan restructuring

There are several types of loan restructuring. Sometimes the borrower is given the opportunity to choose the restructuring option independently, but most often it is determined jointly with the lender.

Let's look at the most popular types of loan restructuring used in most Russian banks.

Credit holidays

If the borrower has financial difficulties, the bank can provide him with a credit holiday, agreeing with the client on the period during which he will pay only interest, without payments on the body of the loan. Credit holidays are usually provided for a period of 3 to 24 months.

The bank can also provide the borrower with the most profitable option, in which he will be allowed not to make payments for 3-6 months, both on interest and on the loan principal. This opportunity is provided so that during this time the borrower can solve his temporary financial difficulties: get a job, find additional source income or find some other way.

During the period of credit holidays, the debt burden on the borrower decreases, but the total amount of overpayment on the loan increases.

Loan extension

Loan extension is an increase in the term of the loan agreement, due to which the amount of the monthly scheduled payment is reduced, but the amount of overpayment on the loan increases.

Example

The amount of the borrower's debt was initially 200,000 rubles, the term for which the loan was taken out was 24 months with an interest rate of 30% per annum. In this case, he would need to pay 11,182.56 rubles monthly, and the amount of the overpayment would be 68,381.54 rubles.

Let’s assume that after 6 months the borrower has financial difficulties and applies to the bank to extend the loan for 12 months. In this case, his monthly payment would be reduced from 11,182.56 rubles. to 7,668.65 rubles, but the total amount of overpayment would increase from 68,381.54 rubles. up to 92,600 rubles (more than 24,000 rubles). You can make personal calculations using the loan calculator on our website in the right sitebar.

Reduced monthly payment

A reduction in the monthly loan payment is applied if the borrower has temporary financial difficulties and there is a high probability that they will be resolved after some time. The disadvantage of this loan restructuring option is that at the end of the period for reducing the monthly payment, the amount of monthly payments increases, because the borrower will need to catch up with the repayment schedule, the amount of overpayment increases accordingly, because the decline in the principal balance was slow.

However, this is still better than getting a reputation as a persistent defaulter and developing a bad credit history, followed by paying numerous fines and penalties, and in the worst case, ending up in court.

Lower interest rate

The loan rate can be reduced only if the borrower has an impeccable credit history. When the interest rate decreases, the amount of overpayment most often remains the same or increases slightly.

Changing the lending currency

Currently, economic crisis and the devaluation of the ruble made life difficult for borrowers; it became difficult for them to repay loans, and for some it was simply impossible. And banks can sometimes agree to change the loan currency, sometimes because changing the lending currency is beneficial to the client, but not to the bank. Therefore, this type of loan restructuring is extremely rarely used by banks.

Write-off of penalties

Some banks may give the borrower a deferment on the payment of fines, penalties, or completely write off debts on them. But again, this type of restructuring is used extremely rarely - for example, when a borrower is declared bankrupt by a court or in cases of documented extremely difficult life circumstances.

Combined option

A mixture of several types of restructuring - for example, prolongation is combined with the write-off of fines or a change in the currency of the loan. It is practiced, again, in special cases and not in all financial companies.

Assistance from third-party banks in loan restructuring. How to choose the right bank?

Loan restructuring (refinancing) is often used by payers as a way to repay an existing loan by taking out a new one.

A borrower who has taken out a loan on unfavorable terms can contact the same or another bank with an offer to take out another loan and get rid of the existing debt.

When choosing a bank for restructuring, experts advise paying attention to the following points:

the financial institution's policy regarding refinancing;
the amount of commission for a new loan;
conditions for obtaining a re-loan;
reputation of the financial institution.

Banks you can contact to refinance your loan from other banks

Some banks are particularly active in refinancing issues.

Such companies include in particular: VTB Bank of Moscow, Renaissance Credit, Tinkoff, Sovcombank, Raiffeisen Bank, Ural Bank and some others.

The list contains lists of banks with the best programs for loan restructuring., find themselves in no less enslaving conditions.

Some banks may refuse restructuring altogether, citing the debtor’s bad credit history or other subjective factors.

The best option in such circumstances is to contact professional law firms engaged in helping citizens provide loans on favorable terms.

For example, in Moscow the following companies deal with similar issues:

1. "Kommersant Credit"– an institution, all of whose employees have experience working in bank security services – A team of professionals in the brokerage market of banking services.

2. "Credit Laboratory"– effective and prompt resolution of any credit issues. The company's many years of experience allows us to prepare the client for the specific requests of credit institutions.

3. “Credit Decision Service”– a company dealing with lending issues since 2010. Provides assistance to physical and legal entities in obtaining any types of loans, having well-established contacts with banks.

The services of the listed and other credit brokers, of course, are paid, but in the end such companies will help save debtors much more. Remember that reducing interest rates even by tenths of a percent means saving tens of thousands of rubles from your pocket.