The ability to restructure your debt to creditors has several positive aspects:
There is no need to collect all the documents again and submit them to the bank, since it already has all the necessary information about the borrower.
Changing the terms of the loan helps to avoid late payments, fines, litigation, seizure of accounts, foreclosure of collateral and other unpleasant consequences.
Restructuring can be arranged even if there are already overdue payments on the loan. Banks themselves often offer it to clients for whom the debt burden has turned out to be too heavy.
But there are also some difficulties associated with this financial procedure:
You can only restructure a loan in the bank where it was exit mobile number database opened. You also cannot choose new credit terms: they are determined by the lender.
The borrower is required to document the difficult financial situation: provide income certificates, medical documents in case of illness, a child's birth certificate, etc.
Information about the restructuring is also entered into the borrower's credit file and may make it difficult to obtain a new loan in the future, even if the restructured loan was repaid in full and without delays.
Design rules
To apply for loan refinancing, you must submit a corresponding application to the bank. If you decide to change the lender, you must attach a package of relevant documents to it: the exact list of them can be found on the credit institution's website, and there you can fill out an application in electronic form.
To formalize the restructuring, you do not need to collect all the documents. You will also need to submit an application in which you should justify and confirm the reason for the need to change the terms of the loan.