The bank grants a loan. All available ways to get a deferred loan payment. You can get a grace period for loan repayment

When applying for a bank loan, we all expect that the salary will increase over time, which will make it easier to pay off the debt. However, there are times when a person is demoted or fired. Or he gets injured and because of this, he cannot work for several months.

The inability to earn money does not mean that you do not need to pay a loan. In the absence of payments, the bank will begin to charge penalties, and the debt will increase significantly.

Therefore, in such a situation, it is necessary not to be silent, but at the first opportunity to go to the bank, report changes in financial condition and ask for a loan deferral. Credit organizations are interested in the fact that the debt is returned, and in such cases they usually meet halfway by providing a deferral for consumer credit.

If you doubt whether it is possible to get a deferred payment on a loan, then you should not. You can do this at any time and in any bank. In any case, you have the right to write a corresponding application, but the bank has the same right to refuse.

Therefore, when collecting the documents necessary for deferring a loan, be prepared for the fact that you will get a negative result.

What documents are needed to get a deferment?

Just going to the bank and asking if it is possible to get a deferment is not enough. In response to this question, you will be told that the decision is made individually for each borrower, so you need to collect a package of documents and submit it for consideration.

After a certain time, the bank will inform you what decision has been made.

By law, any appeal of an individual to any organization must be considered within 30 days. If necessary, the period can be increased, but not more than twice.

So don't be surprised if you are told that it will take several weeks to process your documents. This is fine.

So, check out the list of documents required in order to get a deferred loan from a bank.

1. The passport. Without a document confirming that you are you, there is nothing to do in the bank.
2. Loan agreement. Since you are asking to change the terms of the loan specified in the agreement, the employees dealing with your issue should see the agreement on the basis of which you are cooperating with the bank.
3. Payment schedule. It must be up-to-date on the date of application to the bank. If you have made an early repayment or have already asked for a deferred payment, you need to provide the schedule that you were given after all these procedures. If you provide a document that you received when issuing a loan, you will simply lose time: upon review, it turns out that the schedule has already been changed, and you will be refused due to an incomplete package of documents.
4. Documents illustrating the need to grant a deferment. This includes a variety of references. The main thing is that it should be clear from them that earlier you could afford a monthly payment, but now the situation has changed.

   We will talk in more detail about what documents these can be later, when we talk about who can apply for a change in the terms of the contract.

5. Application for a deferral. Formally, you can write it in free form, this is not regulated by law. However, each bank has a form specifically for such cases. You can try to find it on the site to come with a ready-made package of documents, or you can ask an employee who will work with you to print it.

You provide all documents in the original, if a bank employee needs a copy, he will make it.

Remember that certificates have an expiration date, and do not delay contacting the bank.

Reasons for getting a deferred payment

We have already said that anyone can get a deferred loan payment. Of course, there must be serious reasons for changing the terms of the loan agreement. Therefore, if the client asks to be released from paying the debt for several months simply because he wants to, the bank will surely refuse.

It is important to remember that delay is not a right, but a privilege. Anyone can ask for it, but not every bank will give this delay.

Below we will talk about the cases in which a deferral will be granted.

job loss

If you suddenly lost your job during the loan repayment and, therefore, were left without income, this is a reason to contact the bank to find out if you can get a loan deferral. Most likely you will be answered positively and asked to collect documents.

Confirmation of the absence of work will be a work book, where the last entry is “Fired”, and an order to reduce staff or liquidate the enterprise.

If you are laid off, in no case do not agree to write a statement of your own free will.

If you were laid off, then you are not to blame for the loss of your job. If you succumb to the employer's persuasion, then formally it turns out that you yourself wanted to leave your job.

Serious illness

If you or your family members have been diagnosed with a serious diagnosis and require immediate treatment, then you will probably not have time to pay off the loan: all the money will go to medicines, operations, rehabilitation and other expenses related to treatment.

In this case, you will need to bring documents from the hospital to the bank confirming that you have a disease and the fact that it was not at the time of the loan. You will also need documents containing numbers. That is, agreements with hospitals, where it is written that you pay a fairly large amount for treatment.

Seeing that most of your budget goes to medical expenses, the bank may grant a deferment for several months.

Birth of a child

When a child is born in a family, the costs are bound to increase. Therefore, in connection with the birth of a child, you can also try to get a delay. And the package of documents in this case is the simplest - just a birth certificate.

Loan payment deferral options

Depending on the bank and your situation, they may offer several options for deferrals.

1. Reducing the interest rate. This is done not for the entire duration of the loan agreement, but for a certain period. For example, for six months. This means that within 6 months you will make the same payment on the principal debt, but interest will be charged at this time at a reduced interest rate. Due to this, the total payment on the loan will be lower, and you will be able to avoid overdue debt.
2. Interest deferral. This means that during the period specified in the supplementary agreement to the loan agreement, you will only pay the principal debt. And the interest that you had to pay at this time will be evenly distributed between subsequent payments. Therefore, future payments will increase. How much depends on the length of the grace period and the remaining repayment period of the loan.

   Since the bank receives most of the interest in the first half of payments, it is worth choosing this deferral option at this time.

3. Postponement of principal payments. Reverse situation. During the grace period, the client pays only interest, and the main debt is distributed over the following months.

   If you have recently started paying off a loan, such a delay will not be useful: most of the payment is spent on interest, therefore, the credit burden will hardly decrease. But if you have already paid half the term, it makes sense to choose this option.

4. Extension of the term of the loan agreement. This is not a pure deferral, as you will be paying every month as you should. However, by increasing the term of the loan, the monthly payment can be significantly reduced. When your financial situation improves, you can close the loan ahead of schedule. If financial problems persist, it will be easier for you to make a small payment.

Perhaps your bank provides some other options for solving borrowers' problems, but the ones listed are the most common.

The procedure for granting a deferment on loans

The deferment process consists of several steps.

1. Contact the bank with a package of documents and apply for a deferment. For your own peace of mind, you can ask for a copy of your application with a mark of acceptance.
2. Wait for your documents to be reviewed by the bank. It is worth knowing in advance how you will be informed about this and at what time.
3. Sign documents prepared by bank employees. This will be an additional agreement to the loan agreement, which will specify the conditions under which you receive a deferral and a new payment schedule.

This completes the withdrawal process. Having received the documents in your hands, be sure to check in the schedule when the payment changes. Most likely this will happen on the next payment date.

When drawing up a loan agreement, the borrower naturally assumes proper repayment of the debt, and even early payment. But circumstances in life do not always work out in the best way, and no one is immune from financial difficulties. In a situation where it becomes problematic to make a payment on a loan on time, the borrower has a question of obtaining a deferral of payment. We will discuss how to do this, what options banks offer to their clients in case of temporary financial difficulties.

What is a loan deferral?

The loan agreement documents the conditions, terms, payment procedure and possible changes in the event of force majeure. Financial difficulties cause problems with loan repayment. The insolvency of the borrower is short-term or stretches for months. The financial institution that issued the loan will incur temporary and financial losses during the judicial recovery of the debt. Therefore, reaching a compromise solution to defer loan payments is beneficial to both parties.

Banks that are ready to make concessions to regular customers enjoy great confidence. A borrower who has received some preferences from a lender is likely to contact the same company again in the future or use additional services.

The conditions for granting deferrals by the bank are set individually. The possibility of obtaining it and the options are prescribed in the loan agreement. If there is no clause on the temporary suspension of payment of the debt in the document, a request is made to the creditor. The bank allows for a certain time not to pay the principal debt, to increase the payment period, to reduce the amount of the regular contribution.

Options for revising payment terms

There are no template rules for granting deferred monthly loan payments. Each case of revision of the terms of the transaction is considered by the financial institution individually. The decision of the creditor is influenced by such factors as the current financial situation of the client, credit history, duration of adverse circumstances.

When a borrower applies for a deferment, banks offer the following repayment options:

• credit holidays with full or partial exemption from regular payments;
• debt restructuring;
• revision of the payment schedule;
• refinancing (re-crediting) of a loan.

During a credit holiday to defer the payment of the principal debt, the client pays only the accrued interest. The amount of outstanding debt is not reduced. As a result, the amount of the borrower's overpayment is the amount of interest paid during the grace period. Banks can completely freeze payments for some time only to regular and reliable customers, and only as a last resort. This is the best option for the borrower.

Debt restructuring provides for a revision of the contractual terms - the monthly payment amount to be paid, the payment period, and interest accrued for the use of funds. In this way, the client can get a significant reduction in the regular financial burden, but the final overpayment under the contract will increase significantly. Adjustment of the payment schedule is possible in the form of a decrease in payment in some months, subject to an increase in others, a one-time payment of debts once a quarter.

Refinancing means refinancing in another bank. That is, to close the debt on the old loan, a new one is issued on favorable terms for the borrower. With long-term financial problems and declaring bankruptcy, debts can not be paid. In practice, the court often refuses to declare the borrower bankrupt and obliges him to pay the debt. This is not a very effective solution to the problem, because legal costs will be added to the loan amount with interest.

Who can get a deferred loan payment?

The right to postpone loan repayments can only be borrowers with a good credit history, that is, those who have previously observed all contractual conditions. When considering an application for loyal repayment terms, the bank takes into account the following factors:

• no evidence of fraud on the part of the borrower;
• timely payments in the past;
• temporary nature of material problems.

The slightest non-compliance with these requirements or suspicion of this fact reduces the likelihood of obtaining a positive decision of the creditor. The following types of debtors have the right to receive a deferral of loan repayment:

• lost their earnings for a while;
• women on maternity leave until the child is one and a half years old;
• temporary disability for health reasons;
• experiencing financial difficulties for reasons beyond their control - victims of natural disasters, fire, emergencies;
• changing place of residence;
• deprived of a breadwinner;
• dependents of persons in need of emergency treatment.

To confirm a difficult life situation, the borrower must present to the lender a document confirming the reason for insolvency:

• a copy of the work book;
• medical certificate;
• proof of disability;
• certificate of income reduction.

This is necessary to rule out fraud. The Bank grants the necessary deferment only if the guarantee of a solvent person is provided.

Debtors who:

• allowed delays;
• took out a loan less than three months ago;
• lost their jobs voluntarily;
• arouse the lender's suspicions of fraud.

Registration procedure

The procedure for agreeing on a deferral of loan repayment is often described in the agreement, or agreed by the committee based on the results of consideration of the borrower's written request. If the conditions for changing the loan payment parameters are provided for at the conclusion of the transaction, the bank, when making a decision, is guided by these norms.

Sometimes the lender provides an additional fee for changing the conditions. The contractual conditions determine the list of documents provided by the client, the allowable period for restructuring.

If the agreement does not provide for changes in the loan repayment procedure, this issue is resolved individually at a meeting of the credit committee. Financial institutions offer approved standard deferral schemes when a borrower applies.

It takes up to 30 days to consider the debtor's application. The bank may refuse without giving reasons. If a positive decision is made, the parties sign an addendum to the current contract.

It is advisable to contact the bank before the appearance of overdue payments with an application and a basic package of documents:

• the passport;
• income statement;
• a copy of the work book;
• certificate from the employment center in case of job loss;
• medical certificate of disability due to poor health.

Bank conditions

Sberbank offers borrowers in a difficult financial situation debt restructuring, which reduces the financial burden of monthly payments and increases the loan term. One of the schemes is to defer payment of the principal amount of the loan.

In the Bank of Moscow, such a delay in the payment of interest will be for a period of 1 - 12 months with an extension for the vacation period of the loan agreement. Promsvyazbank gives a deferment for 2 payments planned by the schedule, subject to payment of interest. In Trust Bank, the service of changing the terms of a loan is paid.

Pros and cons of the procedure

Significant advantages of changing the terms of payment of a loan with a delay include a decrease in the financial burden on the family budget, which gives a chance to stabilize the financial situation and repay the loan in full. From not the most pleasant moments for the borrower - an increase in the total overpayment, the payment period.

Changing the original terms of the loan is likely to be unprofitable for the client. However, this is a more advantageous option than the adverse consequences that follow the delay - problems with collectors, a damaged credit history, and even possible bankruptcy.

Turning to the bank, any borrower assumes that in the event of a loan, he will take responsibility for the return of funds by making monthly installments. This lending mechanism is classic, and many citizens are familiar with it from personal experience.

It happens that due to circumstances, a citizen loses the ability to make monthly payments. To avoid delays and possible unpleasant consequences, you should contact the lender and take the opportunity to take a deferment on the payment of a consumer loan. In our article, we will talk about what is required for this and how to issue the accompanying documentation.

In order not to complicate the situation with the return of the loan, and also not to become an object of influence of collectors or bailiffs, you should not exacerbate the problem. It will be enough to contact the borrower and ask to postpone the loan payment to a later date. If the application is approved, the borrower gets the opportunity to take advantage of credit holidays, and in the future to pay the debt.

This provision is enshrined in Art. 450-451 of the Civil Code of the Russian Federation. According to the content of these articles, any citizen who has taken a loan has the right to ask for a delay at least once a year.

What deferred payment options are available?

Deferral of payment on a loan is the provision by the lender of a certain period of time to the borrower, during which a citizen may not pay some part of the debt or not pay the entire loan in full. As a rule, we are talking about the following options:

1. The principal payment due date is being postponed. In this case, the basic part of the debt, namely the body of the loan, remains unpaid, and the debtor is obliged to pay only the accumulated interest. It is important that the grace period should be only one year.
2. Granting a deferral of payment of interest on a loan. The borrower makes payments only on the principal loan, while for those who want to reduce the overall overpayment on the loan, this may be the most suitable method.
3. Deferrals for each part of the payment can only be granted to very reliable clients and for a short period of time, for example, three months.
4. Implementation of the revision of the terms of the loan. In this case, the borrower should present a convenient loan restructuring plan to the bank and then wait for a decision. The client must convince the bank that his offer is very profitable and will solve problems related to the violation of the financial stability of the borrower and the payment of mandatory funds.
5. Revision of payment schedule. In this case, for a certain period of time, monthly payments are stopped, provided that in the future funds will be deposited in the required amount.

Once the grace period has expired, the borrower should be required to resume payments. Despite the complexity of the situation, the chosen option of transferring funds may allow the citizen to improve his financial situation and resume payments. Most often, the debt is recalculated, and the citizen has to pay the bank much more than before, so experts in this topic recommend not resorting to deferrals unless absolutely necessary.

How to get a deferment

If the client wants to get some time as a loan deferral, then you should first contact the bank and take the appropriate application form.

There is no single regulation for issuing a deferment, however, there is a certain scheme of actions that will allow the payment to be transferred to subsequent periods:

1. First you need to read the loan agreement. The document should indicate under what conditions a deferral is granted, as well as what is the maximum period for transferring payment can be provided to citizens.
2. In some banks, it is customary to involve a whole committee in considering the issue of granting a deferment. As a rule, this is decided on an individual basis based on the documents provided by the borrower.
3. Some lenders, when applying to a client, give him the right to independently choose a suitable restructuring scheme. As options, you can consider such as lowering the interest rate or reallocating the amount for a refund.

Restructuring is usually provided to people who have submitted additional certificates and statements confirming their positive credit reputation, as well as having the status of a reliable borrower. Sometimes the bank gives people the opportunity to exercise such a right as a loan vacation, which was not initially provided for in the agreement.

Who can be granted a deferment?

Only certain categories of citizens can take advantage of such a right as a deferred payment. The list includes the following individuals:

• persons suffering from a serious illness and having an official medical opinion;
• citizens who have lost their earnings, including single mothers and women on maternity leave;
• borrowers who have moved to a permanent place of residence in another locality;
• citizens who have lost their breadwinner or are involved in paying for the treatment of relatives;
• persons who have experienced force majeure circumstances.

Of course, you will have to confirm your status with certain documentation and the provision of additional extracts or medical reports. The main condition is the absence of delays on the loan. In addition, the whole procedure can take a lot of time.

Conclusion

When answering the question of whether it is possible to defer payment on a loan, it is worth paying attention to the conditions under which the bank will allow this to be done and whether the citizen has certain reasons to defer payment. In order to receive a deferment, it will be necessary to prepare a number of mandatory documentation and apply to the bank with an official application.

There are a lot of ways to get a deferred loan payment, and the list of them depends on the particular institution. Somewhere they are ready to offer the client a whole range of support measures at once, and somewhere they will refuse even a small deferral of loan payment due to serious life circumstances.

The essence of delay: what is it like?

Making a loan involves the need to subsequently repay the debt on a monthly basis in equal or differentiated payments. But no one is immune from the occurrence of circumstances due to which the fulfillment of obligations to the bank becomes impossible. At such moments, a person thinks about whether it is possible to defer payment on a loan.

Such a measure really exists in many banks, and some even offer this service to their borrowers for a fee. Others consider the client's application only after the application has been submitted.

In a general sense, a deferred payment on a loan is understood as the postponement of the repayment terms of the current debt. With all the unambiguity of the definition, there are several varieties of delay and in each case it may have its own duration.

Ways to defer current payment

The delay is perceived by borrowers as a way to at least temporarily reduce their financial burden. To obtain such a privilege from the bank, it is necessary to prove the seriousness of the situation. Just not wanting to pay or going on vacation will not be sufficient reasons. And if a person lost his job, became seriously ill, or a child was born in the family, the bank will try to find a way out of the situation together with the borrower.

Deferral of payment can be expressed in different forms. It is customary to distinguish the following varieties:

1. Interest Freeze. In this case, the client does not pay interest for a certain period, but deposits money to pay off the principal debt. This type of credit vacation is extremely rare, as it is unprofitable for banks.
2. Freezing principal debt. Here everything happens the other way around. For some time, the borrower is released from paying the principal debt, his obligations consist exclusively of accrued interest.
3. Full credit holidays. This format is a combination of the previous two. For banks, it is most unprofitable, but the client is the most suitable.
4. Changing the payment schedule. For example, instead of monthly payments, there may be assigned quarterly payments. This method is especially relevant for entrepreneurs working in areas with pronounced seasonality. For example, if profit falls mainly during the warm season, a businessman can be assigned most of the payments at this time.
5. Reducing the amount of debt by selling collateral. In this case, the proceeds will be credited by the bank as part of the debt. In this case, the client's obligations will be greatly reduced.
6. Debt restructuring. In most cases, it involves an increase in the term of the loan. As a result, the amount of the monthly payment becomes smaller, but the amount of the final overpayment increases.

The borrower, applying to the bank for a loan deferment, can indicate in the application the most suitable measure for him. True, this does not mean that it will be offered by a financial institution.

The bank is not always ready to make concessions to borrowers. For example, if a person is often late in making monthly payments without explaining the reasons, a financial institution is unlikely to help him solve problems. Borrowers belonging to the following categories are most likely to receive a positive response:

• those who, through no fault of their own, have lost their wages or other sources of income;
• women who have recently given birth (for this category there is even a law that allows you to get a deferred payment on a loan for a period of 6 - 12 months);
• persons with serious illnesses and injuries that require long-term treatment;
• families in which the breadwinner has died;
• persons who are caring for a close relative whose health has deteriorated, or if large funds are needed for his treatment;
• those who, due to life circumstances, change their place of residence;
• people facing other problems (for example, theft, loss or damage to property).

If a person left work of his own free will and lost his main income for this reason, the bank will not approve the application for a deferment.

Moreover, any of these facts is documented. Often, the bank additionally asks for the involvement of guarantors in order to protect itself.

There is also a general list of requirements for customers who may qualify for a deferment:

1. no delinquency on the current loan;
2. positive credit history;
3. duration of loan repayment - not less than 3 months;
4. at least 3-6 months are left until the full repayment of the debt (the final parameter may differ in some banks);
5. no criminal record for fraud.

Failure to meet even one of the requirements may mean rejection. Before going to the bank, you should make sure that the idea is promising.

Design methods

After making sure that all requirements are met, the borrower wonders how to defer payment on the loan. There are 3 options available to clients of different financial institutions:

• In the event that the loan agreement prescribes the conditions under which the bank provides the client with a deferral if necessary, the bank's actions are conditioned by the clauses specified in the document. Often on paper it is determined in advance under what conditions and for how long the delay is provided to the client. There is also a list of required documents. Some banks provide a deferred payment service to their customers for money, and in this case, the list of securities is often much smaller.
• In the absence of deferment conditions in the contract, the bank considers the possibility of granting credit holidays on an individual basis, depending on the complexity of the situation in which the client has fallen. Moreover, a special credit committee is engaged in making decisions in such matters.
• Sometimes banks offer solutions to the problem immediately after receiving the application. The client himself chooses the most suitable option for himself. So, for example, Sberbank provides a deferment.

Therefore, a person who wants to receive a deferment must first carefully re-read the loan agreement. Available options and other features of the deferral procedure in a particular bank may be prescribed there.

Procedure

Sometimes clients decide not to pay the loan themselves. In this case, there is also a delay, only it is unauthorized and not agreed upon by the bank. Such situations are not beneficial for customers: they are charged not only additional interest, but also fines and penalties. In addition, there is a deterioration in credit history.

If this scenario does not suit the borrower, then he should draw up an application and submit it along with a package of supporting papers in advance. In its classic form, the process of obtaining a deferral is as follows:

1. a person has a situation due to which he cannot fulfill his obligations to the bank in whole or in part;
2. understanding the problem, a person carefully studies the loan agreement and other documents, the bank's website;
3. if the contract contains clauses regarding obtaining a deferment, then you need to act in accordance with them (if necessary, you will have to pay for the deferral, if the bank sets such a condition);
4. if there are no explanations in the contract, then the client contacts the bank branch and informs the loan officer about the situation;
5. a bank employee instructs the borrower on how he needs to act;
6. the borrower collects all the necessary supporting documents, comes with them to the bank and writes an application in two copies;
7. the second copy must be kept for yourself and asked the specialist to put a mark of acceptance with the date and signature;
8. after some time, the client is informed about the decision made, if the answer is positive, he again applies to the bank and receives a modified payment schedule and explanations from the loan officer.

It is very important during the execution of all papers to try to fulfill your obligations to the bank. You can try to borrow money from relatives or friends.

I didn't get a refund, what should I do?

Unfortunately, banks do not always treat their customers with understanding. Sometimes they refuse to grant a deferment, and the person does not know what to do next. The most important thing is to try to fulfill your obligations to the bank. If you cannot pay the full amount, you need to pay off the debt at least partially. So the bank will at least see that the person responsibly approaches the fulfillment of his obligations, just temporarily does not have enough money.

Some decide not to pay the loan at all or apply for one or more loans. This is wrong, because the financial situation and the burden in such cases only increase. The best solution would be to go to court. In the hands of the client will be a statement with a mark of acceptance and the bank's refusal to grant a deferment. When applying the fines, the interest will be frozen until a decision is made which is good for the borrower.

You can try to refinance a loan at another bank, receiving money at a lower interest rate or increasing the repayment period.

Sometimes a person, for some reason, cannot make the next loan payment due to life circumstances - for example, loss of a job or a serious illness. In this case, you should never shy away from communicating with the bank. If the reason for non-payment is valid, the bank will offer options for resolving the situation. One of them is deferred payment, or credit holidays.

However, it is not always possible to get credit holidays. Not every bank is ready to give a deferment, and it does not work for all customers. You will learn how credit holidays work, who can get them and how to apply for them in this article.

Conditions for obtaining a loan holiday

The deferred monthly payment that the bank provides when it is impossible to repay the debt is called credit canticles. Such a delay is usually granted for a period of up to 1-3 months, less often - up to six months. During this period, the repayment of the loan body and the accrual of interest are stopped. During the loan holidays, the borrower will be able to solve the problem that does not allow repaying the debt on time. Credit history does not deteriorate from this.

Credit holidays may apply only to the body of the loan, to interest or to the entire amount of the payment. It depends on the period for which they are provided, and the total amount of overpayments.

The main condition for granting a deferment for a consumer loan is the presence of a sufficiently serious reason that does not allow repaying the loan. These reasons usually include:

• Job loss due to reasons beyond the employee's control, such as layoffs or the closure of the employing company
• Maternity leave for pregnancy or childcare under the age of one and a half years
• The need for long-term treatment of severe illness
• Loss of a survivor
• Call for military service
• Loss of property or health due to an accident - fire, robbery, natural disaster or other

Another important condition is a sufficient level of borrower's reliability. The bank is more likely to approve a deferment if you have previously made all payments on time and have a good credit history. Active use of other bank services, such as credit cards, will be an advantage.

At the same time, the bank will most likely refuse to grant you a deferment if:

• You were dismissed voluntarily or due to disciplinary violations
• You allow large delays, including in other credit institutions, and have
• You were - it becomes more difficult to prove the fact of employment and dismissal
• Less than three months remain after the loan is issued or before its full repayment
• You are suspected of intentionally evading payments - such actions are considered fraud

A loan deferment without a good reason is not available in all banks and is usually paid.

How to apply for a loan deferral?

First of all, if problems arise, contact the bank as soon as possible - report your problem and find out if it is possible to take a deferment in such a situation. You need to do this before the due date of the mandatory payment, otherwise the bank may fix the delay. It is best to contact the bank in person, but you can also ask for a delay by phone.

Read the loan agreement below. It may set out the conditions and procedure for granting a deferment. If there are no such conditions, then check them with the support service. Most likely, your organization provides this service on a case-by-case basis or, more rarely, does not provide it at all.

Then prepare documents that will confirm the reason why the vacation is required. Depending on the situation, this may be a work book with a mark of dismissal, medical certificates, sick leave and others. You will also need a passport and a loan agreement with a payment schedule. The bank may also request other documents - for example, a plan for solving a problem with a loan.

If the reason for the impossibility of repaying the debt was the loss of work, then you will also need a certificate from the employment center - it will confirm your status as unemployed.

After you collect the package of documents, contact the bank and fill out an application for a loan holiday. You can check the application form with the organization. The bank will consider your application within a few days and study the situation that does not allow you to repay the loan. If the reason is serious enough, he will make a positive decision. In this case, you will conclude an additional agreement with the bank to the loan agreement and, if required, pay a commission.

After signing the agreement, you will receive a new payment schedule, drawn up in accordance with the deferment. Credit holidays will finally come into force.

Pros and cons of credit holidays

In a difficult situation, credit holidays will serve as a good solution if you cannot cope with the loan repayment. This service has several advantages:

• During the grace period, you will have enough time to resolve the situation and start paying off the debt again according to the previous schedule.
• Credit holidays do not harm the credit history, for the duration of their validity, the accrual of fines and penalties is terminated
• If the vacation is incomplete, then you can slightly reduce the overpayment by paying off part of the body of the loan or interest on it

However, the disadvantages of such a solution must also be taken into account:

• Banks impose fairly strict requirements on those who want to get a deferment
• You can usually get a loan holiday only once for one loan - such a restriction is necessary so that people do not take a deferment too often
• Sometimes during the holiday period, interest continues to accrue on the amount of debt - the amount that you will need to repay after the delay will increase

What other ways are there to ease the burden of credit?

Sometimes, instead of a credit holiday, the bank may offer other options for solving a problem with loans. Such methods usually involve changing the payment schedule or transferring debt repayment obligations to a third party. Consider the ways to reduce the credit burden, which are used most often.

Refinancing. It applies if you have taken out several loans in different banks. In this case, a new loan is issued, which is used to pay off debts on previous ones. Payments are reduced as you only need to pay to one bank. If the loan is issued on security, then the encumbrance is removed from the property - it can be sold or donated.

Benefits of refinancing:

• available for many types of loans - consumer, auto loans, mortgages and credit cards
• When refinancing, the interest rate decreases and the repayment period increases
• You can also receive an additional amount that can be spent for any purpose.

Cons of refinancing:

• The number, amount and types of loans for which you can apply for refinancing are limited
• It is usually not possible to refinance debts that are in arrears
• Some banks issue refinancing only for third-party loans
• If the refinancing is for a mortgage, then you will not be able to receive a property tax deduction.

Restructuring. It implies a complete revision of the loan repayment schedule. During the restructuring process, a new schedule is drawn up, in which the size of the regular payment will be reduced. Sometimes the bank may change the change of debt repayment from annuity to differentiated or reduce the interest rate.

Benefits of restructuring:

• It will be easier for you to pay off the debt if the amount of the mandatory payment decreases
• Restructuring does not worsen the borrower's credit history

Cons of restructuring:

• Restructuring will not help if you have lost your job or disability for a long time
• It is difficult to issue a restructuring in the presence of open delinquencies

Assignment agreement (assignment of debt). In this case, the obligation to repay the loan is transferred to a third party - the assignee. With him, the bank concludes a separate agreement, which specifies the terms of the new loan. The person to whom the obligations are transferred must meet the requirements of the bank.

Benefits of an assignment agreement

• You will have no obligations to the bank - they will all be transferred to the new borrower
• Both individuals and (less often) legal entities can act as an assignee

Disadvantages of an assignment agreement

• It is necessary to find a person who will agree to take over the debt and will meet the requirements
• If an assignment is made for a car loan or mortgage, then the right to the acquired property also passes to the assignee
• Banks very rarely offer such a solution to the problem due to the complexity of its design.

Repayment by collateral, guarantor or insurance. It is available only when applying for a loan secured or surety, as well as when applying for insurance of the borrower. If the loan is secured by collateral, then the mortgaged property is sold, and the proceeds will be used to pay off the debt. If a guarantee is issued, then the obligation to repay passes to the guarantor. If there is, then the insurance company will pay off the loan.

Benefits of this repayment:

• The loan amount, including interest on it, will be repaid in full or transferred to another person
• If insurance is issued, then not only you, but also your relatives can receive compensation (for example, after the death of the borrower)

Disadvantages of such repayment:

• When you make a pledge, your rights to use the pledged property are limited. Loss of valuable property (car or home) can be serious
• The guarantor may waive his obligations if he can confirm the reason for the refusal
• Getting insurance can be very expensive (you need to pay insurance premiums regularly). In addition, you will need to confirm the fact of the insured event.

Conclusion

Banks are interested in borrowers repaying loans without significant problems. In litigation with debtors, they will lose more than in granting a deferral or restructuring. Therefore, do not be afraid to apply for credit holidays if necessary - if you can confirm your reliability, you can easily get an installment plan.

Try to apply for credit holidays only if there are no other options for repaying the debt. If you try to get a vacation without a good reason, the bank will begin to trust you less. Don't forget about other ways to ease the load, such as restructuring and refinancing. Perhaps in your situation they will be more convenient than deferred payment.

So, if you have problems with paying off your debt, you can take advantage of a deferred payment for several months - credit holidays. For this you need:

• Check if deferrals are allowed by your loan agreement
• Make sure you have a valid reason (layout due to redundancy, maternity leave, or disability)
• Submit an application and documents confirming the reason to the bank
• Conclude an additional agreement to the loan agreement

Credit holidays will give you time to eliminate the problem that interferes with repayment, but you can get out of it only under certain conditions. In addition to them, there are other options for easing the debt burden - refinancing, restructuring and assignment of debt (cession).

Have you ever used credit holidays? You can tell us about your experience with applying for a loan by installments in the comments.

Did you find answers to all your questions in this article?

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