Service "loan holidays": rules for registration, application, documents and reviews

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Unfortunately, in recent years, an increasing number of people who are not able to reasonably assess their own financial capabilities become debtors of banking institutions. The worst thing that a person in such a situation can do is to aggravate an already difficult situation by accumulating debts. Those who do not have the opportunity to immediately repay the entire amount can contact the bank and write an application for a "credit holiday". In most cases, creditors make concessions to borrowers, because it is also unprofitable for them to collect debtors, charging fines and not receiving any payments.

What is a "credit holiday"?

This is a kind of deferred payment that allows a client of a banking institution who does not have money at the moment to temporarily take a break from an overwhelming financial burden. This period is provided forso that a person can solve all his problems related to a change of residence, treatment or search for a permanent source of income.

When is deferred payment available?

In the context of a progressive economic downturn, an increasing number of people who received high salaries a few years ago are left without work. Many of them have a mortgage or some other debt to the bank, which has become an unbearable burden. In order not to accumulate astronomical amounts on an unpaid loan, you can contact the bank and find out how to get a "credit holiday". In most cases, financial institutions go to meet people who find themselves in a difficult life situation. So, the possibility of deferment is prescribed in most mortgage agreements. In some cases, the borrower can even choose which of the currently existing schemes suits him more than the others - partial or full.

Having received a positive response, do not be naive to expect that the bank will forgive the debt. The fact of obtaining a deferment, as a rule, leads to a significant increase in the cost of the loan. Often, after the credit holidays have come to an end, the bank recalculates payments with an increase in their size. Such a service can be provided to borrowers who meet several requirements. First of all, the debtor applying for deferred payments should not have delays, and not only in this institution. The second condition for the borrower isthe presence of unrestructured debt, until the full repayment of which there are at least three mandatory payments.

In what cases can a bank refuse to grant a deferment?

The reason for refusing to apply for a "credit holiday" may be the delay in the mandatory monthly installment. Also, financial institutions have the right not to satisfy the request of a person who does not have financial difficulties, he alth problems and has not lost his job. The application for a "loan vacation" may also be refused if less than three months have passed since the date of receipt of the loan.

Algorithm for obtaining deferred payments

The "loan vacation" service can be provided after documentary evidence that the borrower is experiencing financial difficulties and is temporarily unable to pay his bills. But in exceptional cases, banks give deferred payments simply at the request of a person. However, this service is not provided free of charge. People who are wondering how to apply for a "credit holiday" should take certain actions.

The first thing to do is contact the bank and notify them of your problems. After that, it is necessary to present evidence proving the difficult financial situation of the applicant. As documentary evidence, a photocopy of the work book or a certificate from the hospital can be used. Bank employees are required to familiarize the applicant with the conditions forwhich "credit holidays" are provided. Before signing a new contract, you should make sure that it does not provide for an increase in the interest rate, the accrual of fines or interest for the duration of the deferral. Only after that you can proceed to writing an application for a "credit holiday" addressed to the manager of a banking institution. After considering the application, the person who received a positive response must come to the bank to sign the relevant papers and receive a new payment schedule.

"Credit holidays" in Sberbank: how to apply?

This financial institution provides a debt restructuring service with a reduction in the amount of the monthly installment. In order to exercise your right, you must contact the representatives of the bank with an appropriate application. Anyone who wishes to receive a "credit vacation" at Sberbank should provide documentary evidence of problems and difficulties. In some cases, the client may be offered an extension of the contract with an increase in the interest rate. A person applying for deferred payments must have an impeccable history. "Credit holidays" can be provided for up to 12 months. Moreover, the contract itself is extended for two years, that is, the amount of the monthly fee is reduced.

When is it inappropriate to issue a deferment?

If a borrower who has nothing to pay his bills has a secured loan, thenobtaining a reprieve would only exacerbate an already difficult situation. In this case, it is better to soberly assess the situation and try to sell the property burdened with a loan. After the sale of the pledge, the debtor will not only get rid of unbearable debt obligations, but also return some part of his own money. Postponing to the last and not paying the debt, a person will still be forced to sell the collateral. Only this will be accompanied by lengthy litigation, as a result of which the borrower will lose most of his funds, since fines for late monthly payments will be added to the amount of debt.

Service benefits and reviews

Many borrowers are interested in "loan holidays" in Sberbank. How to issue such a deferment and what it gives, we have considered. It should be understood that this service allows a person not to bring the matter to lengthy and sometimes humiliating litigation and gives him time to solve his problems. Reviews of customers who took advantage of the "credit holidays" were divided into two diametrically opposed camps. One part of the people is grateful to the banks, which allowed them to temporarily not make excessive payments and improve their financial situation. Others, on the contrary, only exacerbated the already difficult situation, significantly increasing the amount of debt. Therefore, it is up to the borrower to decide whether to use this service or not. At the same time, it is very important to realistically assess your material capabilities and realize that thisnothing more than a delay, giving a chance to find a way out of this situation.

Should I take advantage of "loan holidays"?

It should be understood that any delay in repayment of the loan leads to an increase in the overpayment. During the deferment, the principal amount of the debt does not decrease by a penny, therefore, the interest does not decrease either. The longer the "holiday" lasts, the more the cost of the loan will increase. Therefore, it is advisable to use such a service only in exceptional cases.

Not paying off the debt and not making a deferral, a person may face another, even bigger problem. He will be fined. Moreover, cases have recently become more frequent when banks transfer problem loans to collection offices, whose employees begin to literally harass the debtor with visits and threatening calls. And as soon as the duration of the delay exceeds 90 days, the banking institution has the right to initiate litigation and claims activities. After receiving the appropriate court decision, the insolvent borrower may lose the collateral.