Refinancing loans in St. Petersburg: banks, conditions, documents

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

Credits have become an integral part of our lives. For the money borrowed by the bank, we buy cars, equipment and other expensive things. Some of the people have multiple loans, so it can be easy to get confused and miss a payment. And as you know, any violation of the deadlines for the return of bank funds can adversely affect the credit history of the borrower. And yes, the interest on loans is going up. Refinancing consumer loans in St. Petersburg will help you deal with your financial problems.

What is refinancing

Refinancing of loans in St. Petersburg, like any other city, helps borrowers ease their financial obligations. The word itself is derived from two: the Latin "re", which means "repetition", and the word "financing". That is, this is the receipt of a new loan in order to repay previous loan obligations. Very often it is called the simpler and more understandable word "on-lending". Legally, refinancing means the issuance by one bank of funds (target loan) to the borrower to repay one orseveral monetary obligations in another bank.

When refinancing is needed

Refinancing consumer loans in St. Petersburg can get almost any responsible borrower. But this is not always necessary. You can apply for a new bank loan in several cases. For example, if the borrower took out a loan at a certain percentage, for example, at 19%. He paid it regularly for several years, and after a while, financial institutions lowered the rate for issuing loans to 15 percent per annum. However, the principal amount of the debt has not yet been paid. Then you should contact the banks in St. Petersburg. Or if the borrower has several loan obligations in different banks, but at the same time pays them regularly. In this case, it also makes sense to combine all loans into one.

Types of refinancing

Banks in St. Petersburg carry out on-lending of several types of loans. Most often, borrowers turn to credit organizations to repay consumer loans. He is the most popular. Due to the high demand, and, consequently, high competition in this area, banks offer their borrowers more favorable conditions. Mortgage loan refinancing in St. Petersburg is also in demand. The reason is the same. Remember how high the rate on mortgage loans was a few years ago. And what she is now. And such loans, as a rule, are taken for many years. Therefore, paying such a high percentage does not make sense, it would be bestuse the loan service. Refinancing is also carried out on credit cards, as well as on car loans.

Who can get

Almost any borrower who is a client of a bank, both private and public, can receive refinancing of loans in St. Petersburg. The borrower must be of age, have a regular source of income, preferably confirmed. It is also necessary to be a citizen of the Russian Federation and have a residence permit in the region where the refinancing bank is present. A prerequisite for refinancing is the presence of a positive credit history. In the event that the borrower has delays in loan obligations, then, most likely, he will be denied refinancing. It depends on the amount and duration of the delay. In cases where the delay in payment was no more than three days, the credit rating will not change for the worse. Well, if there are open or frequently recurring delays, then most likely they will refuse a loan.

How to get

Getting refinanced is not that hard. It is fully consistent with obtaining a conventional consumer loan. To apply for refinancing loans in St. Petersburg, you must provide the bank with a standard set of documents. It includes: the borrower's passport, pension insurance certificate (SNILS), TIN certificate, driver's license (the right to drive a vehicle). Also, the bank may require a salary certificate according to an approved internal form or2NDFL (personal income tax). If you wish, you can provide the bank with some more documents, they are not mandatory, but they can have a good impact on a positive decision on the application. We are talking about a certificate of ownership of real estate (required if the borrower takes a loan for refinancing a mortgage loan), a certificate of ownership of a vehicle, a foreign passport, a voluntary medical insurance policy. It is worth considering that the passport must have marks of departure to another country for the last six months or a year.

How to get without references

Of course, you can get a loan refinancing in St. Petersburg without references. But it is worth considering that the loan amount should not be too large. Yes, and the interest rate on such refinancing will be slightly higher. But of course, it will not exceed the amount of the annual interest rate on the previous loan. Without providing a certificate of income, a new loan can be obtained from VTB-24 and Sberbank, but only for an amount equal to the balance of the debt in another bank. If the borrower has a salary card of a bank that refinances loans, then he can get an on-lending without providing any certificates and additional documents. Orient Express Bank does not require references if the loan amount does not amount to three hundred thousand rubles.

Where to get it

Give out funds for refinancingloans in St. Petersburg banks are mostly state-owned, but there are also a few private ones. A cash loan can be issued at a good twelve percent at Rosbank, at the same rate a new loan can be obtained at Alfa-Bank, and for up to seven years. Raiffeisenbank will help with a car loan.

The refinancing of a loan in St. Petersburg in Sberbank and VTB-24 is in great demand and has positive reviews, since they have state support, and this is a guarantee of reliability. You can get refinancing for an amount equal to the balance of the debt, and for a larger one. At the same time, the borrower can dispose of the balance of funds at his own discretion.

Different from restructuring

Refinancing or refinancing is sometimes confused with consumer loan restructuring. However, these are completely different financial transactions. Recall that the refinancing of loans in St. Petersburg and other cities of Russia is the receipt of a new loan to repay a previously issued, but in a third-party bank. And restructuring is changing the amount of an existing loan, extending its terms and recalculating interest.

So, let's say the borrower has a loan in one of the banks. He can come to a financial institution and write an application with a request to extend the term of the loan agreement. A bank employee will review the application and make a positive or negative decision on restructuring the borrower's existing loan. In the event that the issue is resolved positively, the bank will notify its clientabout the new payment schedule, the annual interest rate and the amount of the remaining debt, but the contract itself will remain the same. When refinancing, a new agreement is concluded with a new bank.

How profitable is refinancing

Refinancing of loans in St. Petersburg and all other cities of the Russian Federation was adopted in order to reduce the credit burden on the population. But is it always beneficial?

What can you do with on-lending? Of course, reduce the interest rate on the loan, as well as extend its term. With the help of refinancing, the borrower can increase or decrease the amount of the monthly payment by collecting all existing loans into one, including credit cards.

Who is the most profitable to refinance? A young family with a mortgage loan can significantly save the family budget by receiving on-lending. Agree, in this situation even a two percent reduction in the annual rate will play a role.

Refinancing will also benefit those borrowers who want to combine all their loan obligations and start paying at a single, reduced rate.

But not everything is as great as it might seem at first.

Before proceeding with the refinancing procedure, it is worth considering that some banks may charge pen alties for early repayment of credit debt. Sometimes the amount of the fine can cross out the amount that the borrower would have won by transferring his loan to another bank.

Another nuance is on-lendingcollateral loan. So, let's say, if you took a car loan, then the car is pledged to the bank until the loan is fully repaid. After making a decision on refinancing, the car, as a pledge, will need to be re-registered to another bank. And it's not a quick process. At the same time, the borrower at this moment will have to pay the bank a loan at a higher rate, because he will not be provided with anything.

Think, weigh the pros and cons, and then you will understand whether refinancing is profitable for you and make the right decision for sure.