Loan restructuring – details about loan debt restructuring for individuals. Loan restructuring - what is it in simple words? Which banks deal with loan restructuring?

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 it;
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 a written application (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 to explain the current situation orally and state in writing 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;
changes in 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 of the borrower's insolvency, 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, land, securities or other valuable property at the bank’s discretion. 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 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 valid reason that does 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 the necessary package of documents, which contains data on the loan, 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 an additional source of 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, the economic crisis and devaluation of the ruble have made life difficult for borrowers; it has become difficult for them to repay loans, and for some it is 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 individuals and legal entities in obtaining all 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.

Loan restructuring– a procedure that involves revising the terms of a loan agreement if the borrower encounters serious difficulties at the stage of debt repayment. Timely debt restructuring of an individual can reduce the amount of the monthly payment, reduce the financial burden and restore solvency.

Restructuring methods:

Changing the currency of the problem loan;
Adjustment of the monthly payment schedule;
Reduced interest rates and commissions;
Partial write-off of fines and other charges;
Extension of the contract;
Credit holidays – deferment of payments.

The procedure involves an analysis by the creditor of the current situation in relation to the debtor’s financial obligations. Acceptable interest rates, amounts and payment schedules are calculated, with the help of which it is possible to restore the client’s solvency. In fact, the very essence of restructuring is to find possible ways to reduce the risk of bankruptcy of a citizen.

Reasons for restructuring:

Sharp fluctuations in exchange rates for foreign currency loans;
Loss of the borrower's main source of income;
Recognition of the debtor as incompetent or limited in capacity;
The occurrence of unforeseen expenses and material losses;
The borrower's use of maternity leave to care for a child;
Conscription into the army for military service in the RF Armed Forces;
Court verdict on punishment in the form of imprisonment.

Note! The decision on the possibility of restructuring is made by the creditor individually. The organization has the right to require documentary evidence of the financial insolvency of the borrower.

Documents for loan restructuring

Each creditor puts forward its own list of requirements for the client initiating restructuring.

Main documents:

A copy of the borrower’s passport (the original is presented when signing the updated agreement);
Documents confirming the existence of compelling reasons for restructuring;
Certificate of income, account statement or other document confirming solvency;
An extract from the work record book, a certificate from the employer or a certified copy of the employment contract.

Having collected documents for restructuring, the debtor must fill out an application for receiving the service. Banks suggest first making a simplified request.

Let us give an example of a simplified application for restructuring at Sberbank.

You can view and download the application.

To initiate the restructuring procedure, you must correctly fill out and submit an application along with a package of documents. After making a preliminary decision, employees of the financial institution will inform you about further actions.

At the application review stage, a detailed explanation of the reasons for the deterioration in solvency may be required.

Sample application for loan restructuring indicating the reason for insolvency

You can download a sample application from this link.

Restructuring as a bankruptcy procedure

If the bank refuses to revise the terms of the agreement, the borrower will retain the right to initiate bankruptcy proceedings with subsequent debt restructuring through the court. See Federal Law No. 127-FZ “On Insolvency (Bankruptcy)”.

According to current legislation, debt restructuring in bankruptcy is carried out only after the involvement of a qualified expert - a financial manager. Which is obliged to develop an action plan aimed at restoring solvency and fulfillment of the borrower’s obligations.

Every year this procedure becomes more popular. According to a report published on the Fedresurs website, in 2019 the courts declared about 69 thousand Russian citizens bankrupt, and in total since 2015 more than 163 thousand. However, at the end of the year, creditors managed to return only 3.5% of debts. Procedures worth ~225.6 billion rubles were initiated, of which only ~8 billion were returned.

Features of debt restructuring through bankruptcy:

The creditor's permission is not required to renegotiate the terms of the problematic contract. It should be understood that the new procedure for repaying debt during debt restructuring through bankruptcy proceedings is approved not by the creditor, but by the court. It is the court that changes the repayment period of the debt and establishes new rules for the fulfillment of debt obligations.

In order for the court to consider an application for bankruptcy status, the debtor must have a stable income, the amount of which is sufficient to fulfill obligations for 36 months. If the amount is not enough, the financial manager has the right to initiate a procedure for the sale of the bankrupt’s property. Based on these conditions, new debt payment terms will be calculated.

Also, the debtor must not have a criminal record for economic crimes and be declared bankrupt within the last 5 years.

Bank accounts, savings and deposits are seized, but the debtor is guaranteed to receive a portion of his own earnings in the amount of the subsistence minimum and the necessary funds to support dependents.

The financial manager opens a special account, which receives the bankrupt’s wages, money from the sale of his property, etc. This account also pays for legal costs, services of a manager and other specialists, and repayment of loan debt.

Mandatory credit holidays are automatically provided for up to four months, during which the debtor is not required to make any payments. This makes it possible to restore solvency.

The debtor officially receives protection from the actions of debt collectors. The process of forced debt collection by bailiffs is also suspended. Claims received by the bankrupt are considered by the financial manager.

The work of the financial manager is paid. The cost of services starts from 25,000 rubles.

A temporary ban on leaving the country is possible.

Pros and cons of restructuring

The debtor gets the opportunity to improve their financial situation, and the credit institution reduces the risk of bad debts.

Advantages:

Restoring the borrower's solvency. Proper adjustment of the terms of the contract will reduce the level of payment burden;
The likelihood of partial or complete write-off of accrued interest and penalties for late returns;
The procedure for forced debt collection is excluded;
Maintaining a positive credit history (only if bankruptcy proceedings are not initiated).

Along with the advantages, there are also disadvantages. Before using the service, you should familiarize yourself with the possible risks and difficulties that the debtor may encounter.

Flaws:

The total overpayment on the loan increases after the initial loan term is extended;
The likelihood of approval of a restructuring application in case of low income is reduced;
Problems with obtaining new loans;
Lack of an option to refinance (consolidate) several problem debts.

Let's sum it up

The undeniable advantage of restructuring for the borrower is a reduction in the amount of the monthly payment and restoration of solvency. But this procedure leads to a significant overall overpayment on the loan.

Here's a simple example:

You have a loan of 500,000 ₽, repayment period 36 months (3 years), rate 15% per annum. The annuity (fixed) monthly payment in this case is 17,333 rubles, and the total overpayment on the loan is 123,976 rubles (that is, in total you will pay 623,976 rubles).

Now we will increase the repayment period to 60 months (5 years) leaving the same amount and annual rate. We receive a payment of 11,895 rubles per month, which is significantly lower, but the total overpayment is already 213,698 rubles. Draw your conclusions!

In addition to the obvious profit for banks, restoring the solvency of the borrower is necessary for this reason. To explain in simple words, according to the requirements of the Central Bank of the Russian Federation, banks are required to have a reserve for overdue and impaired loans. This reserve is formed from the bank’s own profits. Thus, the more overdue and impaired loans in the bank’s loan portfolio, the greater the amount of reserve required and, accordingly, the less free working capital that can generate profit remains.

If the borrower cannot cope with monthly payments, he can negotiate with the bank on restructuring. Many people confuse refinancing and restructuring, but refinancing means opening a new loan. Refinancing is a change in the terms of an existing loan.

Restructuring is a procedure for changing the terms of loan repayment. Debt is restructured if they want to reduce debt payments, and this process may also mean an increase in the loan period. The bank extends the loan over a longer period of time.

Another way to reduce your credit burden is through credit holidays. The organization can exempt the client from payments for several months (usually 3-4). The payment has the right to be reduced to the minimum. Credit holidays, however, also increase the lending period, and the number of payments increases accordingly. There are cases when the interest under the agreement is reduced, the currency of the loan is changed, fines are written off, etc.

Max. amount: up to 5,000,000 ₽

Proc. rate: from 9.9%

Min. amount: from 50,000 ₽

Age: from 20 years

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Max. amount: up to 3 million ₽

Proc. rate: from 8.99%

Min. amount: from 50,000 ₽

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Duration: up to 7 years

Solution: from 1 day

Max. amount: up to 5,000,000 ₽

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In what cases can you count on restructuring?

In order for the bank to approve a loan restructuring, there must be appropriate grounds, since no one will simply change the terms of the debt.

The borrower can take advantage of restructuring if:

Lost my job. You will need to attach the relevant certificates.
A child was born and family expenses increased.
A relative fell ill.
Called to serve.
There was a layoff at work and wages were reduced.
Lost ability to work.

In this case, you will need to contact the bank with an application to change the terms of the agreement.

Restructuring by debt type

This measure helps to avoid problems that arise when the financial situation deteriorates not only in banking organizations. There are different types of debt restructuring:

1. For loans.

This is a set of measures by a credit institution that is aimed at reducing the client’s credit burden. If the borrower’s situation has changed and he cannot repay the debt on time, then he can take a credit holiday, increase the loan term, etc.

2. For housing and communal services debts.

If these are debts for housing and communal services, then the collector will be the management company. Thanks to restructuring, new payment terms, payment amounts, as well as measures in case of non-payment of debt can be established. The management company may not agree to the restructuring, but in most cases a positive decision is made.

3. On taxes.

The tax office provides installments for up to five years. At the same time, you can get a deferment in payment for either one tax or several. Tax restructuring is provided when there are grounds, for example, bankruptcy of an individual. The application is submitted to the authorized body.

Types of restructuring

There are several restructuring programs:

Credit holidays - debt payment is postponed for a period of one month to 2 years. During this period, the borrower must pay only interest. After the holidays, you need to pay more, since the amount of the overpayment increases for the entire loan period. Deferment is a great option for those who have lost their jobs.
Extension or increase in loan term. At the same time, monthly payments will be reduced. If penalties were applied, they are distributed by month. The extension period should not exceed the maximum for the bank.
Currency changes are typically used during devaluations. For a credit institution, changing a loan taken in dollars or euros to rubles is not profitable. Typically, currency replacement is a consequence of a bank management decision under the influence of external political factors. It is also difficult for some clients to cover their debts due to the rising dollar. Converting to rubles will increase the rate, however, this option will be beneficial to the borrower.
Reduced monthly payment. In order to reduce the payment, the loan itself under the agreement is extended, but the amount of the overpayment will be increased.
Write-off of penalties. You can receive forgiveness from fines and penalties only if the client provides compelling reasons for the deferment, for example, a court decision declaring the borrower bankrupt. In this case, the credit institution believes that it is realistic to repay the loan without penalties. As a rule, installments are issued for a fine.

How to do a restructuring

The borrower submits an application, which must be accompanied by the following documents:

Credit institutions may require you to provide other documents. It is worth understanding that the bank is not obliged to restructure the debt. The documents may be reviewed, but may seem unconvincing.

You must submit your application before it is overdue. Credit institutions are more willing to negotiate with such a borrower.

The main condition is that the bank must be sure that the client needs help and this measure is necessary to pay off the debt. Otherwise, credit institutions will only waste time, even though they will make a profit by increasing interest or credit holidays.

How many times can you restructure a loan?

The legislation does not limit the quantity in any way, so this issue must be clarified with the lender. Theoretically, if the client and the bank are ready to restructure the loan, then they can be issued in unlimited quantities.

How does restructuring affect credit history?

Not if the bank changes the terms of the agreement before the delay occurs. Any payment problems will not be sent to the credit bureaus. If the client is late in repaying the debt, the credit history deteriorates.

Benefits of restructuring:

The main advantage of restructuring is that, as a rule, it is performed free of charge. Costs may be incurred if it is necessary to sign an additional agreement to the notarized pledge agreement. This measure will help the lender get out of a difficult situation. If the bank refuses to restructure, then you can provide a copy of the application to the court.

Most people have probably heard about refinancing, but not everyone understands exactly what loan refinancing is and how to apply for it, which banks provide such services and which credit institution offers the best conditions. We will answer all these questions and help you make a choice.

Financial problems and difficulties that arise during the loan repayment process may cause the borrower to default. The result is legal proceedings, a procedure for forced collection of debt, or a bankruptcy process voluntarily initiated by the debtor himself. According to the draft law “On Bankruptcy”, the court is obliged to order restructuring of the loan of a problem borrower. Bankers themselves also resort to restructuring if they do not want to bring the matter to court. Is restructuring a profitable solution and an effective way to get rid of financial problems? Let's try to understand these issues.

What is the restructuring of a bank loan?

Loan restructuring involves changing the terms of the loan agreement in order to reduce the burden on the borrower and reduce the amount of the monthly payment. Unlike refinancing, restructuring can only be done with the bank that provided the loan. If during refinancing there are delays, unpaid penalties, etc. are reasons to refuse refinancing, then during restructuring, the presence of debt, on the contrary, is often the main reason for making changes to the loan agreement. Sometimes financial institutions even promise to “cancel” accrued penalties to help the client “get back on schedule.”

Debt restructuring is a good opportunity to avoid problems that inevitably arise for the borrower when the financial condition deteriorates (loss of job, reduction in income, etc.). By changing the terms of the loan agreement so that the borrower's planned monthly payment is reduced, the bank pursues several goals. Firstly, he takes care of the quality of his loan portfolio (preventing an increase in the share of overdue debt), and secondly, he gets the opportunity not to go to court and not spend money on preparing a claim.

The benefits of restructuring for the borrower are more significant. A client whose terms of a loan agreement the bank agrees to change may:

maintain your positive credit history (in case of a short delay);
prevent the start of legal proceedings with the bank (which will subsequently become an “indelible dark spot” on the credit file);
save your money (not all borrowers receive this benefit);
avoid default, as the bank minimizes the monthly scheduled payment and provides the opportunity to repay the loan according to a new schedule;
get the opportunity to get rid of the unpaid penalty;
avoid forced collection of the debt during enforcement proceedings.

We will tell you in more detail how restructuring can be carried out.

Main types of loan restructuring

If you contact the bank in a timely manner (before the financial institution files a lawsuit in court for early collection of the entire debt amount), the borrower can count on the following restructuring options:

Loan extension(increasing the contract term, resulting in a reduction in the planned monthly payment, but an increase in the amount of overpayment on the loan). For example, if the amount of your debt was initially 200,000 rubles, the term was 24 months, and the rate was 30% per annum, then you would have to pay 11,182.56 rubles per month, the overpayment amount would be 68,381.54 rubles. Let’s assume that after 6 months the borrower failed to repay and applied to the bank for a 12-month extension. Then his payment will be reduced to 7,668.65 rubles, but the total amount of overpayment will increase to almost 92,600 rubles (more than 24,000 rubles). Personal calculations can be performed using a loan calculator.
Changing the lending currency. For example, due to the rise in the dollar exchange rate, it has become difficult for many borrowers to repay loans issued in American currency. Transferring a loan into rubles at a rate that corresponds to the current lending program may be beneficial to the client. However, this is not a popular restructuring option.
Providing credit holidays(only for the “body” of the loan, only for interest or holidays, implying that the debtor is temporarily relieved of any payments on the loan). That is, the borrower can pay only the “body” of the loan for 3-12 months (the most profitable option, allowing to reduce the overpayment on the loan) or only the interest (on the contrary, the least profitable case - interest is charged on a fixed, non-decreasing amount). A rare case is the provision of the right not to pay the loan at all for 3-6 months. For a better understanding of the issue, we recommend that you familiarize yourself with the basic methods for calculating loans.
Transferring a card loan to a cash loan(not used often, it is beneficial due to the fact that the rate on consumer cash loans is usually lower than on card loans).
Write-off of penalties.
Reduced loan rate. Refers to refinancing programs, as a rule, carried out only under the condition of an ideal credit history.
Combined option. For example, prolongation is often combined with a change in the currency of the loan.

If the borrowers were in arrears on the loan or interest, the lender offers to either repay the debt or capitalize it. Note that restructuring with capitalization is always unprofitable: due to overdue interest, the balance on the “body” of the loan increases. For example, the debt balance is 100,000 rubles, the overdue amount is 5,000 rubles, including 3,000 for the “body” of the loan, 2,000 for interest. With capitalization, the amount of the “body” of the loan will increase and amount to 102,000 rubles (since 3,000 rubles of debt on the “body” were already included in 100,000 rubles, and 2,000 rubles in interest were added to them).

It is quite obvious that restructuring can be considered the best option for solving financial problems only in the case where debt servicing on the same terms is impossible for the borrower due to valid reasons.

In order to carry out restructuring, the borrower must submit an application and a number of documents to the bank. We will describe their list and the procedure for considering the application below.

How to carry out restructuring: bank requirements and registration procedure

Typically, to carry out a restructuring (regardless of whether you yourself contacted the bank for this purpose, or the credit manager contacted you and offered to change the terms of the agreement), the following documents are required:

general passport;
application form;
work record book (with a notice of dismissal, if you have lost your job since the loan was issued);
a certificate from the place of employment in form 2-NDFL for 6 (12) months (from the place of your former job, if you are fired);
a certificate from the employment service about registration (indicating the amount of benefits paid);
agreement of the spouse to change the terms of the contract (for mortgage lending).

The main condition that applies to borrowers applying for restructuring is the bank’s confidence that the debtor really needs help, and that changing the contract will help him “get on schedule.” Otherwise, financiers only risk wasting time (despite the fact that most often they receive additional profit in the form of increased interest when extending a loan or credit holidays on the “body” of the loan).

For example, Sberbank agrees to consider applications from borrowers only if their financial condition worsens as a result of:

a decrease in income as a result of layoffs or changes in wage levels;
loss of an additional source of income;
the onset of parental leave;
conscription into the army;
serious illness, disability, death (in this case, the debt is subject to restructuring, which the heirs will have to pay).

In addition to standard restructuring conditions, Sberbank may offer to change the procedure for repaying a loan within the grace period (for some types of lending) or change the order of debt repayment (usually penalties are charged first, then interest and only then payments on the “body”).

The advantage of restructuring is that it is most often carried out free of charge: only with mortgage loans can the borrower incur associated costs associated with the need to sign an additional agreement to the notarized collateral agreement. A significant disadvantage of restructuring is considered to be an increase in overpayments on the loan (with the exception of the use of two options: transferring a foreign currency loan to a ruble loan and providing interest holidays).

Thus, if your financial situation has worsened and you have made several late payments, then you need to urgently contact the bank and ask to restructure your loan. This will allow you to avoid serious troubles and get out of a difficult situation with minimal losses. The bank may refuse to carry out the restructuring; in this case, ask for a copy of your application with a mark of “incoming” registration and a written refusal: these documents may be useful to you in court. The financier's claims may be partially or completely rejected by the judge if it turns out that you asked for help that was denied to you.

If the monthly scheduled payment on a cash loan, mortgage or car loan makes a significant hole in the family budget, you should contact a financial institution to change the terms of the loan agreement. Let's take a closer look at how debt restructuring works.

What is loan restructuring?

Measures to restructure credit debt are applied to bona fide borrowers who find themselves in a difficult financial situation and are unable, for certain reasons, to fulfill obligations on the same terms.

Thus, restructuring is a change in the main parameters of a loan debt: interest rate, monthly payment amount and payment schedule. Using this procedure, you can improve the client’s solvency and prevent bankruptcy.

If a person is faced with problems repaying debt obligations, loan restructuring may be one of the options to resolve the situation. The wrong behavioral line is to hide from the creditor or refuse to make payments.

Most often, financial institutions meet their clients halfway, but there must be serious reasons to begin the loan restructuring procedure. These include the following cases:

decrease in the borrower’s income (loss of job, delayed wages, retirement, etc.);
loss of performance due to injury, serious illness, etc.;
a sudden jump in the exchange rate of the dollar or euro (if the loan was received in a foreign currency);
change in family status (divorce, the arrival of a newborn baby in the family, going on maternity leave);
natural or man-made disaster, including fire, flood, earthquake.

These are just some of the reasons for a borrower's insolvency. In each individual case, the financial institution considers the circumstances that influenced the deterioration of the client’s well-being, and only then decides to revise the terms of the loan.

It should be understood that debt restructuring is not noted in the client’s credit history. But this procedure allows you to prevent delays, which have an extremely negative impact on the financial reputation of the borrower and reduce the chances of further lending from banks.

Restructuring options

There are several main loan restructuring schemes. Below are the most common types of contract renewals that are used in most domestic financial organizations.

Extension of loan terms

In banking practice, the term “prolongation” of a loan is also used. The result of such manipulations is an increase in the terms of the contract and a decrease in the size of regular payments. Thus, the financial burden on the client is reduced.

Let's look at a specific example. Let's say the client took 300,000 rubles. for a 2-year term at 12.9% per annum. The monthly payment was 14,248 rubles, the amount of the overpayment was almost 42 thousand. But after 6 months, the borrower realized that he could not afford the loan.

The financial institution extended the loan, extending the term for another year. As a result, the monthly contribution amounted to 10,093 rubles, which, of course, is less than previous figures. However, in this case the amount of overpayment increases to 63,000 rubles.

Extending a loan means reducing the amount of payments and increasing the amount of the final overpayment. Therefore, it is worth taking a fairly balanced approach to this debt restructuring scheme and weighing the pros and cons.

Credit holidays

This is probably the most optimal type of restructuring for the borrower, in which a time period is established during which the debtor does not pay either the principal of the loan or the accrued interest (an option is to suspend both types of payments). Credit holidays usually last from several months to two years.

How is this restructuring scheme beneficial for the client? If the bank meets the debtor halfway and allows him not to fulfill his loan obligations for six months, then during this time he will be able to get a job, find another source of income, that is, solve his financial problems.

In practice, credit institutions rarely provide a full deferment, because it is not very profitable for them. Typically, the debtor still makes certain payments, but even in this case, he can breathe more freely due to the reduction in the monetary burden.

Changing the loan currency

Restructuring of loan debt by changing the currency (usually from dollars or euros to rubles) and recalculating the main indicators of the loan is required only in some cases. For example, this scheme was actively resorted to in 2014 after a serious fall in the ruble exchange rate.

Transferring a loan into rubles is beneficial for the borrower, but not for the financial institution. That is why creditors do not always agree to such a scheme, because interest rates decrease and, accordingly, the bank’s profit decreases.

Refinancing

In this case, this means refinancing with this particular financial institution, and not restructuring of loans from other banks. The client is given the opportunity to repay the old loan by obtaining a new one on compromise terms (possibly increasing the loan term and reducing monthly payments).

Recalculation of loan interest towards a lower rate is practiced by some banks. This scheme is only available to clients with an impeccable financial reputation. As a result of this restructuring, the monthly burden on the family budget is reduced.

Write-off of penalties

In some cases, financial companies provide clients with deferments for the payment of penalties, penalties and interest, or even write off such additional amounts.

This debt restructuring option is used for problem loans, but in practice it is extremely rare. This is possible, for example, in case of bankruptcy confirmed in court, or when the client repays most of the loan.

Sometimes the bank restructures lending terms using mixed schemes, when, for example, the extension is supplemented by writing off penalties or changing the currency. That is, in all cases, lenders strive to find an individual solution, which, of course, will be beneficial to them, and not just to the borrower.

Main stages of the procedure

Debt restructuring is possible for a mortgage loan, car loan, consumer loan and other financial products. Each case has its own scheme, and all banks set their own rules for the procedure.

The borrower needs to fill out an application using a special standardized form. The reason for insolvency should be indicated on the paper, and information about income and expenses, the availability of property and the client’s marital status should be entered in the required fields.
Then the debtor can choose one of the schemes for restructuring credit obligations, including deferment of payment of the loan balance, drawing up an individual plan for repaying debt and interest, full or partial write-off of penalties, extension.
Next, the application will be sent to specialists working with “problem” clients. Employees will talk with the debtor and together choose a compromise option for refinancing.
After this, the borrower needs to collect a complete package of papers, which includes a loan agreement, income certificates (if the client is currently working), as well as documents that would confirm the validity of the restructuring (certificate of upcoming layoff, certificate of incapacity for work, etc. ).
Over a certain period of time, employees of the financial institution review the submitted documents and make a final decision on changing the terms of lending to a particular person. In this case, both parties sign a new agreement.

Similar procedures are carried out in other banks. For example, if you are interested in restructuring a VTB 24 loan, you should contact the office of this large financial institution directly. Although it is curious that there is no additional information on the official website. Therefore, we can assume that everything is decided strictly on an individual basis after a personal interview.

Pros and cons of restructuring

So, we looked at what debt restructuring means and how it works. It remains to be seen how beneficial such a procedure is for financial companies and borrowers directly. If we talk about banks, they are trying with all their might to reduce the number of defaulters.

This interest can be explained by the fact that the Central Bank obliges credit institutions to form a reserve fund for overdue loans. It is created from profit, therefore, the fewer malicious debtors, the more profitable it is for the bank.

It should also be understood that financial institutions are accustomed to making a profit from almost all transactions. Therefore, they will never enter into an agreement with a defaulter on unfavorable terms.

Now we need to understand what benefits we derive from loan restructuring. All borrowers should carefully weigh the pros and cons of changing the terms of the agreement.

Benefits for the client

As noted above, with the help of restructuring, the debtor has the opportunity to reduce the financial burden for some time. Experts also point out the following points as the positive aspects of this procedure:

the ability to maintain an “untainted” financial reputation (subject to short-term delays);
exclusion of communication with debt collectors (bank specialists and collectors);
avoidance of litigation with a credit institution (transferring a case to court has a negative impact on credit history);
certain savings of money (this is only possible if the lending currency is changed, penalties are written off, and interest is reduced);
drawing up a new, more comfortable schedule for making monthly payments;
deferment of payments or reduction in the amount of monthly contributions (this is typical for some restructuring schemes).

Disadvantages for the client

Restructuring can lead to a kind of debt bondage. The client receives an extended agreement, in which the loan term is extended, and, consequently, the final amount of overpayment increases significantly. That is, the person will remain in debt for a longer time, and will also pay extra to the bank for this.
Unfortunately, the financial literacy of “ordinary” people leaves much to be desired. Many debtors, trying to resolve the loan situation as soon as possible, sign a new agreement without reading it. The result is increased interest rates, penalties and other “surprises” in the fine print.
The bank combines the loan body with interest debts, which ultimately increases the loan itself. For example, a person owed 300,000 rubles, but his debts amounted to 70 thousand. When signing a new contract, these amounts are added up.

The above are just some of the pros and cons of refinancing for borrowers. It should be understood that the issue of restructuring a consumer loan and other loans is always resolved on an individual basis, so there is a possibility that the new agreement will be a compromise and will suit both parties.

Experts advise carefully weighing the pros and cons before completing the procedure. If you have not yet become a malicious debtor and your financial reputation is impeccable, it makes sense to restructure the debt.

If the credit file is already damaged by long-term overdue payments, it is worth considering whether it is necessary to extend the contract and increase the term and the final overpayment. In such a situation, it is better to find additional “reserves” and try to return to the previous debt repayment schedule.

Conclusion

So, let's summarize some results. Loan restructuring at VTB, Sberbank and other companies is a good opportunity to reduce the debt burden without deteriorating your financial reputation. However, starting such a procedure is not always beneficial.

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