Is loan restructuring profitable?! Is loan restructuring profitable? I want to know what restructuring is

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 reduced 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.

A borrower who has lost his solvency has the right to seek help from the bank that previously provided the loan. What is loan debt restructuring? This is a set of measures that helps you pay off your obligations on more favorable terms. At the same time, organizations receive their funds back, and their clients get out of difficult financial situations with minimal losses.

Debt restructuring refers to a change in the original terms of the loan agreement. Borrowers, when turning to banks for financial support, undertake to act in accordance with the rules of the signed agreement. The document regulates the provisions on loan repayment, the procedure for paying off debt, the timing and amount of payments, and the possibility of early fulfillment of obligations. Other conditions are also prescribed, such as the amount of interest on loans, the procedure for calculating fines for late and incomplete transfers.

In any case, credit institutions will strive to get their money back. To achieve this, in the event of delays, extreme measures may be taken, such as recourse to arbitration or the involvement of collection services. A complete refusal to pay will only worsen the already unenviable situation of the borrower. The result may be the collection of larger amounts due to accrued penalties, repossession of property and a damaged credit reputation, which will certainly play a negative role when trying to borrow money in the future.

If the financial situation of clients worsens, banks, at their request, can offer a number of measures that will improve solvency. Usually we are talking about refinancing and restructuring. In exceptional cases, the borrower can defend its rights in court, but only on the condition that the bank itself has grossly violated the terms of the agreement.

How is it different from refinancing?

To reduce the financial burden of loan obligations, borrowers often pay attention to restructuring and refinancing procedures. The goals of the stated actions are the same - assistance in repaying debt. However, execution algorithms may differ significantly. Refinancing means taking out a loan in order to repay the previous one on more favorable terms.

As a rule, the advantage is a lower interest rate, which is noticeably reflected in monthly payments and the total amount of debt. Also, an additional loan can be provided for a longer period, which also reduces the amount of payments.

Refinancing can be arranged either with the original bank issuing the loan or with a completely different one. Currently, many credit institutions provide similar services. Having assumed responsibility for repaying current debts, they draw up new credit agreements with clients. The restructuring procedure is characterized by the presence of other rules.

The financial burden is reduced under the current contract. The parties revise the original terms, as a result of which the borrower will be able to repay debts with less losses.

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When required

Credit institutions are reluctant to agree to the terms of changing contracts with clients. A decrease in interest rates or an increase in the term of debt has a negative impact on profit indicators. However, if there is a real threat of possible non-payments, the organization’s specialists can meet their clients halfway. In some cases, if there are several delays in payments, banks, before resorting to arbitration, often invite clients to reconsider the original terms of the agreement.

Dismissal
Official salary reduction, including as a consequence of transfer to another position or to a reduced work schedule
Changes in family circumstances (birth of a child, moving and other factors)
Long-term disability of the borrower or his family members
Changes in exchange rates
Deterioration of the borrower's financial situation for other reasons

It should be remembered that the use of restructuring is a right, not an obligation of banks. Credit institutions, depending on their internal policies and the client’s circumstances, may refuse to revise the current terms of the agreement. In any case, the presence of an additional agreement or its absence does not in any way affect the obligation to fulfill the terms of the loan. The borrower will also be required to make debt payments in full and on time, which is confirmed by the provisions of Art. 309 and 310 of the Civil Code of the Russian Federation.

Unilateral refusal to further fulfill the terms of the agreement is not permitted. Therefore, you should not violate the payment schedule after filing an application for restructuring. The debtor will need to provide significant evidence to reduce his solvency. Moreover, banks prefer to work and even make some concessions with those clients whose financial discipline is not questioned.

Advantages

Revision of the terms of a loan agreement does not always mean a general reduction in the financial burden of the debtor. Usually we are just talking about increasing the debt period. At the same time, the amount itself does not decrease; moreover, it can be increased.

What is the benefit to the borrower from restructuring? The worsening financial situation makes making monthly payments to a bank account problematic. For borrowers, periodic payments may not be commensurate with their income. Revision of contractual relations towards a longer period allows you to reduce the monthly burden due to the overall increase in debt. As a result, the bank does not lose its profits, but clients get the opportunity to pay off their debts less painfully in material terms.

Among the main advantages of restructuring are the following:

Possibility of maintaining a positive credit history.
Consolidation of your own financial efforts by changing the terms of the contract in favor of the payer.
No penalties for late payments.
Details of further cooperation are discussed only at the level of interested parties, preventing litigation and involving third parties in a conflict situation.

Who can use it and when?

Regardless of the bank’s decision, you should seek help as early as possible, avoiding possible late payments. The chances of receiving approval from a credit institution are higher if the borrower’s financial discipline does not raise questions. Revision of the original terms of the contract is permitted in the presence of a number of circumstances. The main criterion is a decrease in solvency. Most often, the financial situation worsens due to:

job loss
loss of incapacity due to illness
changes in marital status
other options

How to choose a bank

The restructuring procedure can be carried out by the bank where the loan agreement was originally signed. The organization has the right to revise the current conditions at its discretion. It is better to clarify the admissibility of making possible adjustments initially. However, the proposed options do not always meet the requirements of borrowers.

If the restructuring procedure is unprofitable for the payer, it is recommended to pay attention to refinancing services. Currently, most banks agree to assume debt obligations of borrowers on more favorable terms. Some refinancing programs require repayment of several loans at the same time. In some cases, actions are available even with a negative financial reputation.

How to register

Late payments for several months serve as the basis for the bank's close attention to the borrower. A notice is sent to the debtor with an offer to repay the arrears as quickly as possible. Otherwise, collection may be carried out with the involvement of the courts.

In an effort to return their funds, banks have the right to offer clients a number of ways to resolve problems, including a restructuring plan. However, to reduce the negative consequences, it is recommended to contact credit institutions immediately, avoiding delays. Thus, conscientious clients have an advantage and the chances of revising credit provisions on favorable terms increase.

What programs exist

There are several options for resolving a borrower’s financial difficulties with the help of a bank. Restructuring measures include extending the term of the contract, lowering the interest rate, changing the currency of loans, and others. The main ones are discussed below.

Extension of the loan agreement

The most popular debt restructuring measure is the extension of the loan agreement. Increasing the loan term does not reduce the total amount of debt, and even increases this indicator, but the need to transfer a smaller amount each month has a positive effect on the borrower. Typically, the condition for a possible extension is specified initially. Therefore, before contacting the bank, it is recommended to review the provisions of the document again. But even if there is no such clause about changing the payment schedule, it is worth contacting the organization’s employees directly. There is a high probability that in the presence of confirmed unforeseen circumstances that have changed the level of solvency of the borrower, the bank will accommodate the client halfway.

The terms of the extension are negotiated after the payer writes a corresponding application and provides supporting documents. Usually the procedure does not take much time. Within a few days, adjustments can be made to the original conditions. In order to avoid future overpayments on the cost of the loan as a result of extending the term of the contract, borrowers in most cases are not prohibited from repaying the debt ahead of schedule after their financial situation has stabilized. This measure will help avoid additional costs in the form of accrued interest.

It is worth considering that the bank is unlikely to agree to restructure debt obligations in the form of prolongation within the framework of one agreement. Therefore, it is worthwhile to take measures on your own to improve your financial situation.

Another type of debt restructuring is the provision of credit holidays. This measure involves introducing some temporary changes to the payment schedule in the form of a deferment. The following options are possible:

Full deferment. The borrower has the right not to repay the loan for a certain period, usually several months. During this time, no penalties are provided.
A partial deferment involves paying only part of the payments. Usually we are talking about repaying interest without taking into account the principal debt.

Banks prefer to use the 2nd option, which may not be so profitable for the borrower, especially at the initial stages of repaying obligations, when the amount of interest is quite significant. Credit holidays are considered as an additional service of the bank. You can use it when special circumstances arise in your life, for example, when you are on maternity leave.

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Reduction of interest under the agreement

The most successful option for payers is to revise the loan agreement in favor of reducing the interest rate. The benefit for the borrower is obvious, since there is a real relief of the debt burden, which can be quite significant. Reducing the interest rate under the current loan agreement is the most beneficial measure for the payer. This is especially true for long-term agreements. For example, when repaying a mortgage with annuity payments, even a slight relaxation will save a decent amount for the borrower.

As a rule, banks are reluctant to agree to lower interest rates, preferring to restructure loans in other ways. However, the Central Bank of the Russian Federation issued a Letter dated January 30, 2018, the provisions of which allow credit institutions to revise the current rate. Moreover, when drawing up contracts, it is recommended to use a clause on the possibility of revising the cost of the loan if the key rate changes.

If you wish to take advantage of such measures, the client will have to provide the bank with a number of documents with information about his solvency and current financial condition. However, it is worth remembering that a likely reduction in the interest rate is only a recommended measure; the bank makes the final decision independently, focusing on the internal policy of the institution. There are high chances of approval of the request if banks have similar refinancing programs in their arsenal. In addition, one of the conditions for revising the contract is the financial discipline of the borrower. Delays in payments are undesirable.

Currency replacement

Another way of restructuring is to change the currency of the loan. Relevant when the national currency exchange rate is unstable. The devaluation of the ruble in 2014 financially collapsed the solvency of many borrowers who entered into contracts in foreign currency. Banks usually do not benefit from renegotiating such terms. Typically, changes to an existing contract occur under the influence of external factors and largely depend on the decisions of the management of organizations.

Write-off of penalties

Late payments or violation of other terms of the contract lead to penalties. In addition to paying the principal and accrued current interest, the borrower has an additional obligation to repay the penalty. The cost of fines and penalties can be quite high. The penalty is calculated for each day of delay in amounts significantly exceeding the usual accrual of interest. Therefore, if there are no transfers for a long time, the debt can grow significantly.

The reason for untimely non-payments may be not only the banal reluctance to pay and the irresponsibility of the borrower. Force majeure and the occurrence of unfavorable situations also do not allow repaying the debt on time. Restructuring as a write-off of penalties is quite rare. However, if you have valid reasons, you can try to contact the bank for help. If the organization’s specialists consider the arguments presented convincing, then it is likely that the accrual of penalties and fines will be canceled for the borrower.

You only have to pay the principal and interest. Typically, this measure is resorted to in situations in which the borrower was not able to make the next payment, for example, during hospitalization or departure.

Combination of several methods

In difficult situations and difficult financial situations, the restructuring program can combine several methods simultaneously. The agreement between the bank and the client is carried out through a personal conversation and an individual approach. Combining several ways to reduce debt at the same time is not always beneficial for borrowers. The main advantage for them is receiving a deferment without accruing additional penalties. In this case, the period of validity of the loan agreement and the total amount of debt may be increased.

With the help of government support

In some cases, the state allows its active participation in helping borrowers. Such actions become possible with the development of special programs at the federal level. One of these is support for certain categories of mortgage borrowers. The Housing Mortgage Lending Agency, created for these purposes, is designed to provide assistance to the population with the repayment of obligations in the amount of up to 600,000 rubles, but not more than 20% of the total debt. It is envisaged that the state will assume responsibility for paying part of the debt.

Actions are aimed at special categories of borrowers, which may include persons falling under the following criteria:

disabled people
combat veterans
persons under 35 years of age with children
parents of disabled children
employees of municipal institutions, state authorities and local government

Documentation of decreased income may be required. Applications are considered if the income for each family member is less than 2 subsistence minimums.

Participation in the program listed below is free. A number of conditions must be met:

The collateral housing must be the only one
Housing should not be characterized as “elite”
The footage of the apartment is taken into account: for a one-room apartment - up to 45 sq.m., for a two-room apartment - no more than 65 sq.m.; three-room apartment – up to 85 sq. m. If there are 3 or more children, the footage of the home is not taken into account

More details about state support programs can be found by contacting the bank. It is worth considering that the promotions are limited, and refusal may be possible if the selection criteria are not met.

What documents are needed

Initially, clients apply for restructuring. The reasons for revising the terms must be supported by a number of documents, including:

income certificate
work book confirming the fact of dismissal
documents on the incapacity of a citizen
child's birth certificate
certificate of family composition
spouse's consent to amend the mortgage agreement
certificate of registration with the employment service
other documents confirming decreased solvency

Loan restructuring does not always mean more favorable conditions for the borrower. Banks are reluctant to take steps that reduce their profits. Most often, options are considered in which the loan term is extended and, accordingly, the total amount of debt is increased. Thus, despite the decrease in the volume of monthly payments, the amount of debt obligations increases.

But if the current situation does not allow you to repay the debt on time and in full, it is still recommended to resort to rescue measures, including trying to arrange a restructuring. Subsequently, if your financial situation improves, early payments will help reduce the amount of interest charges.

Video: Application for loan restructuring - legal advice

If there is a noticeable drop in income and frequent late payments on the loan, you can get out of the situation by changing the terms of the loan.

In the banking industry, this concept is called loan debt restructuring.

What it is and what features there are in changing the terms of a loan agreement will be discussed in this article.

Loan restructuring is a change in the clauses of the current loan agreement to reduce the burden on the borrower who is in a difficult financial situation. Such changes include deferment of debt, extension of loan repayment terms, change of currency, revision of interest rates and other measures.

However, not all banks willingly agree to provide such a concession to the client. To increase the chances of success, anyone who wants to change the terms of their loan needs to know under what conditions debt restructuring is possible, what methods of convincing the bank are most effective and what pitfalls can be encountered in this matter.

To begin with, let us once again draw your attention to the fact that debt restructuring is not its actual reduction, but only a revision of the terms of its repayment. It is possible to obtain permission to change the terms of a loan agreement in many cases, because the bank is also interested in returning its funds and making a profit, and is ready to wait a little longer than originally agreed.

Typically, increasing the repayment period of a loan debt entails an increase in debt, but thanks to changed interest rates and longer payments, the burden for the borrower does not seem as overwhelming as before.

Why is restructuring needed?

As experts advise, you should contact the bank with a request to restructure your loan debt immediately after you feel that debt payments in the current or next month will become an impossible task.

The most obvious examples of when and why loan restructuring is needed: dismissal of a person from work or his going on long-term sick leave. In such cases, it becomes clear that in the near future there will be problems with money in the family budget, so it is worth contacting the bank that the conditions for repaying your debt have been changed. There is nothing shameful in this: bank employees are accustomed to such customer requests and this is a common thing for them. The main thing is to have time to submit an application before the loan is overdue - this increases the chances of debt restructuring.

By reducing your loan burden, you can solve several impending problems at once:

Do not add a “dark spot” to your credit history.
Avoid litigation in court, which will put an end to your credit history.
Preserve personal property from foreclosure.
Honestly return the entire loan amount within the new terms.

Banks themselves are largely interested in restructuring clients’ credit debts, as this allows them to reduce the number of problem borrowers who have incorrectly calculated their financial capabilities.

Banks have a list of groups of clients whose credit debts can be restructured. These include:

Employees laid off due to company closure or layoffs.
Employees who have been officially notified by their employer of a salary reduction.
Individual entrepreneurs whose business has suffered significant losses.
Owners of foreign currency loans affected by devaluation.
Clients affected by a major accident or natural disaster.

Please note that belonging to any category of clients must be confirmed with documents!

How to restructure loan debt

Registration of credit debt restructuring occurs in several stages:

Filling out a questionnaire according to the form issued by the bank. It must contain information about the loan, monthly payments, and the reason for the need for debt restructuring. You also need to inform the banking organization about your income and expenses, and indicate your available property. If you need to restructure your mortgage, the bank will ask you to provide documents for the property.
Submitting the completed questionnaire to the loan debt department.
Meeting with the bank manager. The employee will ask you to repeat everything that is written in the questionnaire, after which he will help you choose the appropriate debt restructuring option.
Write an application and attach documents to it (loan agreement, copy of passport, certificates indicating changes in income).
If the bank has approved the restructuring of the loan debt, then a new agreement is drawn up, which specifies new lending conditions.

Before the final signing of the agreement, be sure to check that the previous agreement has been closed and that the new payment terms are suitable for you. If the bank insists that you first sign a new agreement and only then look at the payment schedule, you should not agree. Always ask for the entire list of documents at once!

If you receive a refusal to restructure your loan debt, ask the bank to do so in writing. This step helps in case of further proceedings in court. Your clear desire to pay the debt and the bank’s confirmed actions aimed at preventing this may become the reason why the court will oblige the banking organization to reconsider the decision.

What restructuring programs are there?

Knowing the features of different restructuring programs will help you choose the appropriate option yourself, and not rely only on the opinion of a bank employee.

Method No. 1. Extension of the loan agreement

This method involves an increase in the loan term and a proportional increase in monthly installments. If there were penalties, they will also be distributed evenly across months. Typically, the maximum extension period for a loan agreement does not exceed the initially maximum allowable loan period in the organization. For example, if a consumer loan can be taken out for a period of no more than 5 years, then when you sign an agreement for 3 years and subsequent request for restructuring, you will only be able to extend the term for 2 years.

Example from life:

A man took out a loan in the amount of 200,000 rubles for a period of 2 years and at 27% per annum. The amount of monthly payments is almost 11,000 rubles, and the overpayment would be 61,000 rubles. After 6 months, he was fired from his job, he was unable to continue repaying the loan under such conditions, and decided to apply for debt restructuring. In six months, he was able to repay only 10,000 rubles of the principal debt. The bank offered the client to roll over the remaining 190,000 rubles for 1 year without deferment. It turned out to be 8,700 rubles per month, which is already better, but the total overpayment will be 74,000 rubles.

Method No. 2. Credit holidays

This method is a deferment of the payment of the principal debt for a certain period (1-24 months). During this period, the client pays only interest on the debt.

For the borrower, this is the most unfavorable option, since after the deferment everything returns to its place (however, the overpayment increases, since it is increased for the entire extended loan term) and it turns out that the person gives the credit institution one or more additional interest payments. Experts advise using this restructuring system if you are confident that you will soon find a good job or grow your business - then this will be a justified step.

Example from life:

The client took out a small loan from Sberbank, but the monthly payments are still significant for him. Before the New Year, the client receives an SMS message: “For just 1,000 rubles, you can defer payments for 1 month, and the total loan term will also increase by only 1 month.” A person decides to use it to buy gifts for his family for the holiday. A specialist at the bank assured that the total overpayment would increase, but only slightly - the agreement was signed. Only then was the client allowed to look at the payment schedule, which indicated that the total overpayment had increased by 20,800 rubles. This is an extremely unfavorable deal for the client, however, there is no way to cancel it - the contract has been signed.

Method No. 3. Reduction of interest under the agreement

This method is used in rare cases. For example, during a strong reduction in the refinancing rate by the Central Bank. Allowed to be used only by borrowers who have defaulted on their loan for the first time. Banks usually offer this type of restructuring to people who have taken out a mortgage loan.

Example from life:

The person has been paying off his mortgage since 2014, the interest rate is 13.75%. In August 2017, I decided to apply to the bank for a rate reduction. The application was considered for 40 days, but in the end, after several disputes, the rate was reduced to 12.5%. They reported that this bank does not lower the rate below 12%, so we can say that the result is good.

Method number 4. Replacing loan currency

This method of restructuring is relevant for those who repay a loan during a period of currency devaluation. For example, a similar time occurred in the period 2014-2015, when holders of mortgages in foreign currency received a loan burden that was almost twice as high.

For a credit institution, changing a loan in foreign currency to Russian rubles is unprofitable, so the decision to change the currency usually comes from the bank’s management, and this should be influenced by serious external factors (for example, the same crisis of 2014-2015).

Method No. 5. Write-off of penalties

With this option, all fines and penalties can be written off from the client. To do this, it is necessary to provide compelling reasons for late loan payments, or for the court to declare the individual bankrupt. If the bank decides that the client will be able to pay the remaining debt without existing fines and penalties, then they can be written off. However, the most common solution is to install the fine, especially in the case of a prolonged contract.

Example from life:

The client had arrears with Sberbank since 2016 because he was hospitalized and a lot of money was spent on an expensive operation. In December, I managed to come to the bank and submit an application for restructuring the loan agreement. Being an informed person, the client immediately asked to write off the penalty and take the next payments into account as overdue payments. The bank approved the application in March. It was decided to write off the fines; you only need to pay interest for the “use of money” for the last six months (in addition to the main debt and current interest, of course).

Method number 6. Combination of several methods

In some cases, the bank may use several restructuring methods. The extension can be combined with the write-off of penalties, and the change in currency can be combined with a “credit holiday”. This is a non-standard restructuring solution, and is reached as a result of negotiations between the bank and the borrower.

Example from life:

At the age of 55, the client decided to take out a consumer loan, but soon his house was flooded and he had to move to a rented apartment. Because of this, paying monthly payments became impossible, and this continued for 3 months. The bank accepted the client’s position and did not apply penalties, and also extended the term of the loan with only interest paid for 6 months. After this time, the person improved his affairs and was able to continue to repay the loan, albeit 1,300 rubles a month more.

Method No. 7. With the help of government support

This method is used to help borrowers with a mortgage loan who are on the verge of financial collapse.

For example, according to the mortgage restructuring program from the Agency for Housing Mortgage Lending, operating from 2016 to 2017, the interest rate was reduced to 12%. The state made an additional payment to the bank for the borrower in the amount of 10% or more of the loan amount, but not more than 600,000 rubles.

Example from life:

In January, the client submitted an application to restructure the loan agreement under the AHML program. At the beginning of March, the bank manager called and said that the organization was ready to write off 20% of the debt (almost 200,000 rubles). To do this, you just needed to bring a certificate from Rosreestr, original personal and apartment documents. One caveat - it was necessary to pay a tax to the state for receiving financial benefits.

How and which bank to choose

The restructuring procedure can be done at the bank where the loan agreement was originally signed. The credit institution has the right to consider the terms of the agreement in a different version at its discretion. When choosing which bank to contact, it is better to immediately clarify what changes can be made during the restructuring and the validity of the loan agreement as a whole.

But you can contact another bank if they offer more favorable conditions.

The bank you contact pays off your debt to another bank and signs a new loan agreement with you with more favorable conditions for you.

Top 6 banks where you can restructure debt

What documents are needed

First you need to draw up an application for restructuring. The reasons for revising the terms of the loan must be supported by the following documents:

Certificate of income.
A work record book indicating the fact of dismissal.
Documents confirming the client's incapacity.
Child's birth certificate.
Certificate of family composition.
Consent of the husband or wife to enter the terms of the mortgage loan.
Other documents confirming the decrease in the borrower's solvency.

Naturally, not all of these documents must be in your hands to approve the restructuring. Their list varies depending on your reasons for decreased solvency.

Restructuring a loan agreement is unprofitable for the borrower, because in most cases the amount of overpayment increases. However, if you find yourself in a situation where you cannot repay the debt on time, then you should seriously think about revising the terms of the loan, even with a small overpayment.

It is very difficult to predict financial problems for many years to come. And in some situations it becomes problematic to repay the loan without outside help. And there is no need to fall behind on payments - you can apply for loan restructuring. But what is it, how is it formalized and how is it useful for a potential debtor? And why is loan restructuring for an individual the best way out of the situation? Let's figure it out.

Debt restructuring is a way to solve problems with a creditor without resorting to late payments and adding a “minus” to your credit history. Restructuring can be resorted to when the borrower does not have the means or ability to independently fulfill the obligations assumed when concluding an agreement with the bank. Restructuring means changing the terms of the loan to ease the burden on the client.

Important! If you understand that you cannot cope with your loans, then it is better to immediately apply for restructuring. Because if there are delays, there will be no loyalty on the part of the bank - it will see you as a debtor, and not as a client who can be helped.

Restructuring benefits both the payer and the creditor. The first receives easier conditions for payments, which can be very important if the financial situation worsens. But how does extending the payment period benefit the bank? Firstly, he will not lose money on a bad loan, which is usually written off with corresponding losses if the debtor declares himself bankrupt. Secondly, when changing credit conditions, you can play everything in your favor - for example, increase the interest rate, which will ultimately lead to greater profits.

Unfortunately, for foreign currency loans, restructuring and conversion into rubles are almost never used. This is not beneficial for banks, and the state was unable to pass the corresponding bill. So you will have to overpay until the exchange rate to the ruble is favorable.

What loans can be restructured

Any loan can be used for restructuring, even if it is very large. This allows banks and borrowers not to be left at a loss and not get into trouble. The situation can be alleviated with both regular consumer loans and targeted loans.

Most often, clients apply for restructuring of mortgage loans because they are larger than others and are designed for long-term repayment. And in the context of economic problems, it is impossible to predict whether the financial situation will deteriorate in 10-20 years.

Required documents

To get the opportunity for restructuring, you need to contact the bank in time with the relevant documents. It is important to immediately collect all the necessary pieces of paper (originals and copies) and attach them to the future application. What you will need first:

Confirmation of unfavorable financial status. For example, a certificate of incapacity for work or a certificate of income.
Loan agreement.
A statement showing previous payments and the absence of debts (if you are not yet past due).
Passport or (preferably) other identification document.
If the loan is a mortgage, you will also have to attach an extract from the state register of rights, which indicates that the housing purchased with a mortgage is the only one.

This is the required minimum. Depending on the type of loan, situation and current situation of the borrower, the bank may ask for additional papers of various types.

Who can restructure loan debts

There are several options for restructuring credit debt for an individual. This can be done either directly by the bank where the loan was taken or by the state. But the latter is not the best option, since it is associated with certain difficulties and problems in the future.

The creditor himself

The bank can provide loan restructuring if the client has problems with repayment. For example, he lost his job or an urgent expense item appeared (that is, illness or something like that). In such a situation, the creditor can meet the potential debtor halfway and change the terms of the loan. That is, increase the payment period and, accordingly, reduce the amount of monthly contributions. But accordingly, as the debt increases, the total amount will rise. In addition, sometimes, along with the lightening of the load, interest rates also rise.

If you mention during negotiations with the bank that if the restructuring is rejected, you will begin bankruptcy proceedings, then the conditions can be softened a little. But it is better to resort to such an argument in extreme cases - perhaps it will be possible to reach an agreement without threats.

State

When filing bankruptcy for an individual, it is also possible to achieve restructuring through the state. In this case, you will still have to pay off the debts, but on different terms - the loan rate will be set by the Central Bank (which is noticeably more profitable than offers from banks), and the term will be 36 months.

Currently, the bankruptcy procedure is subject to the Federal Law No. 127, which states that the loan can be restructured. And only if the debtor fails to pay the money within the established period, the sale of the property begins.

It is worth pursuing restructuring through the state when there are no other options left. Because bankruptcy of individuals is associated with certain problems in the future - at least for some time it will be impossible to travel abroad and buy/sell property. All accounts and cards will also be blocked, so you will have to say goodbye to non-cash payments.

However, if these inconveniences are not significant for the debtor, then you can take advantage of the recognition of your own insolvency and not pay debts on the bank’s terms. Although the latter often makes concessions if he hears about bankruptcy.

Loan debt restructuring - sample application

You can download a sample application from our website:

How to restructure the debts of individuals in 2018

Restructuring a loan for an individual requires some effort and, to some extent, luck. You will have to collect the necessary papers and meet certain parameters by which the bank can decide whether to show loyalty.

Features for individuals

No bank will just formalize a change in loan terms. There are some nuances that should be taken into account when trying to alleviate the financial burden for individuals:

Not all banks are ready to make concessions. Especially if there have been arrears on this loan before or if there are problems with your credit history. Ideally, a candidate for restructuring is an ordinary person who has never in his life made even occasional delays, but who suddenly finds himself unemployed or disabled. But even these are sometimes refused.
If, when registering a restructuring if fake documents are detected (for example, a fake certificate of dismissal or disability) - you can say goodbye to the bank’s loyal attitude forever.
When a resignation letter was written at one's own request(even if in fact this is not the case), then you won’t be able to get away with just a work book during restructuring. You will have to register with the labor exchange or enter into an agreement with a private recruitment agency and provide the relevant documents.
If you restructure a loan through bankruptcy proceedings, then you will still have to have some source of income that will allow you to repay the loan in 36 months or at least enter the previous payment schedule, but at the same time ensure your own existence at least at a minimum level. Otherwise, it will not be possible to launch a restructuring - you will have to sell off the property.

When completing such a procedure, the bank or the state will have to develop a new repayment schedule. When compiling it, not only new interest rates or deadlines for depositing money are taken into account, but also the current state of the client. That is, the lender will try to take into account the level of income and other things. Naturally, not without benefit for yourself.

What is important for debt restructuring

Unfortunately, the restructuring of loans without state participation is practically not indicated in the law. There are no corresponding articles in the codes of the Russian Federation. Therefore, everything will depend only on the situation - how large the loan is for you, how loyal the bank is to clients, whether you are already behind on payments, and so on.

Therefore, it is necessary:

Immediately after financial problems arise, contact the bank if it is clear that you will not be able to pay on your own.
Willingly engage in dialogue with the creditor, offer options, and make efforts to find funds for payment.
If possible, repay payments without allowing debt to arise if the bank has not made a decision on restructuring before the date of the next installment.
Try to negotiate on mutually beneficial terms in case the bank decides to refuse restructuring altogether or offer worse conditions.

The main thing is to show through your actions and appearance that you are ready to cooperate with the lender.

Then there is a chance that he will decide not to create problems for you and arrange a restructuring. Moreover, it is also beneficial for him not to lose money.

How to achieve a change in financial burden

There are no uniform instructions for restructuring loans in various banks. This is a strictly individual process, which is unique for each bank and each lender. It differs depending on the situation, the size of the loan, and so on. We can only give a general vector of movement towards getting rid of problems:

Collect all necessary documents.
Before delays begin, submit an application with a package of documents about your current financial situation.
Wait for the bank’s response and, if necessary, begin negotiations.
Fulfill the bank's requirements (for example, join the labor exchange).
Achieve a new payment schedule with different amounts and begin to gradually repay the loan in a new way.

It is worth remembering that in addition to restructuring, you can take advantage of other opportunities. For example, agreeing with the bank on a credit holiday for an individual - this will help save up money or have time to find a new job if you were fired from your old one. Or you can enter into a new loan agreement for refinancing - in this case, you can not only increase the term, but also reduce the annual rate, if you’re lucky. In addition, refinancing allows you to change banks.

Perhaps five years ago no one had even heard of this, but now all the television news and newspaper headlines talk about this banking “step forward”. What is loan debt restructuring, in what cases can a borrower use it, why bank employees may refuse to carry out this procedure, and what alternatives are there - we will talk about all this in detail in this article.

Concept of loan debt restructuring

When you take out a loan from any bank (or credit institution), you sign a document that clearly states all the conditions for its return:

Monthly payments;
Timing;
Interest on the use of credit funds;
Penalty for late payment of repayment;
Penalties for failure to pay the loan for more than a month.

When you begin to violate these conditions, in particular, you are late with payment or have stopped repaying your loan altogether, your debt does not decrease, but on the contrary, it grows rapidly, dragging you into debt. The actions of banking structures in such cases are almost standard: if they cannot reason with the client and force him to pay the loan, the banks resell him or go to court. The first bring many negative aspects into the life of a former bank client; in the second case, the debtor will have to get acquainted with the bailiffs, and as a result, lose property.

And so that these two options for solving the problem of paying off a loan do not burst into your life, a procedure for restructuring your monetary debt was invented. Moreover, of all the possible options, this is probably the cheapest way to solve this problem.

The essence of restructuring

Credit debt restructuring is a set of actions on the part of the creditor bank aimed at changing the terms of the agreement, caused by the need to repay the loan issued by it. The main purpose of this procedure is to facilitate and speed up the process of repaying the loan debt on the part of the client.

Types of restructuring:

Loan extension;
Reducing the interest rate;
Credit holidays;
Debt write-off;
Refinancing;

As for the types of loans themselves, most often the bank is asked to restructure a mortgage loan, and less often - just a consumer loan.

In what cases is the procedure performed?

Significant reasons why a bank may agree to change the terms of your loan agreement:

You have been laid off;
Change in salary level downwards;
Pregnancy or maternity leave;
Illness, surgery, disability;
You or a family member on whose income you were counting are drafted into the army;
Imprisonment (the application is written by the relatives of the debtor);
Death and transfer of debt to heirs;
Ruble devaluation.

What is the disadvantage of this procedure? The end result may be that the total amount of loan payments will still increase. This is probably why Sberbank also became more willing to agree to carry out this procedure, because they definitely would not be at a loss. But if for some reason the creditor does not make concessions and does not want to restructure the debt, you can contact other banks, for example VTB 24, with a request to refinance your loan.

We have figured out what credit debt restructuring is, it’s time to consider its options and procedure.

Credit holidays

The so-called credit holidays are a deferment of payments. It can be issued, for example, in the case of long-term hospitalization - the client simply will not be able to work and pay loans on time, or business trips abroad if the client is not confident that one of his relatives will fulfill the conditions for repaying his credit debt. But much more often they are asked to formalize this type of restructuring due to life difficulties encountered by the client.

Here, as a rule, each case is considered individually, and attention is paid to the client’s credit history, whether he has a guarantor and other points. The term of credit holidays is usually short - up to six months, less often a year or two. Moreover, cases when the owner of the debt is completely exempt from payment for this period is also not a frequent occurrence. It is more common to switch to partial loan repayment. Example: within the agreed period, the client pays exclusively the principal amount of the loan, or repays the debt only on interest already accrued.

Prolongation

Extending the term for loan payments (extension) significantly increases the amount of cash payments itself, but at the cost of reducing monthly payments. This method is well suited for people who have lost their job or changed their job with a loss of salary. Also, this type of loan restructuring is suitable for young mothers or single mothers.

Rate change

Changing the interest rate is statistically the least used option. Since this is the bank’s main income and it does not benefit from such losses. But in the case of mortgage debt, this becomes the best solution for both parties.

Refinancing

Refinancing your loan with another bank is possible only if your bank did not meet you halfway or its terms of changes in the loan agreement do not suit you, but thanks to an excellent credit history, you can count on restructuring the debt under the current loan agreement and obtaining a new targeted loan. In fact, the money you owe is transferred by the new bank to the previous borrower.

Write-off

It is worth remembering that some banks operate a “discount program,” which is a procedure for writing off debt. It can be requested if suddenly, after the client has not paid for a long time and he has accumulated an impressive debt on the loan and interest, and he (or his heirs) decided to pay it off in one fell swoop. In such cases, negotiations are held with the bank to write off part of the debt. Depending on the bank, the economic situation, the size of the loan debt and the client’s willingness to pay in a one-time payment, this can be 50-70% of the debt amount.

How to apply for debt restructuring

In the process of debt arising, the algorithm of actions of any bank is the same. First, employees notify the client about the need to repay their credit debt (phone call, SMS notification, recommended letters). This can happen for 4-6 months, after which - if payments have not been resumed - the bank itself may invite the client to reconsider the agreement, or may begin the process of transferring the case to court (or sell the debt to collectors). Therefore, you should not wait, but it is better to deal with this issue yourself.

So, in order to receive the desired relief for the successful and timely fulfillment of their credit obligations, without spoiling their loan, the debtor needs to write a letter to the bank, or contact a credit specialist on the spot.

After listening to you and considering your evidence, the bank employee will offer to write a statement where you will need to describe in detail the reasons for your request to restructure the loan debt. The bank always provides a sample application, although you don’t have to worry too much about meeting any legal requirements - a free form of drawing up this application is allowed and they will tell you how to do it.

The main thing to indicate in the application:

Data on your loan agreement (number, date of preparation);
Loan amount (in combination with insurance and various services);
The amount of the loan already repaid;
Loan balance;
Last payment date;
Date of first overdue payment;
The reasons that influenced the appearance of debt;
How exactly do you want to change the terms of the loan agreement: changing the monthly payment amount, reducing the interest rate, prolongation (increasing the term of the agreement), deferment of payments, debt write-off;
It is also worth mentioning that you are a depositor or holder of a salary/social card in this bank.

The application is always completed in two copies. In addition to the application, you will need to submit all receipts for payments already made and written evidence of the reasons for late loan payments described in it:

Certificate from a new place of work;
Certificate from the labor exchange;
Certificate stating that you are registered with the antenatal clinic;
Certificate that you are on maternity leave;
Work book with a record of dismissal;
Documents and certificates from the hospital confirming illness or surgery;
The heirs provide confirmation of the death of the debtor, and evidence that they cannot, due to circumstances, follow the terms of the agreement;
Written refusal of the guarantor to fulfill his obligations, etc.

The bank's decision will be made after a thorough check of the data in the process of considering the application and your credit history, of which you will be notified in a way convenient for you: by phone, by registered letter or by email. As a rule, this takes from 2 days to one working week. Based on the decision made, you arrange a new meeting with representatives of the bank, where you discuss the proposed option for restructuring your loan debt and sign a new agreement.

Restructuring of debt on a loan in an MFO

Microfinance organizations are not as willing to restructure the debt of their clients as banking institutions are. The thing is that we are talking about different amounts.

As a rule, people turn to microfinance organizations for small loan amounts, and the terms for their repayment are, accordingly, much shorter. But if your circumstances of debt to this lender are really significant, or you took out long-term loans of funds, then there is a chance for a positive decision. Except for those cases when you have entered into a deal with a Microcredit Company (MCC): strict work requirements and a simplified business scheme deprive them of such an opportunity.

The procedure for requesting debt restructuring on a loan in an MFO is no different from that which would take place in a state bank. Compose an application according to the sample, indicate in it all the data on the loan, the reasons for the debt and ways to solve the problem. Documents confirming your words about insolvency are attached to the application. But be prepared that you may receive a refusal from MFO representatives without explanation. In this case, you will have to contact the financial ombudsman, who will tell you how to challenge this decision and resolve the conflict between the creditor and the debtor out of court.

Restructuring of a legal entity's credit debt

Above we discussed the procedure for revising a loan agreement between a bank and an individual, but this procedure is also available for organizations. Naturally, there are a number of subtleties between legal entities in the design of the restructuring procedure. Not the least role in this matter is played by the “business reputation” of the company that requested a review of the terms of the loan.

It is not enough for a legal entity to justify its temporary financial difficulties, since we are often talking about very large cash loans. The company needs to convince its lender that in the future all conditions under the loan agreement will be met and full settlement with the bank will be made.

The new agreement between the creditor bank and the debtor organization not only provides relief regarding the repayment of credit debt, but also stipulates ways to solve the debtor’s financial problems. In such agreements there is always a clause “special conditions”, under which the creditor can unilaterally terminate this agreement.

After a new agreement on debt restructuring is signed by both parties (with the obligatory clarification of all details, TIN, OGRN, current accounts), it is considered a legal replacement for the primary loan agreement to a legal entity. This essentially new contract will be a powerful argument if one of the parties decides to go to court. As a rule, we are talking about cases where, after the restructuring of the primary debt, there is a systematic violation of the terms of the new agreement between the bank and the borrower.

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