The expert told what to do in case of difficulties with repaying a loan

During the pandemic, many borrowers were faced with the difficulty or even the inability to repay loans. Expert of the Ministry of Finance’s project on financial literacy Tatyana Kirik told RIA Novosti about the steps that could lead to a relief of the credit burden.

“First you need to check the terms of the loan agreement and the insurance contract if it was. Perhaps the current situation is an insurance case. If there is no insurance or no insurance case, then you should consider options for restructuring and refinancing the loan, and find out if credit is possible for you vacation, “said Kirik.

The expert noted that neither restructuring nor credit holidays reduce the number of payments. The main debt and accrued interest remain the same, but loan repayments during the restructuring will be extended for a longer period, or in the case of credit vacations, time is given to work on debt without payments or with lower repayment amounts.

“If you have lost the opportunity to repay a loan, you must inform your credit institution as soon as possible so that there is no delay and fines are accrued,” the expert emphasized.

“Refinancing of credit debt is essentially a refinancing on new conditions. This can reduce the interest on the loan, combine all loans into one for convenience. When the financial situation improves, you can make full or partial early repayment of debt to reduce the total overpayment. An obvious advantage is that a new loan term is selected so that payments become feasible, ” the expert added.

Credit holidays – full or partial deferral of a monthly payment, which the bank provides to the borrower for some time.

During the credit holidays, the bank will also not be able to charge fines and penalties, demand early repayments, foreclose on the subject of pledge or mortgage, and forward the claim to the guarantor of the loan.

“There are three options for a loan vacation at the bank: full deferred payment; partial deferred payment; recalculation of the loan amount due to a change in the loan currency (for example, dollar to foreign currency and vice versa), and the maximum loan vacation period is 6 months,” Kirik said.

The interlocutor of the agency noted that now credit holidays are provided for borrowers affected by the coronavirus, not only for mortgages but also for ordinary consumer loans.

This category includes patients who are in quarantine, partially losing their income, and also experiencing temporary difficulties in repaying regular loan payments due to the situation caused by the spread of coronavirus.