The lending rates are still on the decline. Anyone who pays off an older loan quickly curses. Today, an identical loan would be much cheaper. A rescheduling would be a way to benefit from the favorable interest rates. However, it becomes a problem with negative Private credit. However, it is by no means impossible to get a loan for rescheduling despite Private credit. Here we would like to help you.
Loan for rescheduling despite Private credit: What does “rescheduling” mean?
In a rescheduling you take on a new loan and pay off the old loan completely. From now on you pay off the new loan. So you benefit from the low interest rates. However, there are a few things you need to look out for when rescheduling. Generally speaking: The debt restructuring must be really cheaper for you.
Therefore, the so-called prepayment penalty has to be considered first of all. This is a penalty. You have to pay them for the early repayment of the old loan. It is covered by law. If the old loan runs for a further 12 months or more, it will not exceed 1 percent of the balance. If the old loan lasts one year, the prepayment penalty is 0.5% of the balance. Caution: These limits do not apply to real estate loans. The prepayment penalty can be set freely by the bank.
Loan for rescheduling despite Private credit: Beware of maturity
But not only the early repayment penalty can make the loan more expensive and make rescheduling so pointless. You also have to pay attention to the terms. A loan can have lower interest rates but be more expensive. As an example, you pay 10,000 euros for one year at 3 percent interest. So you have to live with 300 euros interest costs. Or, you could take a 10,000 euro loan at 2 percent interest for 2 years. You pay 404 euros interest. The burden would be 104 euros higher. Accordingly, rescheduling makes no sense.
Loan for rescheduling despite Private credit: Why problems with the Private credit
One question you can justify with a loan for debt restructuring, despite Private credit: If a debt restructuring is cheaper, why are there any problems with the Private credit? After all, you reduce your debts. Basically, you will temporarily take out an additional loan. At this point, the bank does not yet know that you are planning a rescheduling. Debt rescheduling loans can also be very high. Accordingly, your credit rating is insufficient to justify lending.
Loan for rescheduling despite Private credit: How to convince the bank
The easiest way to get a loan for rescheduling despite Private credit from your bank. With house bank is meant the money house, where the previous loan exists. Share this with your plan. And give your legal agreement that the bank will carry out the debt restructuring automatically. Especially with significant savings, the money house should not cross. To secure the repayment finally.
For foreign banks, it gets a bit more complicated. These too should inform you about your plan. Luckily enough, this also means that you contractually assure that the new bank will do the debt restructuring itself. You will never have access to the funds. You can not use the money for a different purpose. Unfortunately, the new bank demands collateral or a guarantor for lending.