One option for resolving the situation is debt restructuring, which involves revising the terms of the loan agreement to reduce financial burden.
When should you seek to change your loan terms?
If you are facing financial difficulties, the bank may consider easing your repayment terms.
Possible reasons include: a decrease in income, job loss, serious health issues, acquiring a disability, maternity leave, military conscription, or unexpected events like a fire or theft of property.
It's important to contact the bank as soon as possible in these situations, as this increases your chances of avoiding penalties, legal disputes, and damage to your credit history.
How to submit a request for restructuring?
To apply, you need to submit a request to the bank within a month after the first missed payment.
Your request should state the reason for your financial difficulties and include supporting documents, such as proof of income or a medical certificate.
The bank will take up to two weeks to review your application, after which they will inform you of the options available.
What can the bank offer?
Depending on the situation and decision: Extension of the loan term, which lowers the monthly payment but increases the total interest paid; Reduction of the interest rate if economic conditions have changed; Payment deferral, allowing you to temporarily stop payments while interest continues to accrue; Waiving of fees and penalties if the bank agrees to such a decision; Changing the payment structure so that the principal is paid off first, followed by interest.
What to do if the bank denies your request?
If your request is denied, you may explore other solutions: submit a complaint to the banking ombudsman, consult a lawyer specializing in financial matters, or consider refinancing – a new loan with better terms to pay off the old one.