Refinancing loans have become an indispensable part of life. Many people have two or more credits at some time in their lives, which is an extremely expensive sport. Each loan is subject to a processing fee.
In addition, there are notary fees, estimates, intercalary interest charges, and various notes and the like. When the line is drawn at the end of the month, the costs can reach up to several thousand kuna depending on the loan amount. To address these issues, financial institutions have launched specially designed refinancing loans.
Refinancing loans are often mixed with reprogramming loans. Refinancing loans include closing down all debt and underwriting everything under new credit, while rescheduling loans are for clients who are unable to repay their debts due to a sudden loss of business or death. The credit obligations that are properly settled go into refinancing and those that are not repaid regularly go into reprogramming.
Refinancing Loans: A single loan combines all debts
Refinancing loans are a special type of loan designed to close existing loans, with one new loan. The goal is to close more expensive loans with new, more favorable conditions. The various fees, charges and interest payable to reflect different loans are combined into one as soon as costs are reduced. Refinancing loans are suitable for closing cash loans, credit card debt and current account overdrafts.
Refinancing Loans: Assigned loans that keep finances under control
Refinancing loans are classified as earmarked loans. As the name implies, these are loans that have a specific purpose and cannot be used for anything else. The goal is to use the money for a specific purpose, thus reducing the possibility that the money will be spent on things other than what it was intended for. This measure also reduces the chance of the client making new debts.
The money is paid into the current account of the loan seeker, who is then obliged to close the debts and prove that he has done the same. Only about a third can be paid in cash, but it depends on the financial institution itself. Some banks, in addition to the possibility of non-purpose cash payments, also offer the possibility of refinancing a borrower’s credit obligations. Which gives a new dimension to refinancing loans.
Refinancing loans are available at banks and credit houses. They do not require guarantors or co-debtors, but they do require regular income. Banks also make sure that clients are employed for an indefinite period of time because their fixed-term contract poses too much risk. Credit houses are not so rigorous and rely on the financial tidiness of clients.