Loan refinancing is a targeted program for both individuals and legal entities, aimed at refinancing a car loan on better terms. Simply put, thanks to refinancing, you can get a new car loan at a lower percentage.
What should the borrower do if, after a certain amount of time, interest rates on loans have decreased by several percent, and the car loan has to be paid on the same terms?
Refinancing a loan is what comes to the aid of every borrower. Refinancing is beneficial primarily to the category of citizens who took out a loan with one passport, without a down payment.
Refinancing methods
You can refinance a car loan in two ways. In the first case, it is proposed to exchange a vehicle, issued on credit, for a new car. Another method involves changing the loan itself, that is, changing the loan term and interest rate in your own or third-party bank.
The benefits of refinancing a car loan
Recently, there have been major changes in the terms of car loans. This became noticeable in the decrease in the interest rate. As a result, car loans have become much more profitable. But what about those citizens who received a loan at an unfavorable interest rate?
Car loan refinancing is very actively used in the market. This loan product turned out to be in great demand. Many borrowers turn to bank branches and re-execute the loan agreement on more favorable terms.
For refinancing, the borrower must provide a passport, a certificate from the place of work and a copy of the work book. In addition, the borrower must provide a loan agreement and the details of the bank in which this car loan is issued.
Refinanced car insurance
Any car that is purchased on credit is subject to insurance under the CTP and CASCO program. The insurance policy must be concluded in favor of the bank. There are strict requirements for insurance conditions.
Borrower requirements for refinancing
The borrower can be individuals, legal entities and individual entrepreneurs. For legal entities, there is a prerequisite - the presence of a stable business that has been on the market for at least 18 months.
The borrower must have a positive credit history.
