How to defer payments on the loan? - News about real estate, Kiev, Kyiv region. Real Estate In Ukraine
The cost of Christmas travel, meal and gifts can sometimes jeopardize the planned repayment of the loan. What if the money to make another loan payment is just not enough? -- You can ask the Bank "vacation credit" to apply for a deferred payment loan (for a year or two )Dentist Anton Mikhailichenko had long been planning to take a loan to buy a car. In the cabin, where he decided to buy a car, told him about the campaign, which runs in conjunction with one of the major banks. Was she that when applying for a loan, a borrower was granted the right of first six months to repay the loan.The proposal by Anton seemed interesting, and he agreed. Already signed all the necessary papers, "happy" owner learned that he is exempt only from the repayment of the loan and not the entire amount of the payment (with interest). Instead of $550 per month for six months Anton paid the Bank a total of $216. All is good, but because the amount of debt in this period is not reduced, the total overpayment on the loan increased from 33% to 36%, or $650. In the end, that seemed to be a favorable loan with a delay brought by the borrower some disappointment.So with bankers advertising "vacation credit", you need to be especially careful (similar programs are willing to offer "Finance and Credit", Ukrsotsbank, Raiffeisen Bank Aval", "arcade", Ukreximbank, Kreditprombank). They are not a charity, right? :) The more the customer is staying "in the credit, the greater, in the end, it turns out the total overpayment on the loan.As found "Money", the annual deferral increases the amount of overpayment on car loans on average 10--15%, and mortgage loans -- 4--5%. Ultimately, this "translates" not in a thousand dollars...Besides, most banks will allow you to only delay the repayment of the loan, thus requiring careful calculation of accrued interest. Most of the banks allow a transfer payment only in the beginning of the loan period and only if the processing of the loan with a large initial payment-from 10% to 40% of the cost of purchased property.Those few lenders that allow deferral convenient for the borrower the moment of the loan term limit "breather" period from 1 to 6 months and only occasionally allowed to postpone the payment of part of the loan on the last month of service. So whether or not to agree to the proposals of the bankers to take a break in payment of the loan, and under what circumstances such "indulgences" can be beneficial?Who will fit?Any financer know the rule -- the longer the borrower uses the money, the more expensive they cost him. Therefore, extension of credit or deferred payment make credit more expensive. Always.And yet, despite this, the "vacation credit" can be beneficial to the borrower. For example, the timeout for the payment of the mortgage loan immediately after the purchase of housing will allow them to acquire furniture or to make repairs, without resorting to loans for these purposes. If such additional costs are inevitable initially, you should think about how to look for a loan with deferred payments.For example, deferred for one year on payment of the body of a ten year loan of $50 thousand to under 12% annual increase total overpayment of $3 thousand But if you do not do delay, and to take for repairing loan, for example, $5 thousand to four years under normal for consumer credit of 30% per annum, will have to pay $3,75 million And, in addition, approximately $2 thousand will increase the maximum annual payment.Favorable deferment and those who buy housing in the primary market and had some time to rent an apartment -- until then, until the construction site. Moreover, some banks are willing to grant a respite until the time of delivery of object in operation, which often is delayed. So for those who have serious expenses after the mortgage is pre-plan your family budget and count that may be more profitable -- deferral or making additional loans.Definitely worth to go into a "credit vacation" and when the money to make another loan payment is just not enough. In this case, the transfer payment will cost is still cheaper than making a new loan to repay the old one.Entering into the loan with a deferment, you should care about the possibility of "fasting days" was the borrower not only once and in the beginning of the term, and at least a few times during the entire period of the loan. For example, UkrSibbank in the mortgage program "the hour" offers the borrower the opportunity twice during the entire loan period to take a "vacation credit" of 1 to 6 months. During this period, the borrower is not required to pay anything at all -- neither the principal nor the interest thereon. These amounts are transferred and are divided into the following periods.Profitable option and transfer the debt in recent months -- in this case, the overpayment will be the same as in the standard repayment scheme. For example, "OTP Bank" allows up to 30% of the amount of the body to transfer car loan to repay the last month of using the loan. If the borrower is unable to repay the outstanding balance immediately, he may ask about the extension of the period of the loan for a further three years.When choosing a Bank, you should calculate how much delay will increase the overpayment on the loan and what amount of funds would be released by the. For example, reduce the current costs of the loan (almost twice) only if loans.Upon payment of the mortgage loan so serious "unloading" is impossible. Because at the beginning of the term of the mortgage loan payments for 70--80% of the accrued interest. So vacation credit will reduce current payments no more than 30%.Do not rushAnd yet again: despite the tempting offers of bankers, the best way to increase the cost of credit than the delay. :) Especially if you arrange it at the beginning of the loan, when the loan amount and interest will be greatest. If you ask installments in the middle or at the end of the loan term, the loss of the borrower can be not so significant. For example, if you reduce the outstanding car loan up to $10 million and to make installments for 6 months, pay the Bank for the remaining two years will have only a few hundred dollars.And finally, most importantly: do not chase the stock, during which banks offer loans with deferral. Because "vacation credit" ordinary borrower (especially mortgage) may obtain at any time! If the borrower suddenly deteriorate the financial situation, he should not despair. You can contact your credit Manager with a request to reformat the payment schedule and, if the loan were made accurately, the Bank will most likely be sent towards the customer.The best option is the extension of the term loans (and, accordingly, reduction in size of current payments), but not a temporary exemption from the payment of principal. Indeed, in the first case, the borrower continues to steadily pay off the Bank, and gradually reducing the amount of debt and accrued interest.How much give?The longest "vacation credit" - in three years - in Ukraine offers the Bank "Finance and Credit". Other banks limit the period of deferred payments 6-24 months, not more (see table).Sometimes the program delays are offered in the framework of the shares and assume reduced by 0.5--1% rate on the loan (as, for example, Ukrsotsbank and Kreditprombank). However, most often rates on loans "deferred" differ little from those proposed in the standard loans.Total:If there is no certainty that money to pay the loan will always miss and with a vengeance, it is better to choose a loan with the possibility of deferred payment.