What is loan restructuring?
Posted: Tue Feb 18, 2025 8:52 am
Restructuring is the easing of the borrower's debt burden by adjusting the terms of an open loan. To do this, you do not need to close the previous loan and draw up a new one: the parties enter into an additional agreement to the current contract. Debt can be restructured in the following ways:
Reduce the interest rate. Usually, creditors agree to such a measure if, since the borrower took out the loan, the key rate has been reduced by the Central Bank of the Russian Federation.
Write off part of the interest already accrued. This allows you to reduce the total amount of debt.
Extend the loan term, thereby reducing the monthly payment.
Change the lending currency. Borrowers who have taken exit mobile number database out loans in foreign currencies often face exchange rate volatility, which is why payments in Russian rubles increase sharply and become unaffordable. Therefore, financial experts recommend taking out loans only in the currency in which clients receive income.
Provide the borrower with credit holidays. They are a deferment of payments for a period of up to 6 months. It can be used only once for one loan.
Use several of the above measures in combination.
For debt restructuring, the client's desire alone is not enough: the application for this financial procedure must be justified. As a rule, borrowers are forced to restructure their loans by financial difficulties: their occurrence must be proven to the creditor by attaching the relevant documents. The following circumstances are considered valid reasons:
A drop in income levels due to loss of or forced change to a low-paying job.
Temporary or complete loss of ability to work as a result of a developing disease or injury.
The appearance of new dependents in the family (birth of a child or registration of guardianship over a disabled relative).
A reduction in income due to the death of a close relative (such as a spouse).
Unforeseen increase in the amount of debt (if the loan was issued at a floating rate).
The bank needs some time to make a decision on changing the terms of the loan, so it is better to submit an application for debt restructuring in advance, before late payments occur.
Reduce the interest rate. Usually, creditors agree to such a measure if, since the borrower took out the loan, the key rate has been reduced by the Central Bank of the Russian Federation.
Write off part of the interest already accrued. This allows you to reduce the total amount of debt.
Extend the loan term, thereby reducing the monthly payment.
Change the lending currency. Borrowers who have taken exit mobile number database out loans in foreign currencies often face exchange rate volatility, which is why payments in Russian rubles increase sharply and become unaffordable. Therefore, financial experts recommend taking out loans only in the currency in which clients receive income.
Provide the borrower with credit holidays. They are a deferment of payments for a period of up to 6 months. It can be used only once for one loan.
Use several of the above measures in combination.
For debt restructuring, the client's desire alone is not enough: the application for this financial procedure must be justified. As a rule, borrowers are forced to restructure their loans by financial difficulties: their occurrence must be proven to the creditor by attaching the relevant documents. The following circumstances are considered valid reasons:
A drop in income levels due to loss of or forced change to a low-paying job.
Temporary or complete loss of ability to work as a result of a developing disease or injury.
The appearance of new dependents in the family (birth of a child or registration of guardianship over a disabled relative).
A reduction in income due to the death of a close relative (such as a spouse).
Unforeseen increase in the amount of debt (if the loan was issued at a floating rate).
The bank needs some time to make a decision on changing the terms of the loan, so it is better to submit an application for debt restructuring in advance, before late payments occur.