What to do if you can’t pay the loan. There is no way to pay the loan - what to do?

Today it is difficult to find a person who would not take out at least once: with the help of borrowed funds, not only housing or a car are purchased, but also almost all other expensive things, in addition, many take out loans for treatment and education. When a borrower contacts a bank, he expects that he will be able to calmly pay off his debt and no problems will arise.

Alas, this does not always happen: anyone can suddenly find themselves without a job, get injured, or lose their only source of income. If it is no longer possible to pay the loan, what should the borrower do in this situation?

You need to pay off the loan anyway!

The main rule for any borrower: it is necessary to solve the financial problem that has arisen as quickly as possible, and not wait until penalties for late payments are added to the main one. Difficulties in generating income rarely arise suddenly: if you have been warned about your upcoming dismissal, you need to immediately contact the bank and decide how to solve the problem.

From the very first delay, the debtor will be included in the “black list” of bank clients. A stain on your credit history will create great difficulties for obtaining further loans, and you may not be able to count on a large amount or a favorable interest rate. Credit history is checked by all banks, so you shouldn’t spoil your financial reputation.

If the borrower does not make contact, within several months the employees will call and demand repayment of the debt. If payments have not started, the debt will be transferred to Collectors most often use methods of psychological influence, which can be very unpleasant for the debtor, and you can forget about a quiet life.

Often, debt collectors resort to direct threats and also commit hooligan acts aimed at psychological impact. They may call the debtor, threaten to take the children away or harm them. In all such cases, you must immediately contact the prosecutor's office with a complaint of extortion. Debt collectors have no authority to do this and it would be a criminal offence.

The debt will have to be paid, but no one should threaten the peace and security of the debtor and his family members.

As a result, the case will be sent to court, and the debt will be collected through enforcement proceedings. To pay it, valuables can be sold, funds are debited from accounts, or money is deducted from salaries, and the amount of this deduction cannot exceed 50% per month. In all cases, it is better not to bring the matter to court, since the debtor will also have to pay legal costs.

Ways to solve the problem

If you can’t pay the loan, you can try to negotiate with the bank

As soon as a deterioration in the financial situation is expected, you need to contact the bank and, together with an employee, choose the optimal solution to the problem. In any bank, the debtor may be offered several of the most common options:

1. . In this case, the amount of debt is divided into smaller payments, and it will take longer to pay. For the bank, this is the most profitable solution, since as the payment period increases, the interest that the debtor will have to pay also increases. After restructuring, the payment amounts are significantly reduced, and the debtor must cope with new obligations. Since restructuring is an agreement between the bank and the client, it will not affect the credit history in any way.
2. (on-lending). If you received a loan at high interest rates, or the bank has a more favorable offer, you can refinance and thus reduce the size of your monthly payments. However, this is only a temporary solution: you will still have to pay the new debt, and in addition, you can only take out a new loan if you have a good credit history. This method is suitable for those who have several debts: it is much easier to pay off all debts by collecting them into one debt, and not have to remember different amounts and terms.
3. Credit holidays. This is called deferment of payments for a certain period, during which the borrower must pay only interest. This is beneficial to the bank: the borrower will pay small amounts every month, but the loan amount will not decrease. However, for the borrower this is often the only chance to cope with obligations and avoid delays.

To use any of these methods, it is advisable to contact the bank before the first notification of a late payment. The borrower must come to the branch and ask for one way or another to change the loan agreement. For a bank, this is an ordinary situation: usually there is a ready-made application form, and it will be considered fairly quickly.

In order for the bank to agree to defer payment, it is necessary to provide evidence of a valid reason. If the client cannot pay the debt due to, a copy will be required; if the reason for non-payment is illness, an extract from the medical history will be required. The application will be reviewed individually, after which a new loan agreement or an amended payment schedule will be drawn up.

The borrower’s task after restructuring or refinancing is to strictly comply with the new rules. Any deviation from the schedule will result in large fines, which will still have to be paid.

Loan repayment with insurance

Credit insurance as a guarantee of your protection

When issuing large loans, many banks convince the client to take advantage of the non-payment insurance program; in some organizations, the assistance of the insurer is mandatory.

The client is insured against non-payment of the loan if he loses his job; in addition, life insurance allows relatives and heirs to receive compensation if the borrower dies.

Until the issue with the insurer is resolved, the client will have to pay the loan on his own, so he will need to collect documents as quickly as possible.

As a result, the court will consider the case and oblige the insurance company to compensate the loan to the bank. In this case, the client may receive additional compensation for moral damage.

Loan repayment through court

Collectors have no right to threaten!

Usually the case comes to court six months to a year after the borrower has stopped. Banks are not interested in judicial consideration of the case, since it can drag on very slowly, and the client will be called with an offer to write off fines and select a restructuring program.

If the case is transferred to the district court, the debtor will be summoned to the hearing. Both sides will be heard, after which the bank will determine the final result and a writ of execution will be prepared.

The service is involved in enforcement proceedings: they have a number of influence tools to return the required amount. The debt can be repaid by the following means:

1. The debtor's property is seized and resold. Only personal belongings and household items, such as shoes, clothing, hygiene items, etc. cannot be confiscated. Formally, bailiffs do not have the right to take away pets, however, such cases periodically arise in practice. It is also prohibited to take away the only housing (except for one purchased with a mortgage), as well as items through which the debtor receives income.
2. Funds are debited from bank accounts. Child benefits and some other social support payments cannot be withdrawn; funds can be debited from the debtor’s ruble or foreign currency account.
3. Up to 50% of the borrower's salary is withheld. In this case, the balance must be no less than the subsistence level in the region for the borrower himself and for each dependent.

Before you take out a loan, weigh all the nuances!

If the borrower does not have a white salary and property, the bailiffs will actually not be able to get anything. However, when transferring property “as a gift” to relatives in order to hide from payments, the actions of the borrower may be recognized. In this case, he already faces criminal liability, so it’s still better not to cheat with the state.

In this case, the debt will no longer increase: its amount is established by a court decision, and the bank cannot charge any penalties or fines. You can and should agree on a payment schedule with the bailiff service employees in order to gradually pay off your obligations. As a result, payments may last for several years, and during this time the borrower will be able to solve financial problems and cope with his own problems.

After repaying the debt through the court, the borrower’s credit history will be very seriously damaged: it will be very difficult to get a loan from any bank in the near future, and long-term work will be required to restore the reputation. In all cases, it is better to independently resolve the issue with the bank as quickly as possible and achieve a peaceful resolution of the issue.

What to do if you can’t pay the loan? Look for answers in the video:

Nowadays, unfortunately, in order to make a major purchase, many of us need to apply to the bank for a loan. Now each bank is able to offer its potential borrowers dozens of different lending programs on completely different conditions from each other. However, not all borrowers are aware of the fact that even despite favorable loan conditions, banks do not give them borrowed funds, but only lend them money for a while, for which they still have to pay.

What to do if you can’t repay the loan

Due to their financial illiteracy, borrowers very often suffer, as they are faced with a situation where they simply have nothing to pay for the loan. There can be many reasons for this: job loss, health problems, accident and much more. But whatever the reason, you still have to pay off your debts. The only question is how exactly this will have to be done. When a similar situation occurs, and the real opportunity to repay a previously taken loan disappears, the borrower needs to contact the bank and report the circumstances of the case in order to resolve the problem amicably.

Running from the bank, hiding, delaying repayment is a useless matter and fraught with very serious consequences, since sooner or later the debtor will be found and the entire debt will be collected from him with the penalties accumulated for each day of delay, and in the worst case, the matter may go to court and confiscation of property. In general, as soon as difficulties arise with repayment, the first thing to do is immediately contact your bank.

The credit institution, in turn, will help find a mutually beneficial compromise and offer the debtor a couple of options for solving the problem.

Notify the bank

And so, if the borrower has a problem with payments, he needs to inform the bank about it. Managers of the institution will study the debtor’s situation and offer him to restructure the debt that has arisen. That is, the bank will simply revise the payment schedule in favor of the borrower. This could be a reduction in the amount of monthly deductions, an increase in the loan term, etc. In this case, the old terms of the credit agreement are canceled, and a new agreement is concluded on new terms that will be beneficial not only to the bank, but also acceptable to the debtor himself. After all, the bank will still return its money, and the borrower will be able to repay the debt, but on completely different conditions. Moreover, in this case, the borrower’s credit file will not be spoiled by negative entries about late loan payments.

Credit holidays

The financial and credit organization is primarily interested in the borrower returning his entire debt with the established interest. Therefore, she will try in every possible way to find a compromise acceptable to both parties, just to return the funds and not bring the matter to court. An excellent solution would be to provide the debtor with so-called “credit holidays”, the essence of which is that the debtor is given a deferment of loan repayment for a period of one month to six months.

At the same time, the debtor will not need to pay anything within these terms, and the bank will not apply any sanctions to him either. During the period of the credit holiday, the debtor can easily resolve all his financial issues (for example, get a job or improve his health) and start paying off his debt to the bank. The only drawback of this option is that the debtor will have to prepare for a slightly increased cost of the loan, since the bank, by making such concessions, increases the period for the borrower to use the loan funds.

Refinancing

Another adequate solution to the problem is refinancing the existing one, that is, refinancing. Simply put, the borrower is looking for a reliable bank that will agree to transfer his debt to himself. After this, the new bank gives the borrower a new loan, which goes towards repaying an existing debt in another bank. In general, the essence is that the borrower takes out a new loan to pay off an old debt. Moreover, in most cases, the refinancing credit institution provides a new loan at a lower rate than the bank from which the debtor took the loan earlier.

Sale of collateral

In addition, if the debtor took out a loan secured by real estate (or, for example, a car), he can use it to pay off the existing debt. It should be taken into account that if the debtor decides to independently repay the entire debt to the bank by selling the collateral, penalties and fines for late payment of the loan will not be calculated from him. The biggest disadvantage in this situation is that the borrower will have to lose the collateral and most of the proceeds will have to be returned to the bank.

Find a guarantor

If the borrower has the opportunity, he can attract a solvent guarantor who will take on all his loan obligations. This, of course, is a very difficult option, since finding a person who wants to take on the debtor’s financial problems is very problematic. But if there is such an opportunity, then you should definitely take advantage of it.

The situation in which suddenly there is no money to pay for a loan, unfortunately, is not as rare as we would like. A borrower who has failed to calculate his strength, lost his job, or is suddenly forced to bear additional expenses is a standard problem. First of all, for the bank.

Reasons for insolvency

Let's look at the main reasons why it is not possible to return money to the bank:

• Job loss. This could be a layoff, voluntary resigning, or simply trying to find a better job. The result is the lack of a source of income and the inability to service your debt.
• Too many loans. Having overestimated his strength and taken on many loans, the borrower cannot repay all the loans.
• Additional expenses. This item includes all financial problems, ranging from the need to pay for expensive treatment, a child’s education at university, and ending with the global financial crisis, which increases the cost of paying for priority needs. For example, from 2015 to 2017, food prices almost doubled.

Options for solving the problem

Don't rely on chance. As soon as financial difficulties arise, you need to immediately contact the bank branch where you took out the loan (or any other, if the one you need is not nearby). The client must notify the specialist about the current situation and offer to find some kind of compromise solution. For example, reduce the interest rate, increase the loan term, thereby reducing the monthly payment, and so on. It is very important to immediately indicate your interest in solving the problem, and not hide. The main thing to remember is that you will have to pay in any case. How much and how is another matter.

Debt restructuring

This is the most effective of all options. Taking out a new loan to pay off an old one may seem like a stupid idea, but in reality it is not. Let's consider the advantages:

• A new loan agreement can be issued for a longer period. As a result, the total amount owed will be broken down more and the monthly payment will be reduced.
• The interest rate on the new loan may be lower, which will also reduce the payment amount. This feature is used by many borrowers. At the moment, about 54% of all loans are issued only to pay off old debt.

The bank is interested in the client continuing to service his loan, and for this he is even ready to give up part of the profit. An alternative option is to take out a loan not from this bank, but from another bank. In this case, it is important to do this before the first delays and other problems with repayment, otherwise another organization may not agree to take on the problem loan.

Borrower rights

Virtually all of the borrower's rights are described in the loan agreement. You can add a little to this. For example, if the client did not provide his residential property as collateral, which is the only place where he can live, the bank does not have the right to take it away. However, if there was a real estate pledge, in this case this rule does not apply.

Also, if the amount of fines and penalties has reached significant amounts and the bank refuses to cooperate by writing off or reducing such payments, it is better to solve the problem through the court. In such a situation, there is a high probability of not paying the fines in full. There are similar precedents in judicial practice. In one of them, the amount of fine payments was reduced by 19 times.

Other ways not to pay

As mentioned above, you will have to return the money to the bank in any case. But there are several options with which you can pay significantly less:

• Bankruptcy. Current legislation allows an individual to become bankrupt. This is indeed possible, but a court decision is needed here. From the moment of recognition, penalties and fines cease to accrue on the amount of the debt, and a clearly defined period is assigned during which the money must be repaid. Usually it does not exceed 5 years. Depending on the agreements with the bank, even the amount of the debt itself may be slightly reduced (by about 25-30%).
• Insurance payment. If the delay with all subsequent problems arose due to a situation for which the client was insured, most of the debt (or even all) will be paid by the insurance company. For example, there are insurance policies for disability, job loss, health problems, and so on. In this case, you will have to “fight” with the insurance company, which traditionally does not want to lose money, but this is where the bank can come to the rescue, because it doesn’t care where the money comes from.

Consequences for the borrower

If you completely refuse to pay the loan and do not respond to the bank’s threats, the following situations may arise:

• Realization of collateral. Everything that was included in the pledge agreement will be sold at auction. Moreover, the funds received are not always sufficient to fully repay the loan. As a result, the client is left without his property and still owes the bank.
• Confiscation of property. The bailiff describes more or less expensive property (for example, household appliances), and all this also goes under the hammer.
• Border crossing ban. Judicial practice is such that in most cases the borrower is deprived of the right to leave the territory of the Russian Federation in any way.
• Credit history. It contains all the information about the debt and the problems associated with servicing it. After this, getting a new loan becomes almost impossible.
• Attracting guarantors. If a guarantor was required when applying for a loan, the bank will begin to demand repayment of the debt from him. And his property will also be under threat of sale.
• Payments from salary/pension. As a last resort, if there is nothing more to take from the debtor and the guarantor, the court may order regular payments from wages, pensions or other official payments. In this option, the debt amount is frozen, no penalty is charged, and the client gradually repays the debt anyway.

What should you not do in a crisis situation?

• Under no circumstances should the bank be ignored. At the first request, you should always come to the department/branch, meet the employees halfway and demonstrate in every possible way your desire to solve the problem.
• You cannot try to sell the collateral.
• Transfer all your property to other people. The bank and the court will find out about this sooner or later anyway.

Welcome! Today we’ll talk about what to do if you can’t pay your mortgage. This question is very difficult and painful. Anyone who took out a mortgage will understand. Our experts will give advice on how to pay off your mortgage and arrears, as well as options for getting out of a difficult financial situation.

Mortgage loans are quite common in our country; many people have used this tool to solve their housing problem. However, during the period of servicing a mortgage loan, various situations may occur, including job loss, decrease in income, and so on. As a result, a situation may arise where it is impossible to repay the loan. Getting into it, many make various mistakes, which further aggravate their situation, but difficulties with servicing a loan are, in principle, a standard situation for a bank and the borrower has a lot of opportunities to solve it, without any significant losses.

If you are in arrears on your mortgage, there is, of course, cause for concern. The fact is that for the bank, failure to meet payment deadlines is a signal that the loan may not be repaid, that is, the risk of investments increases. In accordance with legal requirements, the bank is required to create additional reserves to cover such risk, and the reserves are created from profits. Thus, violation of payment deadlines leads to a reduction in the profit of the financial organization, therefore, the bank will use all possible methods to collect debts.

Methods of working with debtors who cannot pay their mortgage are usually described in banking agreements. In particular, the following measures may be applied to the borrower:

• Accrual of fines and penalties. If the borrower cannot pay interest or principal on time, the bank often begins to charge the borrower fines and penalties for each day of delay. It is not recommended to bring it to this point, because if you have nothing to pay at the existing rate, then servicing the debt with penalties will be even more difficult.
• Foreclosure on the co-borrower and guarantor - the joint borrower and guarantor of the mortgage, in the event of your delay, will be obliged to pay for you. Otherwise, the bank may collect the debt on your mortgage from them in court.
• Foreclosure of an apartment. This measure includes, among other things, eviction from it. As a result, it may turn out that the borrower has been paying the loan for some time, but due to the deterioration of the income situation, he is suddenly left without an apartment.

Options for solving the problem

Restructuring

In a situation where it is not clear what to do if there is no money to pay the mortgage, the first advice is to contact the bank for restructuring. Restructuring is a change in the terms of debt service.

The most common restructuring options are:

• Installment payment. In this case, the bank provides the borrower with the opportunity to increase the loan term in order to make the monthly payment amount smaller. Situations are possible when for some time the borrower has the opportunity to pay only interest and not repay the principal debt.
• Credit holidays. The bank may allow a debtor experiencing difficulties not to pay the loan for some time (for example, until he finds a new job or some external factors change).
• Suspension or cancellation of penalties. A financial institution may agree to cancel increased charges if it understands that this will allow the borrower to quickly pay off debts. The bank has no interest in creating problems for the debtor; it is much more profitable for the creditor to receive funds on time and, thus, earn a profit.

During the restructuring process, there may also be a change in the interest rate or currency of the loan (if the borrower’s problems began after the exchange rate of the currency in which the loan was issued sharply increased). In rare cases, part of the debt may even be written off.

You can learn more about it from the next post.

Refinancing

Another option for what to do could be refinancing. Essentially, this is getting a loan from another bank. To take out a mortgage from another financial institution, you need to make significant efforts and be prepared for the fact that the conditions for refinancing will be significantly worse than with the original loan. After all, now the borrower is in trouble and has outstanding debts and a negative credit history.

Since, as mentioned above, the presence of overdue debt means an increase in risk for the bank, only those banks that are willing to take on a high level of risk are ready to restructure loans from such debtors. This strategy also implies high profitability, and therefore high rates. Indeed, in the case of high-risk transactions, the financial organization has a high probability of losses or damages. Consequently, it will set a high interest rate to compensate for the losses from those debtors who do not have the money for a mortgage at the expense of those who do.

Thus, before making a decision to take out a mortgage from another bank, you need to carefully weigh all the positive (maintaining your credit history, the possibility of deferring payment) and negative (increasing the interest rate) sides. It is quite possible that it will be much more profitable to sell the collateral (apartment).

Selling an apartment

Selling housing that is pledged is one of the most common options for getting money to pay off the mortgage. This option may be acceptable for the borrower, since all the funds that remain after the sale of the apartment and repayment of the debt will remain at his disposal.

This can be a significant amount if the debtors have been paying off the loan over a long period of time. These funds can be used to rent housing for some time, until the financial situation becomes stable again and the borrower has the opportunity to get a mortgage loan again.

Banks also often agree to sell the collateral, since going to court, then seizing and selling the property with the help of bailiffs is a very long procedure, and it is more profitable for the bank to receive funds as quickly as possible. In addition, after the apartment is seized, the financial institution will have to put it on its balance sheet, which significantly worsens its liquidity and creates certain difficulties in complying with the standards established by the Central Bank.

Thus, selling an apartment may well be a solution in a situation where a borrower comes to the bank and utters a phrase that is very unpleasant for bankers: “I can’t pay the mortgage.”

Additional sources of income and savings

The first option where to get money to pay mortgage debts is to rent out the property. This means that the debtor will have to leave the apartment and move in with relatives, but a source will appear that will allow him to service the loan.

The second way is to borrow money from relatives. This source is one of the most reliable, because friends or parents often come to the rescue. The main thing to remember when paying off a loan from such a source is the need to repay debts, because if this is not done, there is a risk of losing friends or worsening relations with relatives. Therefore, after stabilizing your financial situation, it is imperative to pay off your debt to relatives or friends, at least a little.

The third way is to sell any property, for example, a car or furniture, or household appliances. In such a situation, it is necessary to be guided by the fact that it is better to live in an apartment and travel by public transport than to have a car and not have housing. The situation is similar with household appliances. If there is nowhere to put it, then why is it needed?

Of course, you should carefully analyze your spending. During a difficult financial situation, it is recommended to give up entertainment, vacation trips, and so on. You need to purchase only the essentials, and use all available funds to pay off your mortgage loan.

Bankruptcy

Not long ago, a tool appeared for those who have lost the ability to fulfill their financial obligations under a mortgage loan - bankruptcy of an individual. It involves identifying and selling all the property that a person has and using the funds received to pay off creditors’ claims. All claims for which there are insufficient funds to satisfy will be written off from the debtor.

However, this procedure has certain nuances. First, filing for bankruptcy on your own should be done with caution. The court that decides to initiate bankruptcy proceedings may consider that the person wants to avoid paying off all debts and refuse the procedure. As a result, you will have to make efforts to repay the loans. Therefore, it is more effective for the bank itself to go to court with a claim to declare the borrower bankrupt. But the bank will not do this until it has exhausted all means of voluntary repayment of the loan.

Secondly, bankruptcy implies the presence of an external manager, and these are additional costs for paying for his labor, and they are reimbursed through the sale of the debtor’s property. Therefore, if there is no property, then the procedure may also not begin.

It is also important to remember the consequences. Thus, for five years after bankruptcy you cannot take out loans or hold a leadership position. Therefore, before deciding to begin such a procedure, you need to think carefully about everything.

Credit

This method of solving the problem when there is nothing to service the mortgage is very ineffective, but, nevertheless, it is often used. It implies that the borrower, having taken out a consumer loan, pays off the interest and principal debt on the mortgage loan.

The ineffectiveness of this step is due to two reasons. The first is that the rate on a consumer loan is usually higher than on a mortgage. Thus, if there is no way to service the mortgage, where will the funds come from to also pay off the consumer loan? As a result of such a financial transaction, the borrower only further worsens his financial situation and drives himself into a corner.

The second reason why it is not recommended to take out consumer loans is collateral. The guarantee of friends, acquaintances or relatives is most often used as collateral for such loans. Consequently, by attracting additional funds in this way, a person can create difficulties and additional financial obligations for his relatives or friends, thereby spoiling his relationship with them and causing trouble.

What absolutely should not be done if you are overdue

The main thing you shouldn’t do in a difficult financial situation is to panic and hide from the bank. Many people believe that when problems arise, the bank is the enemy, but this is not true. If there is overdue debt, the bank is an ally. He is also interested in paying off debts as quickly as possible and is not interested in taking the apartment and then selling it or using it in other ways. Therefore, it is much more effective to come to the bank and report the existing difficulties in order to jointly find a way out.

Also, do not suddenly change your lifestyle and give up everything. There are quite enough options to survive a difficult financial period in life. You just need to think, and a way out will be found. Therefore, it is not worth refusing treatment, if it is needed, or food. Health should be preserved - this is the most valuable asset of any person.

So, the main advice in the situation of what to do if you cannot pay the mortgage would be the following - go to the bank and ask for restructuring. In parallel with this, it is necessary to reconsider your cost structure and find additional sources for servicing the loan.

Do you still have questions about this topic? We will be grateful if you leave them in the comments and rate the article.

If you find yourself in a difficult life situation and you need legal protection, then be sure to sign up for a free legal consultation with our lawyer. He will definitely tell you the way out.

What should a bona fide borrower do if, due to unforeseen circumstances, he will not be able to make loan payments on time and/or in full for some time?

Let's consider the most typical situation:

“I took out a phone (TV, washing machine, etc.) on credit. I paid on time and in full for 6 months. But then I became seriously ill (I was fired from my job, I was caring for sick children/mother/father, etc.) and now I can’t pay. What should I do?"

If you cannot repay the loan on time, this is not a reason to despair and prepare for the worst. Try to approach the problem intelligently.

If the debtor does not repay the loan on time or does not make the next payment before the day specified in the loan agreement, the bank automatically classifies this debt as overdue and the client faces penalties. In cases where the delay is a long time (from one to three months), the credit institution may demand early repayment of the entire amount of the debt, and if the debtor disagrees, file a claim in court.

The first thing a client who wants to achieve a deferment should do is come to the bank and report their problems. Moreover, it is best to do this in advance, when the moment of delay has not yet arrived, and in writing.

The main task of the borrower is to convince the loan officer that you cannot pay the bank for objective reasons. These primarily include job loss or serious illness. The bank must be confident that the borrower will soon overcome his problems and be able to repay the loan. If the borrower has a good credit history, understands the problem and is willing to pay, and not hide from bank employees, credit institutions will, for the most part, meet him halfway and offer a debt restructuring program.

Restructuring of credit debt is any action by the parties to the loan agreement (lender and borrower) to change the previously agreed terms of loan repayment. Most often they are undertaken when the borrower encounters objective difficulties with loan payments. For a number of reasons, banks are not interested in officially recognizing the borrower’s default and try in every possible way to avoid this by providing the borrower with deferments, installment plans, discounts, etc.

During restructuring, the payment schedule under the borrower's loan agreement changes, which reduces monthly loan payments.

There are the following main types of debt restructuring:

1. Increasing the loan repayment period - if the income level decreases, the bank can reduce the amount of the monthly payment, while increasing the loan repayment period (usually for a period from 6 months to 3 years).

2. Providing payment holidays (grace period) - to bona fide borrowers experiencing temporary financial difficulties, the bank offers a deferment of repayment of the principal debt (mainly for a period of 1 to 12 months) with monthly payment of only accrued interest, as well as the possibility of simultaneously increasing the loan term by period of payment holidays, and without increasing the loan term.

3. Transfer of a loan from foreign to national currency.

4. Refinancing of credit debt - the client is provided with a new loan for the amount of the actual debt, while the terms of the loan change (amount of monthly payment, loan repayment period).

5. Changing the procedure for repaying debt on a loan - the client is provided with a special regime for servicing the loan: for example, first the amount of the overdue principal debt is paid, then the amount of overdue interest and fees, then the amount of accrued fines and penalties.

The possibility of loan restructuring and the type of program provided are determined for each borrower individually, based on his specific current financial situation and the forecast for restoring the level of solvency. In this case, the bank requests a certain package of documents from the borrower and, after analyzing it, offers and discusses with the borrower the option of restructuring the loan.