Simply put, cash loan restructuring is a solution designed for all people who have a loan and have financial problems caused by unfortunate cases, such as serious illness, job loss or sudden, unforeseen expenses. If we want to avoid financial problems, we should consider using this option.

Who is the loan restructuring intended for?

Deciding to restructure the loan is associated with a change in the terms of the loan agreement to facilitate repayment of the remaining part of the financial liability.

You have to be prepared for the fact that the modification of the provisions in such a document will mainly concern the extension of the loan settlement deadline. In this way, we will get a chance to gradually get rid of debts and, most importantly, avoid a spiral of debt.

Loan restructuring – what makes this process stand out?

It is important to know that if we are sure that we will not be able to regularly pay the remainder of the liability due to one of the factors mentioned above, we must inform the financial institution as soon as possible and submit a special loan restructuring application.

If we do not report it and we do not pay the loan installment on time, then one must take into account that the bank will send a request for immediate payment within 14 business days.

Can we submit a restructuring form in this situation? Yes, but we also have only two weeks to submit such a document, after this period has been exceeded, the institution may not give us a chance to use this solution.

How to write a loan restructuring application?

A template for a loan restructuring application can be found on the website of each financial institution. The letter should be downloaded, printed, carefully completed and submitted to the bank or sent by post. Below we have prepared a step-by-step guide that will indicate what information must be entered into such a form.

• First of all, we enter our basic data, i.e. name and address of residence.
• Then we complete the date and place of preparation of the application as well as the identification details of the loan agreement.
• The next entries in the form will be the name of the bank in which we took, for example, a cash loan as well as details of the loan agreement and its conclusion date.
• Then we choose the way we prefer to refinance the financial liability, i.e. extending the repayment deadline or credit default.
• The most important provision in the application concerns the characterization of the reason for restructuring the loan, i.e. loss of a job. You should also indicate the estimated time of difficulty with regular repayment.
• Finally, you must sign your signature.

Important – in addition to submitting the application, each financial institution will require delivery of documents confirming, e.g. loss of a job, current financial situation or certificates regarding our debts.

Types of loan restructuring – what do you need to know about them?

Everyone who wants to decide to restructure the loan should be aware of what types of such a solution are in force in banks. It is important to know that any financial institution will always want the method of restructuring to be properly adapted to the individual situation of the borrower.

Types of loan restructuring:

• changing the date of repayment – this is by far the most popular form of restructuring, which consists of extending the financial liability settlement period and reducing the monthly loan installment.
• reducing the number of additional costs of the loan (commission, interest rate) – this is only possible if the extended repayment date of the liability continues to generate too high costs.
• balloon installments – that is, changing the number of individual loan installments to unequal. In this way, the first installments after the introduction of restructuring will be lower, only after a while, they will start to increase.

At this point, it is worth mentioning the so-called credit vacation, which can also be included in the types of loan restructuring. This solution allows you not to pay two or three installments of the liability, only after 2-3 months, the borrower will be required to continue repayment with additional costs.

Is it worth taking advantage of loan restructuring?

The answer to this question is quite simple – it is worth taking advantage of the loan restructuring, but only if we find ourselves in serious financial problems and we are not able to repay the loan within the previously set deadlines. Otherwise, the bank will not allow us to use this solution.

At this point, it should be mentioned that the restructuring of the loan involves additional costs that are imposed by each financial institution. These receivables are always calculated primarily on the basis of the following parameters: loan amount repayment period.