How to translate short -term loans into long -term

When a person takes money or on credit, he expects to give it to a certain period. There are situations when it is impossible to pay off the debt in time. Then we are talking about extending credit obligations for a longer period.

A short -term loan is a loan that is issued up to 12 months. All other loans are already long -term. If there is a need to restructure a loan, then you need to study the contract. The deadline for extending payments should be agreed upon by both parties.

When the parties settled the issue of transferring a loan from a short -term to a long -term, you need to draw up a new contract. This agreement stipulates the extension period and the amount of payments to the borrower. Or draw up an addition to an existing agreement with a similar content.

An agreement or addition to the contract must be drawn up in duplicate - for each of the parties. It must be signed by the authorized employee of the bank and the client.

But before signing the newly drawn up agreement, the debt repayment schedule should be drawn up. At the same time, take into account the new circumstances that influenced the transfer of a short -term loan into a long -term. And do not ignore the new conditions that apply at the time of registration of the contract in the credit institution.

It should also be taken into account that if you have not missed payments on a short -term loan, then its transfer to the long -term will not be problematic. If payments have been expired, penalties can be applied. Will this penalty be calculated? Based on the expired days.

To transfer a short -term loan into a long -term, not only the will of the client can be needed. If payments are not received in the period of time, which is stipulated in the contract, then the bank has the right to apply to the court. The court may oblige the borrower for payments in the course of a long period if the bank has nothing to compensate for the loss. For example, the borrower has no property or valuable things.

In the design of the loan restructuring procedure, as in any other financial transaction, it is important to be very careful. Explore the contract thoroughly, including all its obvious and hidden subparagraphs.