Long-term loans are one of bigger life's decisions that make big dreams come true, but at the same time you bound yourself to be able to repay them in the long run. Thinking about what the future holds may not be so pleasant.
Even though you may be an inveterate optimist and have your pink glasses on for the future, be realistic when it comes to finance. Life can surprise anyone, even if we are fully prepared for unexpected conditions.
Borrowers that are unable to repay their responsibilities due to unemployment or long-term illness often find themselves in hot water. It is best to start solving the matter as soon as possible. The most important thing to know is that you should not wait too long and start searching for a solution right away. At SKB bank we are prepared to help you and enable you to refinance the loan.
Times are changing
… and so do the bank loans. The offer is becoming wider and maybe the conditions of a new loan suit your current financial abilities better.
With the possibility of loan refinancing, SKB enables you to get a new loan and repay the old one with it. With loan refinancing you get a new approved loan with longer repayment period and make your current monthly responsibilities more affordable.
You can refinance any loan at SKB or other bank; conditions of regular offer apply.
- lower monthly responsibility with prolonged repayment period,
- merging responsibilities of more loans into one,
- favourable new SKB loan with longer repayment period. With this option it must be considered that the costs of getting a new loan are the same as the costs of getting a loan in regular offer. On the other hand, the terms of hiring a new loan can be much better. With this loan you make a prepayment of one or more existing loans at SKB or other banks. The amount of new loan is calculated based on credit ability of the costumer; the terms for calculation are the same as for loans in regular offer.
With a housing loan only a housing loan can be refinanced, and the bank can approve only the amount of remaining balance of the existing housing loan.
With a consumer loan all loans can be refinanced, and any amount can be approved. The amount can also be higher than the combined amount of existing loans.
Loan refinancing costs are the same as the costs of hiring a loan from regular offer.
How much loan can you afford?
The amount of the loan approved by the bank depends on your income. Every month after repaying your monthly responsibilities you must have enough money on your account to cover the living expenses. As a rule, depending on every individual though, the amount that needs to stay on your account after paying the monthly loan instalment should be at least the same as minimum net salary or the loan instalment should not exceed 55 % of your monthly income respectively.
Fixed or variable interest rate?
When hiring a loan, you must decide on the type of interest rate. With fixed interest rate the monthly responsibility is more or less the same through the whole loan repayment period; the variable interest rate has more financial risks – monthly responsibilities can considerably increase or decrease because of the EURIBOR reference interest rate trend. On the other hand, this means that upon approval the fixed interest rate is generally higher than the variable interest rate.
An important advantage and safety feature of fixed interest rate is that you already know today how much you are going to pay tomorrow, no matter the market changes.