A cash loan can be made for various purposes. Today it is possible to make a loan to repay another loan. In fact, with the Selic low, today’s conditions are much more favorable so you can borrow money with cheap interest to pay off an existing higher interest loan made last year or more months. The need to refinance a loan is a problem for many borrowers. But be aware, the terms of the new loan should be different from the previous one to be the best option.
Money to repay another loan and lower interest
Life does not always remain stable, but you can solve a difficult situation if you have your own money in savings. If this is not possible, you need to at least have credit in the square so you can apply for bank, financial and credit companies and make your short or long term personal loan application. Having credit is the best way to get cash for any need even by paying high interest in some cases like the loan offers to the negatives.
The bank gives unsecured customer interest money, and the customer is free to use it at his discretion. The utility can be the purchase of equipment, medical and dental treatment, travel or take out another existing loan.
A cash loan to pay off another loan is usually issued to an institution, co-operative, financial or p2p lending platform in general, credit is provided with a lower interest rate and fixed amounts of monthly payments. Such an operation helps in reducing the number of debts, installments or numerous existing financial commitments. If you hire a more advantageous offer today, all of your loans can be prepaid by paying installments or taken out by one with more favorable terms.
Loans from other credit institutions may be advanced in most Brazilian banks. From those with longer maturities to the shorter maturities and cost.
The loans actually intended to pay off another loan exist, they are called debt consolidation, credit portability, debt purchase, debt transfer and so on. But they are targeted transactions that offer a lot of bureaucracy to complete. Some banks regard such loans as risks to themselves.
Advantages of getting a cash loan
The advantages of getting a cash loan to pay off another loan besides shortening the term, the amount of installments and interest can be to create a relationship with another bank or institution that offer better resources and credit conditions for their use. Each bank may have specific and additional requirements, but generally everything is in accordance with BCB standards.
Statistics show that half of the people who can take payroll loans for example, also have other credit obligations and, at the same time, pay more than two loans.
Approximately 19% of borrowers have at least 5 loans outstanding in their benefits, payslips and salaries. The most common reason for the difficulty of repaying the loans may be the excessive burden of credit placed on themselves.
You do not need to apply for a loan to repay other loans because the effective rate of a new loan is less than the percentage of the current loans. Go ahead, you can also refinance the current contract.
Remove or extend the term of the loan
If you are a borrower and are in a situation of unforeseen circumstances and believe that you will not be able to meet your credit obligations over time, contact the bank to extend the term of the loan with lower installments or arrange a way to finish the loan ahead of time (remove).
If the bank does not comply with your requests, ask the other bank to make a new loan based on portability or debt transfer. Any questions about how to make a cash loan to pay another loan or consolidate all your doubts, contact or research the subject on the blog.