What to do in case you choose a consolidation loan
Are the installments to be paid too many and weigh too much on the family budget? The solution is there and is called consolidation loan. This is a financial instrument introduced through DL 212/2011 in order to counter the phenomenon of indebtedness that affects many families, especially in times of economic crisis. We explain in simple terms what to do in case you choose to apply for a consolidation loan.
Consolidation loan: features
The consolidation loan allows the extinction of the already active loans and the stipulation of a new loan. Allows you to cope with a certain number of installments, merging them into one, of a lower monthly amount. The amortization period will be higher. It should be noted however that the consolidation loan is not always possible and not in all cases represents an advantage. However, there are situations in which it is possible to significantly reduce the monthly payment, but in any case the debt exposure of the subject increases.
Here are the main features of a consolidation loan:
- The ratio between the applicant’s monthly revenue and the installment must be balanced and effectively sustainable;
- If consolidation takes place through the Cession of the Fifth, it does not affect the client’s history.
- There is a possible request for a guarantor, but in the case of a transfer of the fifth it is not necessary.
- Complete documentation relating to debts still to be paid off.
What to do to get it
When applying for a consolidation loan, as a general rule all the documentation necessary for obtaining it must contain detailed information regarding the previous financial situation. This means that the process of preliminary investigation, and related feasibility assessment, could be rather complex and take a long time.
In this way the previous loans are extinguished by the credit institution that will accept your request for consolidation, thus becoming the sole creditor.
In this regard, the solution designed by Manubank is called Salda Manu which allows for a consolidation of loans, with the extinction of loans in progress. The advantages:
- Only one installment (but not in all cases is an advantageous condition);
- No mortgage guarantee;
- Low rate;
- Fixed rate and rate, for the duration of the contract and customizable according to your needs.