Rescheduling of motor vehicle loans
The roll over on top conditions is nothing illegal. Transfer – how the whole thing works In various situations, it may happen that a borrower wants a loan taken on by him to be transferred to a third person – for example in the family circle. The draft of a “loan transfer” is always linked to a debtor bill and requires the approval of the lender. For a proper and legal transfer of a loan, the various options must vary from bank to bank – however, a certain number of formalities must always be complied with.
The following article deals with the topic “referral” and contains all essential requirements as well as many hints for the best possible implementation. Why can a transfer make sense? The transfer process may be particularly advantageous when credit-related financial transactions within the host family and “clean” are to be separated from each other.
After three years, the boy is working and wants to pay off the loan on his own. In order to adapt the loan agreement to the actual ownership, the father decides to transfer the loan so that his offspring will not only take over the installment (“installment payment” could be made with a direct debit change) but also the borrower himself.
Regardless of financial transactions within the host family, a loan transfer may also be useful in cooperation with third parties. These are, in particular, cases in which the parties concerned, ie the original or the new debtor, have benefited economically from the debtor’s change. This may, for example, be associated with a sale of a home and the possibility that the actual borrower had a current loan agreement on very advantageous terms.
Borrowing in this example may be beneficial to the acquirer or new borrower because he would otherwise have to refinance the loan at current and possibly higher terms. Depending on the arrangement of the contract, the original borrower saves the payment of a possible prepayment penalty, if he can “pass on” the original loan to the purchaser, instead of repaying it over the selling price.
The loan transfer project is, from the perspective of the lender, at first crucial. The reason for this is that BayernLB does not want any deterioration in the security with regard to the existing loan agreement. Therefore, the new and acquiring debtor should always have adequate and, ideally, at least the same credit ratings as the original debtor.
It is particularly important for the principal bank that the loan transfer requested by the borrower does not lead to an “increased risk”. The decisive factor here is, above all, that the risk rating of the original borrower at the time the loan was taken was decisive for determining the interest rate level. Because the usual parameters for lending, such as interest, interest rate or repayment, are not affected by a mere transfer, credit institutions also require the same collateral.
Most standard loan agreements do not contain any indications of a later transfer of the loan, so that the borrower is generally not entitled to a debtor bill. It therefore always depends to some extent on the goodwill of the bank in question. From the banks’ point of view, the new borrower must first be put through its paces to determine if there is sufficient credit standing to continue the existing credit agreement.
Take over an existing loan
Most banks have the same standards and conditions as the initial allocation. In short, to take over an existing loan, a physical person must, in principle, have the same conditions as a new contract. The new debtor must be able to prove both the creditworthiness and the credit rating and z. B. be 18 years.
In addition, the borrower must receive an operating result that provides sufficient debt servicing capacity, as measured by the rate of the present contract. Therefore, for most banks, the positive credit bureau information is an indispensable criterion when approving a debtor bill. Because the house bank may not yet have known the new borrower, unlike the previous borrower, it is not uncommon for the principal banks to ask for a bank statement from the new borrower.
Detailed information on the new borrower’s payment pattern can be obtained by credit institutions on the basis of the payroll extracts. These can be crucial for the debtor change decision. Finally, of course, all the formal requirements, such as special forms of the corresponding house bank, must be met and signed by all parties. The desired loan transfer must be documented in writing in order to be legally valid and to leave no doubt about further loan repayments.
Whenever a change of debtor is desired, a personal meeting with the relevant financial institution should be sought from the beginning. First of all, the house bank must have agreed to the credit transfer anyway, and it is clearly of great use that the house bank is on board to prepare the necessary debtor exchange.
In the case of any credit transfer fees, personal contact with the relevant bank must be established without delay. In the case of credit transfers, the experts’ expertise is always very important, because even a single, unfortunate embodiment of the loan agreement could ensure that the actual borrower is not 100% exempt from the obligations under the loan agreement.
Conclusion: There can be a variety of causes for loan transfer, but it is important that a targeted change of borrower is always well equipped and coordinated with the institution concerned. As a rule, credit institutions must always have agreed to a loan transfer, which is why the new borrower must have fulfilled all the usual conditions for granting a loan. From the point of view of the bank, it is of particular importance that the security of the loan or the risk of default does not diminish as a result of the intended transfer.
In the event of a debtor change, you should inform yourself from the very beginning of the respective house bank individually in order to achieve a satisfactory and legally effective result for all parties.