Many citizens in Armenia face the problem of repaying the loan. The reasons for everyone are different. But there are also similar situations. For example, the borrower often fails to pay off the debt due to the reduction of salaries. There are cases when people become insolvent with "empty pockets", whereas their interest rate is increasing.

Of course, every citizen perceives the financial failures in his own way. Some people are just trying to ignore them, and some of them immediately go into a panic. But in the whole world, as well as in Armenia, the loan can be refinanced or revised. Finagent.am presents some practical advice that will help refinance the loan if the borrower is in a very poor state.

First of all, loan refinancing can be carried out on the basis of agreement between the bank and the client (who has financial difficulties). A new bank loan repayment scheme is being worked out. To use the refinancing service, the borrower must first prepare a package that will contain some important documents.

Among them are:

1. application form, defined and already completed by the bank;

2. Copy of the work book and passport pages

3. If the borrower has lost his / her main job, he / she must submit a sheet confirming that he is currently registered in the employment service and is looking for a job. The amount of unemployment benefit should also be indicated on that sheet.

Before applying for a loan refinancing, a citizen should be aware that the debt can be revised in several ways.

The first option involves a loan repayment extension. This implies a reduction in the monthly repayment amount, though it also results in an increase in the total loan liability.

The second option, which can be offered by the bank, suggests a change in the loan currency. For example, if the dollar has increased, and the loan is in dollars, the borrower is in a difficult situation. In this case, the borrower could ask the bank to make a dollar loan in drams. Although the answer is not always positive.

The third option involves providing concessional time. The bank may deduct the principal from the repayment of the loan for a period of 3-12 months, at which time he pays only interest.

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