We are facing a turning point in the consumer credit sector. In a zero rate environment, banks are looking for ways to maintain their profit margins. We see this in the increase in commissions on current accounts or negative interest deposits. And now we also see it in the granting of loans, a very profitable product for entities.
For this reason some banks have begun to offer as a service to change the bank loan to improve the conditions that we currently have. We explain what this new fashion consists of and what entities offer it.
Characteristics of refinancing a loan
Although the possibility of making loan changes has always been possible, currently only three entities advertise this operation as a service they offer. These credits allow us to achieve a reduction of up to 3% on interest with respect to our current credit.
The response obtained to a credit change with the same profile and the same conditions varied according to the office. Although all banks were open to make a loan change in at least one office. However, approval was conditional on an in-depth study of our profile and on domiciling our income.
The discount that we could get by changing our bank loan will depend on our profile and the conditions of our current loan. In most cases the financing terms they offered are the same as their advertised loans.
On the occasions when some offices refused to make the loan change, the reason was that we must be clients with a certain seniority and relationship before we can apply for financing in the new entity.
How to change a bank credit?
The bank change process may be in two ways, depending on the entity we go to:
- In the case of the banks that offer this advertised service, it will be the entities themselves that directly transfer the money to our current bank and we will begin to pay the fees in the new bank.
- In the case of banks that do not yet advertise this option as a service, the new entity will transfer the money from the credit to our account and we should be the ones to cancel our current credit. In addition, we must deliver proof of cancellation to the new bank.
Although there are still only a few entities that offer this service openly, practically all entities will allow us to change the bank loan and everything indicates that this trend will grow throughout the year.