Simplify financial management with a structured loan

Anyone can get into the debt spiral, but fortunately it can also be overcome. In this post, we’ll tell you what a mortgage loan is and why an indebted person should consider applying for that loan.

Keep an eye on your finances

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Many types of loans make it difficult to manage the economy. You need to keep an eye on your finances to keep up with the monthly loan repayments. This also requires an ongoing review of your budget. With multiple loan repayments, the amount of interest and debt service charges may also be surprising.

This can lead to inadequate income for living and loan repayments, which will require you to take out new loans to repay the previous ones. In such a situation, it is worth considering applying for a restructuring loan at the latest.

What does a structured loan mean?

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The purpose of the arrangement loan is to facilitate the life and financial management of the indebted person by combining several different loans into one. This will keep debt repayments, loan servicing costs and interest expenses at a moderate level. The arrangement loan also takes into account the applicant’s personal situation and ability to pay.

There are different types of arrangement loans. In some structured loans, the debtor removes the debt, and in others, the lender manages the debts below, paying off the loans directly. The amount of overhead loan granted varies from one loan provider to another.

When can I get a mortgage loan?

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The arrangement loan can be granted to a Finnish citizen aged 20-65 who has been permanently resident in Finland for the last year or a person who has been habitually resident in Finland for the last three years.

Applicants for a restructuring loan must have regular income, for example from paid employment or retirement. The income requirements vary from one operator to another.

There should be a maximum of different types of consumer credit and debt as much as the overdraft facility can be granted. An overdraft is usually granted only if the credit information is in order. However, the practice varies depending on the loan provider. It is therefore possible to obtain a business loan even if the applicant has a default payment.

Usually, the lenders of the overdraft require at least one solidary person to apply for the loan, who will secure the repayment of the loan if the borrower’s own solvency is impaired. Solidarity is also ultimately responsible for the repayment of the arrangement loan. He will also be informed if the loan is overdue. The jointly and severally liable person shall not bear any default payment.

When is a restructuring loan not granted?

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Typically, a structured loan is not granted to pay off debts arising from a criminal offense. Granting of a loan may also be refused if the applicant’s indebtedness continues or if the total amount of the loans exceeds the ceiling of the arrangement loan and the granting of the loan would therefore not significantly improve the situation of the debtor.

A mortgage loan can also be denied even if the borrower is dishonest about the current amount of his debt or if the probationary period of his employment is still in progress.