Regulation of loans

What to consider when setting up loans.

Everything you need to know about loan regulation.

Οδικός χάρτης για τη ρύθμιση δανείων
As a Greek businessman with borrowing obligations, you have certainly tried, at least once, to keep unscathed the door of a bank for the coveted loan arrangement. In this process, there are parameters that can lead you to your desired setting directly and effectively.

In Mentory, we are always looking for the optimal solution for your business and we are prepared to respond to any question regarding the personal case of servicing your debt to any financial institution.

The main category of the borrowing obligations towards the financial institutions which are based on their ability to service-repayment contains:

     –  “informed” loans

     –  “overdue” loans

The policy of banks towards “informed” loans

The banking system has a marked attitude of disregard for the demands of regulating current loans. It is not a priority for any credit institution that a debtor who serves his obligations wants smaller disbursement installment, mainly through the fall in the interest rate (margin of the bank). The oxymoron resides in the fact that consistent borrowers are virtually “punished” for their consistency as they are not provided with incentives to improve the terms of their debt obligations. Only this type of borrowers is likely to receive future funding from credit institutions, which are already considering such requests.

Bank policy on “overdue” loans

The category of loans that attracts the most interest borrowers is significantly more favorable, both in settlement and repayment terms. Cases of “rebates”, “cuts” or exemptions of all overdue interest and the associated costs are the majority. The interest rates shown are unprecedented as they start at 0% and reach up to 4% for all or part of the repayment time of the debts.

The most important parameters in the loan settlement process are as follows:

  1. Real estate

The higher the value of the debt in relation to real estate, the greater the margins the borrowers have to negotiate. In contrast, if the value of the real estate exceeds the balance of the debt, then the trading margin narrows as creditors are in an advantageous position.

  1. Vulnerable groups

Health issues, unemployment, minor children or other protected members are important factors for the final outcome of the regulation.

  1. Duration of non-service

The length of time the loan is “overdue” plays an important role in regulating it.

  1. Financial data of debtors

The financial data of debtors and guarantors as well as the possibility of additional guarantors are factors of influence.

  1. Age (and other personal information)

Even these are factors in the final terms of loan regulation.

If you wish to negotiate your settlement, it is a good idea to make sure that you do it immediately because time and interest are never “sleeping”. Whatever repayment plan involves multiple fermentations, which Mentory can do for you, with its knowledge and experience in regulating loans. Solutions certainly exist for each case and are the result of knowledge, data, work, and perspective. In Mentory, we aspire to be your fellow travelers by providing interbank mediation services with credibility, confidentiality, and transparency.

In Mentory, we aspire to be your fellow travelers by providing banking mediation services with credibility, confidentiality, and transparency.

For more information about setting up your own loan, contact us.