Delaying payments on debt obligations always has many negative consequences. This includes a significant deterioration in credit history, problems with collection services, and even settling disputes in court. All of this takes a huge amount of time and emotional resources, and makes it impossible to continue to interact with financial companies. However, such stories arise only when the client categorically refuses to make contact and is not ready to discuss possible compromises.
Prolongation is an extension of the loan term after payment of interest for previous periods
But there is good news. In cases of force majeure, you can use the “loan extension” function and resolve the issue with the least losses.
When should you use the prolongation service?
You decide on this issue on a case-by-case basis. But prolonging a loan agreement will definitely come in handy in the following situations:
- The money earned did not come in full or was very late;
- The money was urgently needed for other, no less important, needs: buying groceries or medicines, paying for medical treatment or education, paying for utilities or mobile communications;
- Due to the number of daily issues, you simply forgot about the dates set for the refund;
- Personal money was stolen or disappeared due to other criminal acts of third parties.
If you cannot pay off the loan on time, ask the manager for an extension
In all of the above cases, you should immediately transfer the information to the microfinance organization and request that they work on the extension of the loan agreement.
Terms of prolongation of an overdue loan from a Ukrainian MFI
| Title. | Terms. |
| TopCredit | Every 10 days, the client pays the amount of accrued interest, and then can use the money for an unlimited amount of time. |
| Alexcredit | The borrower has the right to choose the loan extension period – for 10, 20 or 30 calendar days. To activate it, you need to pay the entire amount of accrued interest and the amount for the service itself (it depends on the chosen term and can be seen in your personal account). After the debt restructuring has taken effect, interest continues to accrue. |
| CreditPlus | The extension period can be the number of days for which the agreement was originally concluded. To activate the service, you must pay for interest, as well as fines and penalties, if any. There is no fee for using the service. |
| Dinero | The available extension options are 7, 14, or 20 days. For the new format to take effect, it is enough to pay for it through your personal account before the last day of the contract. |
How to apply for an extension?
To take advantage of the additional features and get the overdue loan prolongation working, you need to follow a simple algorithm:
- Go to your Personal Account and find the tab with the appropriate name;
- Choose the most appropriate number of days;
- Get a positive decision to conclude a deal with new payment parameters;
- Be sure to stick to the schedule and don’t let force majeure situations arise again – it’s unlikely that the company will meet you again.
If you can’t figure out the technical aspects and it’s difficult to apply for a loan refinancing, it’s better to contact the company’s specialists at the phone numbers listed on the website.
Before sending a request to revise the debt repayment schedule, be sure to read the explanatory paragraphs on the company’s website. Different MFIs have different loan prolongation policies and may differ for better or worse. For example, some of them provide this service for free, while others charge a symbolic amount.
Why is it important?
Successfully solving a problem with potential debt will be a calming factor for your psyche and help you avoid a number of unpleasant consequences:
- There is a high probability of being blacklisted by the BKI;
- Inability to use financial assistance from any credit organizations in the future;
- Participation in long-term and very ridiculous litigation;
- Dealing with unpleasant employees of collection services.
Loan prolongation is a chance to safely solve financial difficulties
When choosing an MFI to cooperate with, it is very important to look for information about the possibility of extending the loan agreement online. Not all companies offer such a service, and if you don’t notice this, you may find yourself in a very unpleasant situation.
