Loan restructuring: Get your existing loans in order with Bondora
Fast approval
Fixed interest rate as low as 8.99%
No collateral requirement
Why is it a good idea to restructure a loan?
Loan restructuring can be a strategic move that makes sense for various reasons. If you have one or more high-interest rate loans, restructuring offers the opportunity to lower your monthly payments by securing a more favorable interest rate. This can be particularly beneficial if you have costly consumer loans.
By restructuring to a loan with a lower interest rate, you can save money in the long run, and it can smooth your path to becoming debt-free.
For those juggling multiple smaller debts, it may also make sense to consider restructuring and consolidating them into a single loan. This can simplify your personal financial situation, make it easier to keep track of your payments, and potentially reduce your overall monthly expenses.
Furthermore, restructuring your loan can give you more flexibility as far as repayment is concerned. You can negotiate better terms tailored to your current financial circumstances such as extending the term of your loan to decrease your monthly payments. This can be especially helpful if your financial situation has changed since you first took out the loan.
Why restructure your loan with Bondora?
Choosing Bondora for loan restructuring comes with distinct advantages:
No security requirement: Bondora does not require security for loans, making them available to a wider audience.
Competitive interest rates: Bondora offers interest rates starting at just 8.99%. It can help you save on interest cots if you restructure a pricier loan.
Fast and efficient process: Bondora’s credit assessment is efficient and the money is immediately transferred to your account. This can be helpful if you need to restructure your loan quickly.
Flexibility with B Secure: Bondora’s B Secure plan offers the flexibility to tailor your repayment strategy. You can customize your installments schedule, request a grace period, adjust your loan term, and choose your preferred payment date.
Simplifying your debt: By consolidating multiple smaller loans into a single, larger loan with Bondora, you can make your debt management more transparent. This approach makes it easier to monitor your payments and, in many cases, can also reduce your overall borrowing costs.
Restructuring your loan with Bondora can be a smart way to improve your financial situation, lower your monthly payments, and gain more control over your fixed costs associated with debt settlement.
Restructuring your loan with Bondora
If you are considering restructuring your loan with Bondora, there are several criteria you need to meet:
You must be between 18 and 65 years old at the time of application.
You must hold a Danish personal identity number and have permanent residence in Denmark.
It is important that you have a fixed income with a sufficient disposable amount to cover your monthly expenses. This includes the monthly payments on the new loan.
You must have a clean payment history, including no defaults, arrears, bankruptcy proceedings or the like.
Once you confirm that you meet these criteria, it is time to initiate the restructuring process.
Begin by submitting your application for a new loan with Bondora. Here you must specify the desired amount and loan term, as well as fill in the necessary information on your financial circumstances. Bondora will conduct a credit assessment based on the information you have provided to determine whether you are eligible for a new loan.
Once your application has been approved, the funds will be transferred to your account. The next step is to redeem your existing loans. Here you need to contact your current lenders and ask for a statement of the residual balance of your current loan plus interest not yet due. Once you get this amount, transfer the funds from your account to settle the old loan. You can typically do this via a bank transfer.
By restructuring your existing loans in this manner, you are replacing your old, potentially more costly loans, with a new, more favorable loan from Bondora.
What loan types can be restructured?
There are several different types of loans that it often makes the most sense to restructure. While Bondora has expertise in restructuring various different types of debt, certain loan types are commonly more advantageous to restructure:
Consumer loans: Consumer loans often come with higher interest rates, as they usually pose a greater risk to the lender. Restructuring an expensive consumer loan to a loan with a lower interest rate with Bondora has the potential to yield significant savings in interest expenses throughout the loan’s duration.
Overdrafts: Bank overdrafts are a flexible loan type that usually has a high interest rate. By restructuring a bank overdraft into a low-interest loan, including a fixed-rate mortgage, you can reduce your interest costs and bring more stability to your finances.
Expensive car loans: If you hold a high-interest car loan, it may be a good idea to restructure it to a low-interest loan, such as a secured fixed-rate loan with collateral in your home equity or an unsecured loan with a more favorable rate.
Other loans without security in assets: Loans not secured with property or assets often come with higher interest rates. By restructuring to a loan with a lower interest rate, you can save on interest expenses and improve your financial standing.
When considering mortgage restructuring, it is important to recognize that it typically only makes sense to restructure your current mortgage to another mortgage, for example a fixed-rate mortgage.
How much can I borrow?
At Bondora, you have the option to borrow different amounts depending on your needs:
Standard low-interest loan:
Bondora offers low-interest loans ranging from EUR 100 up to EUR 10,000. This gives you the flexibility to choose the exact amount you need and tailor it to your financial needs.
Quick loans:
If you need a smaller loan amount for your short-term needs, Bondora also offers quick loans. These typically range from EUR 50 up to EUR 1,000. Quick loans are designed to offer instant access to funds, and repayment is usually within a shorter period of time.
Regardless of the type of loan you choose, it is important to borrow only the amount you need for restructuring. It is always a good idea to conduct a thorough assessment of your needs and your ability to repay the loan before deciding on an amount.
Do I get a variable- or a fixed-rate loan?
When you borrow from Bondora, you get to benefit from fixed, individually adjusted interest rates. This guarantees that your interest rate remains unchanged over the loan period, giving you greater predictability and stability.
The advantages of a fixed interest rate are many. First of all, it allows you to know exactly how much you need to pay each month. It simplifies budgeting and gives you better control over your finances. Regardless of fluctuations in the general interest rate level, your interest rate will remain constant throughout the entire loan period, meaning you do not have to worry about unforeseen interest rate increases.
Why we do not offer variable-interest loans
Many loan providers solely offer variable-rate loans. While variable interest rates may come with certain advantages, it is important to be aware of the potential risks and uncertainties associated with this type of loan.
With a variable-rate loan, the interest rate can fluctuate throughout the loan period. This happens in line with changes in the general interest rate level and according to the specific terms and conditions. This means that your monthly payments may increase or decrease over time, which can impact your financial security and ability to budget.
Unpredictable interest rate markets and the risk of growing interest costs are important aspects to consider when choosing an interest rate type. When you opt for a fixed-rate loan with Bondora, you gain the advantage of knowing your exact monthly payments in advance, so you completely eliminate the risk of unforeseen interest rate hikes. This gives our borrowers greater peace of mind and a more stable financial future.
How soon should the loan be repaid?
At Bondora, you have the opportunity to choose the repayment period that best suits your needs, ranging from 3 months up to 60 months.
By offering different repayment periods, Bondora gives you the flexibility to tailor the loan to your specific financial circumstances. If you want to repay the loan quickly, you can opt for a 3-month period. This way you can quickly become debt-free.
On the other hand, if you prefer lower installments and a longer payback period, you can choose a period of up to 60 months. This gives you more time to repay the loan and can result in more affordable monthly payments.
It is important to consider your financial situation and repayment ability when deciding on a repayment period. It is important to note that selecting a shorter repayment period will lead to higher monthly installments. Conversely, a longer repayment period will result in lower monthly installments, albeit with a higher total interest cost over the term of the loan.
Do I need to provide security for the loan?
Bondora’s loans are unsecured, which means that we do not require any form of security in the form of property or other assets.
One of the primary benefits of an unsecured loan is that you can apply for it regardless of whether or not you have physical assets. This makes it an appealing option for borrowers who do not necessarily possess significant valuables or who prefer not to pledge their property as collateral.
An unsecured loan also makes the process faster and more efficient. You do not have to wait for an appraisal or mortgage registration, which means you can access your funds faster.
Bondora’s approach to unsecured loans is based on a thorough credit assessment and analysis of your financial situation. This ensures that the loan offer is tailored to your needs and your ability to repay the loan.
Can I restructure loans if I am registered in RKI or the Debtor Register?
If you are registered in RKI or the Debtor Register, you do not qualify for a loan from Bondora.
Registration in these registers indicates payment problems and non-performing debts, which affects your creditworthiness. Bondora can only offer competitive interest rates because we conduct a careful credit assessment, so registration in these registers will influence the approval decision for the applicant.