Increasing an outstanding loan
- Author: Iohan Colarusso
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You are currently repaying a loan and need some extra cash? How do you increase an outstanding personal loan? Do you have to submit your request to the institution with which you signed your initial contract? What consequences are there on the interest rate?
Additional loan = new contract
This procedure is similar to a new loan application. Consequently, you have to start over: fill in the online loan application form and provide the usual documents.
Choice of broker or banking institution
You are free to call on a different banking institution or finance company to that with which you signed your previous contract.
Rate renegotiation
As this is a new application with the bank, we are able to renegotiate the interest rate for the whole debt, not only for the additional amount.
Raised or lowered interest rates?
In the vast majority of cases, we are able to lower the interest rate. However in some relatively rare cases, the rate may be increased if your financial situation has degraded or, for example, if your credit score has been penalised due to multiple requests to increase the loan amount made too close together.
Repayment period
You are still free to determine the repayment period: you can keep the original repayment period, extend it or shorten it.
- Categories: Outstanding loan