A loan buy-back is an operation that brings together several loans taken out with several banks in a single credit at reduced monthly rate, from one bank to another.
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Repurchase of loans from one bank to another
Borrowers who are thinking about loan consolidation often wonder how the transaction will take place knowing that most of the time the credits are taken out with different banks. A whole series of questions are emerging, which is quite logical: who will buy the credits? How does the bank take over the credit? What should I do?. When a credit institution or a bank offers a buyback of loans, it will pay all the lenders of the debts concerned, by sending them a transfer or a check. This step takes place when the funds are released, that is at the time of the financing. It is at this stage that the borrower ends up with only one reduced monthly payment.
Grouping of credits from one bank to another: the process
For a loan pool to be established, an application must be made to a specialized agency. It can be a bank, a credit institution or a banking intermediary. It is simply a matter of filling out an online form or calling the customer service, which allows for taking into account all the information relating to the customer’s situation. This approach is completely free and without commitment. Once the information is received, an analyst is in charge of studying the situation of the borrower and checking with banking partners viable solutions (in the context of a request to a bank intermediary). All the steps are clearly explained to the borrower, which allows him to be informed in real time and understand the operation of the operation.
The banks’ point of view on the redemption of credits
Banks do not oppose the desire of their client to want to buy a loan. When the borrower goes through a bank intermediary, there is no change of bank domiciliation, there is simply a repurchase of outstanding loans. On the contrary, banks appreciate the approach since the borrower seeks to improve its situation and regain banking stability. The grouping of loans also makes it possible to centralize the debits linked to bank debts, by means of a single reduced monthly payment. The management is less complicated for the borrower but also for the advisor, which saves time in the follow-up of his client.