Are you in debt and are you starting to grow over your head? One option that you have is to take advantage of the bank consolidation offerings of your loans. Loan consolidation allows you to merge several of your loans into one. This will help you to reduce the installments, extend the maturity of the loans and, in addition, you can often borrow more money. Banking consolidation is usually in the range of 10 000 to 500 000 CZK. The interest rate will be reduced with consolidation as well as monthly payments. You do not pay any fees for handling the consolidation. However, the provision of a merger of loans is often conditioned by the establishment of a current account with them. One of the advantages is the ability to insure this product against being unable to repay.
Who can apply for bank consolidation?
Employees, self-employed persons or pensioners with Czech citizenship who have more than one loan or credit card, overdraft facility or installment payments, etc. The condition is to repay these loans; you are asking for consolidation in the bank.
How much do I have to borrow on bank consolidation?
The amount of the loan depends on the total amount that should be repaid from the loan. The credit costs are also added to 5% as early repayment costs.
When do you prefer to avoid bank consolidation?
If the bank offers you a consolidation with APR of around 20%, in this case it is better to take a classic consumer loan
- if you have low income
- if you are in the debtor’s registers
- In a bank where you have a loan you usually do not comply with the request for consolidation
How do I choose the right bank?
Each bank has different conditions and other parameters to calculate the client’s creditworthiness. In some cases, banks assess their clients individually, and you can also succeed with the registry entry.
Bank consolidation loans comparison
Banks usually offer calculators on your website, so you can immediately calculate your loan amount, interest rate, and repayment period.