Do you have a loan or mortgage in progress and are you having difficulty paying your installments monthly? Don’t worry, the law provides for the suspension of loan installments. To avoid getting into trouble, always check your repayment ability before entering into a loan agreement.
The possibility of suspending the financing was signed by the ABI and the consumer associations regarding the suspension of the capital share of household loans to encourage economic recovery and protect citizens in difficulty. However, it is not always possible to suspend payment. Let’s see together when possible, who can request it and how the suspension works.
When it is possible to suspend the installments of a loan
The law provides for the suspension of loan installments only once and for twelve months. In this period of time it is therefore possible not to pay the main portion of the monthly installments, but interest must be paid in any case.
In order to request the suspension of the payment of the installments of a loan, one of the following loans must be in progress:
- A personal loan lasting more than 24 months;
- Mortgage-backed home loan.
It is not possible to suspend the installments of a loan with a duration of less than 24 months, the assignment of the fifth of the salary and the assignment of the fifth of the pension.
Who can apply for the suspension of the loan installments?
As we said before, it is not always possible to request the suspension of the installments of a loan.
You can only apply if one of the following events has occurred:
- Job loss;
- Reduction of working hours;
- Death of the holder of the loan or mortgage;
- Handicap or serious injury.
In order to request the suspension of the installments of a loan, it is also necessary to:
- Not having repaid more than three installments late;
- Having taken out an insurance policy together with the loan;
- Not having already suspended the loan payment;
- Don’t take advantage of discounts
How the suspension of financing works
Once the installments of a loan have been suspended, the payment of the main portion of the loan or mortgage in progress will be blocked for twelve months but interest will not be blocked. At the end of this period, the payment of the unpaid principal amount will be queued at the end of the loan, thus extending its duration.
Another possible option, as an alternative to the suspension of the payment of the installments of a loan is the renegotiation of the loan, that is, the remodeling of the loan in progress with a reduction in the amount of the monthly installments.
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