- What not to do when there is a delay?
- What measures should MFIs apply to defaulters?
- Current restrictions on debt collection in MFIs
- How to behave the debtor?
- Microcredit prolongation
- Restructuring microcredit
- Take a long-term microloan secured by property
- The settlement of the issue in court
- Conclusion
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You do not know what to do in a situation if there are a lot of loans in MFIs, but there is nothing to pay? This is a common problem. Borrowers get into debt bondage when they overestimate their financial capabilities when they apply for their first microloan, or are unable to pay a microloan in time because of problems with work or health.
Trying to pay off one microloan, these people take the next loan, getting more and more bogged down in debt. Once the volume of these payments is impossible, and the person loses the opportunity to solve this problem on his own.
What not to do when there is a delay?
In order to solve a problem with minimal losses, it is important to behave correctly in this difficult situation. Regardless of the nature of the person and the causes of arrears, the majority of debtors behave in this situation about the same:
- borrowers alone try to make small amounts as possible to repay the loan, regardless of interest and penalties charged;
- another category of debtors in every way avoids communication and refuses to interact with security personnel.
Both options do not guarantee a solution to the problem - under the terms of the loan agreement, the MFI has the right to charge penalties and fines on the amount of debt, while continuing to calculate interest on microloans.
Accordingly, the volume of debt obligations increases exponentially, and the person finally loses the chance for a favorable outcome for the case.
What measures should MFIs apply to defaulters?
Microfinance companies operating within the legal framework have the right to:
- remind the borrower of the repayment period of the microcredit;
- notify him of the presence of overdue debts by phone, come to the debtor to the house to resolve the situation;
- transfer debt obligations and all information about debtors to collection agencies;
- file claims in court and settle issues in accordance with the norms of Russian legislation;
- to resort to accrual of fines and penalties.
With a delay of more than 90 days, borrowers are blacklisted defaulters. Their credit history turns out to be hopelessly flawed, and it is almost impossible for these citizens to get a loan or loan in the future. 
Current restrictions on debt collection in MFIs
Experts strongly recommend that you seek financial assistance only in legal MFIs. These organizations operate under the strict control of the Regulator and strictly comply with its requirements:
- The permitted amount of penalties is not more than 20% per annum (0.05% per day) of the amount owed.
- Starting from the 101st day of delay, the interest on the amount of the debt is additionally calculated at a rate of 0.01% per day.
- The maximum amount of debt can not exceed three times the volume of the body of the loan.
- MFI security personnel are not allowed to threaten a borrower and his family members with physical violence, to blackmail and intimidate a person.
- Calls at night, damage to personal property, threats of any kind are illegal, as well as excessive fines and interest, leading to an excessive increase in debt.
Information about the debtor is transferred to the collection agency no earlier than 30 days after the expiration of the contract term — up to this point employees of the creditor company will communicate with the client.
How to behave the debtor?
If a person has made a delay, it is advisable to immediately contact an employee of a microfinance company, explain the situation and name the estimated payment date. MFIs at least borrowers are interested in the peaceful settlement of the problem, so the probability of finding a compromise at the initial stage is very high.
The decision in each case is taken personally - the operators will prompt the best way out if the person is really interested in solving this problem.
Employees can provide the debtor with a delay for a short time (2-5 days). In some situations, MFIs even agree to freeze interest for this period. But if the terms of the agreement are again violated, interest and penalties for these days are charged in full.
Microcredit prolongation
The easiest and most affordable way to defer payment is to issue a microcredit extension. This service for borrowers who find themselves in a difficult life situation is provided by almost all MFIs.
The rules for the renewal of a microloan in each MFI may differ - the exact conditions are written in the official documentation on the website and in the personal loan agreement:
- In most MFIs, the rollover service is provided free of charge, provided that the borrower has previously repaid the interest already accrued.
- In other companies, customers are additionally charged a one-time renewal fee (1-3% of the amount owed).
- There is a third category of MFIs that, when they are prolonged, automatically increase the lending rate - i.e. a fee is charged for each day of a microcredit renewal.
The repeated extension of urgent microcredits is allowed. The maximum number of extensions is limited by law - no more than seven in 2018, and no more than five - starting in 2019.
To activate the service, it is enough:
- select the option “Extend a loan” in the personal account of the borrower;
- indicate a convenient payment option for accrued interest (from the card, via self-service terminals, from an e-wallet account, etc.);
- pay the accrued interest (the amount is calculated automatically);
- confirm the operation in the LC.
For a client, a deferred payment is the best way to solve a debt problem. Prolongation gives a person an additional opportunity to find the right amount, to avoid delay and not to spoil their credit history.
The extension of microcredits is also beneficial for the lender, since in this case the client voluntarily pays interest for all days of using the borrowed funds. In addition, by showing loyalty to borrowers, MFIs encourage them to contact this service again.
If a person has more than 2-3 open microloans, a deferment of payment will not only not solve his problem, but will even more aggravate the situation.
The debtor will be forced to pay interest, but it will not be able to repay loans in full. In this case, he will have to find another way out.
Restructuring microcredit
If a situation when a client has issued many loans in MFIs, but there is nothing to pay, has arisen for a good reason, then he has the right to apply to the organization for debt restructuring.
To do this, you will need to write a statement stating the reasons for the delay, and attach certified copies of supporting documents proving the claimant’s veracity to it.
Good reasons are:
- health problems: serious illness, trauma, long hospital treatment, etc.
- loss of employment through no fault of the borrower (due to reduction, disability, etc.)
The application must be sent by registered mail with notification to the postal address of the creditor company. It will be considered by a special commission and, if found to be valid, the borrower will be offered acceptable options for installment payments or deferred payment.
In this case, an additional agreement is concluded, in which the new conditions of repayment are stipulated. Current interest from this point is not charged. If a person violates these conditions, the penalties imposed by the service rules will be applied to him again.
Take a long-term microloan secured by property
You do not know what to do if you have nothing to pay the loan? We advise you to try to get a loan in a bank or to take a long-term loan on the security of your property, or under the guarantee of an individual.
Such microloans provide MFIs “Profi Credit , Glavfinance, Center for Loans and some other companies. The interest on long-term microcredits starts from 0.24% per day (for term loans 2-2.2% per day), the maximum available amount for individuals is up to 1 million rubles.
The borrower will be able to repay the debt in equal installments, not burdensome for the family budget - once a week or once a month.
As a pledge can act:
- residential and commercial real estate;
- cars;
- land.
For registration of a microloan, you will need to personally visit the MFI office and provide documents confirming the ownership of the collateral.
If the person provides collateral or a guarantee to third parties, he may try to apply for a bank loan to refinance existing debts.
Such services are provided by some credit organizations: Tinkoff Bank, Touch Bank, Vostochny Bank. The rate in these institutions is higher than in conventional banks, but for the borrower this offer is more profitable than overpaying for the renewal of microloans in MFIs.
If you take a loan or a loan to pay off existing debts, you can turn to a private lender - but it should be borne in mind that in this case there will be much more risk, and the overpayment will be much higher.
The settlement of the issue in court
When it is not possible to find mutual understanding between the lender and the borrower, the possibility of judicial settlement of the issue remains. You should not be afraid of such a development of events - the activity of the MFI is under the control of the Central Bank of the Russian Federation. The regulator prohibits organizations from exceeding the established rate of interest and the amount of debt. In this case, the borrower will be sure that the issue will be resolved in the legal field.
Thus, for term loans taken until 2016 (inclusive), the MFI does not have the right to calculate interest after the expiration of the contract period. Has been precedent, when the Supreme Court ordered the MFI to reduce the amount of recovery to an amount commensurate with the loan body.
In addition, it must be remembered that a creditor company can initiate litigation only if it has an official registration in the State Register of MFIs. Each borrower can check information on participants in the microfinance market on the official website of the Bank of Russia.
If the organization does not have permission to conduct microfinance activities, the borrower can file a claim with the court, and the debt is canceled.
In addition, the plaintiff has the right to challenge the claim amount if it proves that the contract contains enslaving conditions and does not meet the requirements of the current legislation.
Referring to the difficult financial situation, the debtor is entitled to submit supporting documents to the court and apply for installments (deferment) to pay the debt, or initiate a bankruptcy procedure for an individual.
If the court recognizes the correctness of the creditor, the debtor will be arrested the property for this amount.
Bailiffs will be engaged in collecting the debt, but when:
- bailiffs are not able to find a debtor;
- the person has no official job;
- There are no funds and current receipts in the accounts;
- there is no property to be described,
then the collection of debt is temporarily suspended, and in fact - the debt is recognized as “hopeless”.
Thus, in some cases, the trial will be an acceptable option for a person who does not have a chance to repay a debt in an MFI.
Conclusion
If you find yourself in such an unpleasant situation, we strongly advise against bringing the matter to the transfer of debt to a collection agency, since their methods of collection cause a lot of complaints from citizens.
In a situation where collectors use illegal methods of pressure on the debtor, be sure to apply with the prosecutor's office and the police. But remember that if microcredit was taken in a legal MFI, it will not be possible to avoid repayment.
If there are a lot of loans in MFIs, but there is nothing to pay, we advise you to retake the necessary amount in friends or relatives, or resolve the issue peacefully, having agreed with the credit manager about the installment payment.
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What not to do when there is a delay?What measures should MFIs apply to defaulters?
What not to do when there is a delay?
What measures should MFIs apply to defaulters?
How to behave the debtor?
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