Loan Consolidation – Loan Unification and Consolidation
Loan consolidation is a financial product offered by banks and non-bank companies. Most banks in our market offer the possibility to unify loans. The conditions of individual banks vary. This means that products offer different conditions, and our comparison of online consolidation makes it possible to choose the best loan consolidation.
In the case of more financial liabilities, consolidating loans can be an appropriate and smart solution . During consolidation, all your loans will be merged into one loan. Instead of paying multiple companies, only one regular payment per company is paid.
People often refinance and consolidate . Refinancing is provided for one loan, while consolidation is for two or more loans.
Advantages of unifying loans into one loan:
- it is possible to save on monthly installments and interest and
- one has a better overview of finances .
- By unifying loans, a loan is created with better conditions than would be possible for a similar loan
Consolidation is often demanded by banks other than the current debt. Banks are always trying to acquire new satisfied customers, so they are willing to offer above-standard conditions for those interested in consolidation. Clients can get better terms, including a lower interest rate and a longer maturity, and a smaller monthly payment .
Different types of loans can be consolidated in loan consolidation – they can be merged:
- loans from bank loans
- non-bank loans
- credit card debt
- debt on overdraft
- debt from leasing
Banks offering consolidation:
Here is a list of banks offering online consolidation, merger, loan unification:
- Air Bank
Air Bank Loan Consolidation is negotiated for up to 10 different loans. These loans can range from $ 5,000 to $ 900,000 and the consolidated loan can be repaid from 6 to 120 months. For consolidation from 300,000 above, Air Bank has a favorable interest rate of 4.9% . But the downside is the lower chances of meeting a consolidation request, which currently accounts for around 20% of all applications submitted.
- Česká spořitelna
Česká spořitelna loan consolidation allows to consolidate up to 10 loans up to CZK 800,000 . The interest rate on this consolidation is 5.9% . Česká spořitelna allows the deferred payment to be deferred free of charge twice a year .
ČSOB loan consolidation will combine an unlimited number of loans of CZK 20,000 to 800,000 . The maturity period can be from 12 to 120 months and the interest rate starts at 4.9% . ČSOB’s consolidation is completely free of charge, and the repayment amount can be changed during the repayment period. The conditions for credit approval include the ability to repay and age.
- Equa bank
Equa bank consolidation can be arranged for an unlimited number of different loans. The scope of consolidation is between 50,000 and 700,000 CZK and a maturity of 12 to 120 months . Equa bank’s APR starts at 6.06% . The amount of monthly installments can be changed free of charge during repayment. Advantageous insurance of repayment ability can be arranged to consolidate Equa bank.
- Hello bank
Hello Bank Loan Consolidation is offered up to CZK 1,000,000 and with a maturity of 6 to 120 months . The interest rate ranges from 5.7 to 16.35% and the arrangement, management and early repayment of the loan is free of charge. The benefits of merging Hello Bank loans include setting up and negotiating a loan online . Consolidation may include bank and non-bank loans, overdrafts, and credit cards.
- Hypoteční banka
- Commercial Bank
Consolidating mBank loans can include up to 10 different loans up to $ 600,000 . The interest rate is 3.9 to 9.9% and can be reduced by up to 2% if repayment insurance is agreed to consolidate. There are no fees associated with the loan, but only loans that are repaid for at least 4 months are possible to merge. The maturity period is optional between 12 and 96 months .
- MONETA Money Bank
- Poštovní spořitelna
- UniCredit Bank
Many of these banks offer online consolidation and online consolidation calculators. One does not have to go anywhere and can imagine how the new merged loan will look and how much money it can save monthly.
As mentioned, non-bank companies can also offer credit consolidation under similar conditions to banks.
Non-bank companies offering consolidation:
Here is a list of non-bank companies offering non-bank online consolidation, merger, loan unification:
Cetelem’s loan consolidation made it possible to merge an unlimited number of loans up to CZK 1,000,000. The APR for this non-bank consolidation started at 6.06% and Cetelem’s consolidation did not require proof of income. The debtors register and eventual record also did not play a role. However, a few years ago, Cetelem turned into Hello Bank, which offers similar loan consolidation.
- Home Credit
Home Credit Loan Consolidation is arranged for up to 8 different loans up to CZK 600,000 . The repayment period is 12 to 96 months and the APRC is from 10.3 to 30.7% . It is necessary to prove sufficient income and good payment history for credit approval. A variety of additional services are offered to Home Credit Consolidation, allowing you to postpone repayments or change their amounts. Settlement, management and early repayment of the loan is free of charge .
Non-bank loan consolidation is much more affordable, the conditions for complying with a consolidation request are not so strict . On the other hand, non-bank consolidation does not offer such large limits on the amount of consolidated debts, as is the case with some bank loan unions.
Frequently Asked Questions
What is needed for consolidation?
Loan merger is subject to similar conditions as loan acquisition . You need to provide two different IDs, proof of income for the last three months, and an account statement. The creditworthiness is checked
What is the difference between consolidation and refinancing?
Refinancing is provided for one loan . The Bank will offer a better interest rate, or extend the maturity period, thereby reducing the monthly payment.
Consolidation is provided for two or more loans . Individual loans are taken and made into one big loan. By merging loans, interest may not be payable on each of them, thus saving in installments. At the same time, it will help make life easier, as it will no longer be necessary to keep track of all loans.
Who is consolidation for?
Any adult citizen can apply for consolidation. The bank must check the client’s creditworthiness even if it already has loans from other banks. The conditions are similar to the loan application. If the consolidated amount is high, a co-applicant – most often a spouse – may be needed.
Is there a limit on the number of loans for consolidation?
Banks are responsible for lending for consolidation. Some banks do not even have a limit . Much more common is the limit on the maximum debt for merging loans, which is usually in the hundreds of thousands.