Advertisements
On March 16, FEBRABAN (Brazilian Federation of Banks) announced measures to mitigate the impacts of COVID-19 on both the economy and the lives of millions of Brazilians.
And among the various measures, we must highlight the one to extend the payment of your loan.
Thus, these measures were applied to the five main and largest Brazilian banks, Santander, Bradesco, Caixa Econômica Federal, Banco do Brasil and also Itaú.
However, the idea of extending loan payments has been generating significant doubts and criticism, which consequently leaves consumers feeling lost.
So, follow us to see how this extension is actually working, as well as its advantages, disadvantages, and whether it's really worth it.
Advertisements
Finally, we will mention how it is possible to carry out the extension.
How the extension is working
Well, in the FEBRABAN statement, customers were informed that the five largest banks agreed to extend the maturity of loan installments by 60 or 90 days.
But, as mentioned in the introduction, many were left with doubts about how it would work.
Basically, according to this extension, the installments that are suspended must be added to the end of the contracts.
And a fundamental point is that the value is maintained and that there are no additional fees or interest.
However, most consumers say that this is debt refinancing, meaning that banks take the value of the installments that the customer requests to extend and add the accumulated value to the principal amount.
In this way, some interest is added to the value of future installments, a feature that has led to criticism of banks.
And in addition to interest, the opportunity to extend your loan payment is only available for current contracts.
That is, defaulting individuals cannot apply.
Therefore, it is clear that it is an alternative full of complications, but it can be useful for some.
Is it worth requesting an extension?
Among the various issues related to the topic, many wonder whether it is really advantageous to resort to an extension.
In view of this, we must tell you that regarding the advantages of extending your loan payment, there is no need to pay fines and you cannot be negatively impacted in the process.
As for the disadvantages, the main point is the possibility of an increase in interest rates.
Therefore, unfortunately, we cannot simply say whether it is advantageous or not, given that the alternative has its benefits and drawbacks and there are very specific cases of consumers.
Therefore, the extension will depend on each client’s situation.
However, it is best to only extend it if the need is immense or extremely important.
Also, be aware of the interest that the institution tries to charge with the extension.
Otherwise, continue paying your installments without requesting this option.
How to extend your loan payment
Finally, let us explain the process by which you can extend your loan payment:
Well, generally speaking, the first step is to contact the financial institution and request an extension.
One point worth highlighting is that most institutions have started to improve their online service precisely so that customers avoid visiting branches.
Therefore, access the app or website and request the service, as well as always be aware of the interest that may be included in this transaction.
Therefore, please wait until the institution approves your request.
Also learn how to extend your Bradesco payment.
