Skip an installment with flexible loan
A flexible loan can allow the debtor to skip an installment or change the amount based on his needs. When a customer turns to his bank for a loan, he must be well aware of the financial commitment he will face. Of course, he will be able to satisfy his own needs with the sum received, but he will also have to reimburse it in a certain subsequent period, also considering the interests. For this reason, banks should be very transparent in the description of the amortization plan that awaits the client.
Flexible loans, along with other options such as early repayment or renegotiation, are a solution to deal with a change in our financial resources. By accepting a loan of this kind, in fact, we are aware of the opportunity to modify some of its characteristics, so that they become more sustainable. This is a proposal that many banks now offer to their customers, but which is particularly used by online financial companies, which tend to guarantee more flexible conditions on their loans.
The first possibility concerns the repayment terms of the installments. The most common solution among the various banking institutions, even those online, is to suspend an installment and delay payment at the end of the agreed repayment period. Concretely, this means that the customer can also request to suspend the payment of an installment, but will still have to pay it after having recognized all other payments for reimbursement to the bank.
Another flexible loan opportunity is to renegotiate the duration of the loan. This is one of the possible ways of renegotiating the loan: in this way, it is possible to extend the final repayment term. The logical consequence is that the same figure to be returned is spread over a longer period and therefore the individual installments will be less expensive. The flexible loan therefore makes it possible to face a difficult period, but lowering the installments to be paid.