It takes place with the agreement of both parties to the loan agreement. Perolpe may refer to the extension of the repayment of part or all of the bank loan.
Prolongation of the loan may be associated with an increase in its total amount or adding to it a fee for extending the cash loan repayment date. The borrower should also remember that he will be required to pay the next fee. The expenditure of several hundred zlotys (depending on the Bank’s Table of Fees and Commissions) is associated with the creation of an annex to the loan agreement.
credit history. Periodic cooperation of a given entity with a banking institution has a great influence here. It is important whether the borrower settled the obligation on time. If he is late with even one installment, the bank may not agree to extend the repayment period.
The justification written by the borrower has a significant impact on the bank’s decision. If he is in a difficult financial situation, which may lead to a spiral of debt, he should attach appropriate confirmation to the document. For example, if he lost his job, he may be entitled to terminate the contract. However, if he suffered a serious injury, he should attach documentation from the hospital. Such documents may contribute to the bank’s positive decision.
A loan grace period is a term that specifies the possibility of suspending the payment of part of the installment. The borrower may apply to the bank for suspension of the capital part, however the interest part should still be regulated within the periods specified in the loan agreement. As with credit renewal, the grace period also depends on the person’s credit history and the timeliness of repayment of previous financial obligations. It should be taken into account that banks usually agree to a grace period of min. 12 months after the loan has been repaid.
|Credit Prolongate||Credit grace period|
|Temporary suspension of repayment||❌||✔️|
|Extending the loan period||✔️||❌|
|Granted at the borrower’s request||✔️||✔️|
|The interest part is still paid on time||❌||✔️|
|Concluded in the form of an annex to the loan agreement||✔️||❌|
The table above presents the basic differences between two products related to a bank loan. As you can see, grace and prolongation are concepts that have one thing in common. Both banking products are granted at the borrower’s request.