How to move a loan from your current bank to others

If you have a loan with a bank and for some reason, you want to change banks or financial institutions, surely you are wondering if it is even possible. And the answer is yes. The refinancing service has always been available in practically all entities, although not all banks advertise how to move a loan from your current bank to others and we will have to ask at your new bank branch to find out if the process is possible.

If you go to an entity with this intention, they will analyze your profile and, if we meet the approval criteria, they will approve the credit. Thus, you can change your loan from one bank to another without problems.

The process of changing a loan from one bank to another will change depending on the type of entities that we go to, although in all banks the steps are very similar to requesting a new loan at another bank.

The usual steps to change a bank loan are as follows:

• Go to the new bank where we want to change the loan with our financial and employment data to request refinancing.

• The bank will analyze your profile and approve the credit change request.

• Sign the loan contract with the new bank.

• Cancel the current loan.

Now, you have to have in mind the following:

• • If the bank offers the refinancing service the new bank will deposit the money into your current bank and cancel the loan for us.
  • If the bank doesn’t offer the credit exchange service you must repay the current credit and cancel it.
  • You must deliver the proof of cancellation of the loan.
  • Once the loan is canceled, you will begin to pay the installments in your new bank.

Besides changing the loan, you must also take into account the transfer of other banking products such as payroll, cards, or any other product that you have contracted with the entity.

Wanting to change banks is logical and always advisable if you don’t agree with the conditions of the products you’re hiring.

If you are thinking of changing your bank consumer credit, you will also have to change the bank, the direct debit of our income, and, surely, other products that you have contracted with your current bank. To decide whether you are interested or not, the new bank should offer you at least one of the following characteristics:

• • Lower interest: If you are going to change your loan from one entity to another, the new credit must have lower interest rates. If not, there wouldn’t be a reason for changing from one institution to another.

• • Fewer linked products: Another important reason is that the new credit does not have (or has fewer) linked products that you must contract to access (except for a checking account to direct debit payments). Likewise, if you do have links, these should have fewer or no commissions than those we currently have.

• • Other banking products with better conditions: Besides these two advantages, another reason why you would be interested in changing banks is that the rest of the products that you want to contract (payroll account, cards, savings account, deposits, investment products) have better conditions than those that are offered from your current bank.

It is important to assess whether these advantages that the new bank will be able to offer you will be good enough to carry out the change. If the savings and the advantages that it provides to you compared to our current bank are large, then it will be an operation that will be worth doing.

Anyone with a current loan may request a change of credit at practically any other bank. The requirements to be able to change the loan is that you need to comply with the general requirements for applying for your loans, as well as that the loan you want to change has conditions (of amount, purpose, and term) similar to those offered by the new bank.

Of course, the essential requirement that all entities will require is that there has been no non-payment or delay in the collection of the monthly payments of the loan that you want to switch entities to.

Requirements that the new bank may request to change the credit:

To change a loan from one bank to another, the requirements that they will ask you will not differ much from those that will be requested to apply for a new loan:

1. 1. Have a stable income that allows you to meet the payment of reimbursement fees without unbalancing our economy.
   2. Have an employment contract for at least the duration of the repayment of the credit.
   3. According to the entity, they may request that you contract some type of linked product: direct debit, a credit card, payment insurance.
   4. To have 18 years old or more.

The process of changing a loan from one entity to another itself has no commission, so refinancing from one bank to another should be free. However, you may have to pay other fees during the process, but it depends on each bank.

Some may ask for a small part of the money that you have left to return or some type of commission.