A loan, whether for consumer or real estate, can sometimes require a boost when its amount is found to be less than the project’s financing need. Since all credits cannot be extended, several solutions exist today to make up for this lack of funding.
Increase an existing loan
When a loan is taken out, its amount is studied beforehand in order to correspond to the borrower’s need for financing for the realization of his project.
As a result, the borrower has the resources necessary for its successful completion, but the latter may sometimes encounter difficulties leading to a greater need for financing.
Consequently, the borrower will seek to supplement this financing by various means such as requesting an extension of credit from his bank. However, this extension is only eligible for certain types of so-called revolving credits (formerly called “revolving”) and does not allow the borrower to increase the amount of his loan as he would like.
Different ways to increase the amount of your credit
If the extension of credit is not feasible, other solutions can be presented to the borrower to increase the amount of his credit.
Thus, the borrower can use additional credit to complete the financing of his project. This loan will be determined according to the financing need of the project but also according to the borrower’s debt, the latter should not be too large.
In fact, if the borrower’s indebtedness is too high, he will not be able to take out new credit and will find himself blocked in the realization of his project.
However, even if the borrower’s debt is high, the borrower can resort to credit consolidation.
This operation will allow the borrower to combine all of his debts (mortgage, construction loan, car loan, etc.) into a single loan with only one monthly payment. This monthly payment may be reduced in return for an extension of the duration, allowing the borrower to reduce his monthly charges.
More specifically, this operation will allow the borrower to reduce the amount of his monthly payments in exchange for a longer repayment. Also, the borrower can complete this operation with a financing request allowing him to increase his budget for the realization of his project.