moratorium on a loan

What is and how is a loan default requested?

The crisis caused by COVID-19 has put our financial system to the test. In such a way that many people have gone through real financial difficulties. There have been cases of people who have lost their jobs or reduced their activity, which has meant a reduction in their income. What to do if there are outstanding debts with the bank? Requesting a moratorium on a loan is a formula that can be helpful. We tell you what it is and how it is requested.

What is the moratorium on a loan?

It is a measure that is governed by Royal Decree Law 11/2020 , of March 31 and that arises in response to the situation caused by COVID-19. It is intended to serve as a relief for people who have a loan, and thanks to which they can get 3 months off. The moratorium includes both loans and credit card fees. That is, everything that involves the payment of installments periodically . Both individuals and business professionals tend to take advantage of the moratorium on a loan. The moratorium on a loan has the advantage of not accruing interest.

How can you qualify for a moratorium?

To be eligible for the moratorium on a loan as a holder, you must be in one of these situations:

  • Being or having been unemployed. If you are a professional, demonstrate a billing loss of 40% of income.
  • The income of all members of the family unit must not exceed the month prior to the request for the moratorium; and in general, the limit of 3 times the monthly IPREM. As a general rule, they are 1613.32 euros.
  • The installment of the loan term, along with basic expenses and supplies. It is equal to or greater than 35% of the net income received by all the members of the family unit.

What does it take to request a loan forbearance?

To request a moratorium on a loan we must have the following documents ready to prove our difficulties.

Unemployed persons : certificate from the benefit entity. In which the monthly total received in concept of unemployment benefits or subsidies appears.

Self-employed workers : certificate issued by AEAT or the competent body of the corresponding autonomous community. On the basis of the declaration of cessation of activity declared by the interested party.

In the case of family groups , it is necessary to demonstrate the number of people that make up the family group

  • Family book or domestic partner document.
  • Certificate of registration.
  • Declaration of dependency disability, or permanent disability.

Other aspects to consider

  • Any banking entity must offer the possibility of a moratorium.
  • If the client properly submits the application and documentation and meets the requirements. The moratorium applies without the need to wait for any approval.
  • If you do not meet the requirements to apply the moratorium; but you are going through financial difficulties when making your payments. You always have the possibility of agreeing with your bank some type of measure to be able to facilitate payments. For example, a grace period, in which nothing is paid or only part of it for a while, or lengthening the terms and being able to reduce the fee. Never stop paying, there are alternatives so that you do not see yourself on a list of defaulters.

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