An application for remission of interest is a document that will be useful if you are unable to pay off your debt. In this article, you’ll learn some tips to help you prepare your interest remission application accordingly.
In what situation will the application for interest remission be useful?
When taking out an installment loan, you usually incur additional costs associated with granting the loan. Capital interest is one of the basic costs. In short, it is the interest rate on the loan, i.e. the payment to the lender for granting the loan. It is also worth noting that when there are delays in repayment of the loan, penalty interest may be charged.
Penalty interest is up to 7% per annum, so very often debtors are able to cope with paying off additional interest. At the same time, it can be a big challenge for people in financial difficulties. The problem begins especially when the interest relates to several loan installments, especially if the installments are large.
In this situation, you can write an application for interest remission.
How to write an application for interest remission?
It is worth noting that the application for interest remission should be written individually. It is better not to use ready-made templates from the Internet, because applications written in person are more personal, which increases the chances of their positive consideration.
In addition, the application should include some key information. There must be space for basic information, such as details of the debtor, creditor, information on the loan to which the application relates. Also:
– It is worth including information on the sum of debt and the amount of penalty interest that arise from it.
– It is good to substantiate the application for interest remission, e.g. in a difficult financial situation.
– Goodwill and willingness to cooperate should be demonstrated, e.g. by ensuring timely repayment of remaining installments or inviting negotiation of repayment terms.
– It is worth adding attachments that will confirm the credibility of the application and a request for its positive consideration.
It is also worth remembering that the creditor is not required to positively consider the application and whether he accepts it depends on his good will.