If you are facing difficulties in repaying your loans and credit cards, there are ways to overcome them.  The first step is to find out all the options available to you.

What you need to know:

What can I do if I am having difficulties in repaying my debts?

You can apply for debt settlement. Depending on your needs, we will work out a payment plan that corresponds to your current financial situation. To review your loan or credit card settlement, we do not place any limits to the extent of your financial hardship.

What debt categories are included in the solutions available to me?

The Bank aims to help you settle all your debts. You can choose to settle your loans (consumer or mortgage), your credit cards or any other debts. Depending on your financial/demographic profile, we will go over all the solutions available to you, such as extending the loan term, or paying just the interest or a fraction of your instalment for a specific timeframe. Our common goal is to come up with a realistic settlement for all your products.

When can I contact the Bank?

As soon as you are facing or are about to face difficulties in meeting your repayments. No matter if the problem is temporary or more permanent, there are solutions available for all cases. And even if the problem extends beyond the settlement term, the Bank will review your application again.

Is the debt settlement process complex?

Not at all. In the majority of cases, you will need to visit the Bank branch twice: once to submit the supporting documents and a second time to sign the loan and/or credit card settlement agreement.

What supporting documents will I need?

You must bring with you your current financial information (latest income tax return/E1 form, E9 form or property tax form) and any other documents proving your inability to meet your financial obligations (unemployment card, medical certificates, etc.). If we ask for any further documentation, it would be so that we could substantiate your inability to pay.

Are there any examples to help me better understand the options available to me?

Example 1ο

A customer owes €100,000 on a loan that ends in 15 years from now and the monthly instalment is approximately €800, which repays interest and capital.

  • With a loan settlement, the loan term may be extended to 25 years and the monthly instalment would be approximately €595, which repays interest and capital.

  • If the customer only pays interest for the first year of the 25-year loan, the instalment would be approximately €430. After the end of the interest-only repayment term, the instalment would be about €605 for the remaining 24 years.

Example 2ο

A customer owes €8,000 on a consumer loan that ends in 4 years and another €5,000 on a credit card. They pay a total of €390 monthly for both (assuming that the interest rate on the credit card is 16% with 2% minimum instalment and the interest rate on the consumer loan is the BCR).

  • With a loan settlement, the debt may be refinanced through a the new 6-year loan (BCR interest rate) and the instalment would be €250.

  • This reduction is possible for two reasons. Firstly, the interest rate for the credit card will drop, since the credit card debt will be transferred to a loan, and secondly, the loan term will be extended.