What you should pay attention to now while applying for a loan from a bank - expert advice
Kyiv • UNN
In war conditions, it is important to consider additional risks when obtaining a loan, such as counting on the worst-case scenario, choosing stable banks, creating a reserve fund, considering loan insurance, assessing the stability of income in the long term, and discussing with the lender possible options for restructuring the loan.
In the conditions of war, there are additional risks while getting a loan in the bank. Co-founder of Ukraine's first fintech ecosystem Concord Fintech Solutions Olena Sosiedka in an exclusive interview UNN told what you should pay attention to in order to protect yourself from loss of funds.
In a volatile environment like the current situation, it is important to consider additional factors when making lending decisions. Here are some tips that can help in such an environment. Calculate for the worst-case scenario. Evaluate your ability to repay the loan in the event that your income decreases or unexpected expenses arise
Also, she said, if it is planned to get a loan in foreign currency, you should take into account possible fluctuations in the exchange rate.
To apply for a loan, Sosiedka advises to choose large and stable banks that can offer more stable conditions even in a crisis.
It is also worthwhile, according to the expert, to take care of creating a reserve fund for unforeseen circumstances, to be able to repay the loan during the emerging difficulties.
"Be careful with floating rate loans. In an unstable environment, a fixed rate may be safer," Neighbor emphasized.
It's also worth considering credit insurance against job loss or other force majeure circumstances, according to Sosiedka. She also advises assessing the long-term sustainability of your income and the outlook for the industry in which you work. For example, if your sector of the economy is particularly prone to risk, this is worth considering when making decisions.
Financial experts or economists who can provide up-to-date information and forecasts can also help with lending. You should also look for loans with flexible repayment terms that may allow you to temporarily lower your payments in case of financial difficulties.
It should not be forgotten that the country is mobilizing due to the war unleashed by Russia. This factor should also be taken into account when considering a loan, because if you are an entrepreneur, your employees may be called up for military service, which will affect the income of the enterprise.
If possible, transfer some assets to more stable currencies or securities to reduce currency risks. Keep abreast of changes in legislation that may affect loan obligations and terms. Openly discuss possible scenarios with the bank and agree on potential options to restructure the loan if the situation worsens
Recall
Earlier Elena Sosiedka told what to pay attention to when buying real estate abroad, which countries are better suited for investment and what risks such an investment carries.
