How to apply for a credit vacation at VTB 24 in 2020

2024 Author: James Gerald | [email protected]. Last modified: 2023-12-17 14:00

Some banks are ready to provide the population with credit holidays, without waiting for an official Presidential Decree or the adoption of changes in the country's legislation. VTB 24 Bank was one of the first to respond. Find out how to order the service, what are the conditions for receiving it in 2020.

Presidential Decree on Credit Holidays

At the end of March, Russian President V. V. Putin addressed the country's population in connection with the difficult situation in the world due to the coronavirus. In order to prevent the spread of the pandemic, he decided to send the population of Russia for a long weekend.

The Russian leader informed people that the Government prioritizes the life and health of the country's citizens. Forced break in work will be compensated for by sick leave and salary retention.

However, according to the latest news, small and medium-sized businesses, especially in those industries that are under threat from the coronavirus, are experiencing difficulties not only with making a profit, but also with paying off loans.

The President of the country proposed several effective measures that would allow the state to help its citizens who are in dire straits due to the coronavirus pandemic:

• introduction by the end of this year of a new sick leave accrual system;
• adoption of a moratorium on debt collection and declaring bankruptcy proceedings;
• tax holidays, and in some cases a delay in the payment of social contributions;
• an increase in taxes on funds withdrawn from the country, as well as the introduction of a tax on interest on large deposits;
• credit holidays for six months in 2020 for individuals, small and medium-sized entrepreneurs who cannot pay off mortgages and consumer loans due to the coronavirus.

The latter circumstance provided for the appeal to banking structures of people who are really suffering hardships in 2020 due to problems in their field of activity. As reported in the latest news, the tourism and cultural sectors, transport, retail trade in industrial goods, entertainment and catering establishments are suffering serious losses.

The President instructed to develop measures to neutralize the negative consequences for small and medium-sized businesses and ordinary citizens by April 20, 2020. Banks should respond with actions regarding the introduction of credit holidays, without waiting for the adoption of the relevant Decree.

The latest news in Russia reports that as of April 1, the relevant amendments to the legislation were adopted by the State Duma in the second reading. This means that now banks have every reason to legally provide credit holidays to citizens and small businesses.

Conditions for obtaining

In the State Duma, the adoption of the draft law with amendments was prepared by people's deputies from different factions. Some of them gave clarifications on a topical issue. The law provides for the provision of credit holidays not to everyone, but only to those who will be included in a special list of victims of the COVID-19 pandemic in 2020.

At the same time, the possibility is not excluded that some banks will be able to meet halfway with the Government of the country and borrowers on mortgages and consumer loans, without waiting for the release of an official Presidential Decree. It is assumed that the preparation of changes in the regulatory framework will take a longer time. This is due to the need to amend various laws of the Russian Federation and consolidate them accordingly.

VTB 24, Sberbank were the first to respond to the President's appeal, who recalled that before the adoption of the official decree, the mechanism developed for the mortgage vacation can be used. You can provide a deferral for payments in case the income of an individual or an entrepreneur has decreased by 30% or more from the previous level.

It only remained to decide how to issue a deferral in 2020, bypassing restrictions on mortgage loans, until the official preferential program launched due to the global pandemic starts. At VTB 24, credit holidays are provided to the borrower, subject to the availability of a package of documents.

It is difficult to talk about the timing yet. The government adopted a law on deferring loans in the context of the coronavirus epidemic ahead of schedule. And how long the pandemic will rage, and for how long it will have to be postponed, depends on many factors.

How to apply for VTB 24

VTB 24 informed its depositors in detail about the conditions for granting credit holidays. Full deferral relies on a quarter only. In the future, the issue of prolongation of credit obligations will be considered on an individual basis.

It is the full deferral of payments that is issued, but for a quarter. At the same time, the client retains the right to use his insurance if he has it:

1. At VTB 24, the main criterion is precisely the level of income reduction for the client. To prove his difficult financial situation, it is enough for him to present a certificate from the tax office in the form of 2-NDFL.
2. The bank considers only applications in which the fact of a drop in income is documented, which is clearly reflected in the certificate issued by the Federal Tax Service. The potential decrease in the level of profit, which is only expected in the future, is not considered as a reason for obtaining a credit vacation at the present time.
3. A client of VTB 24 Bank can count on a postponement due to coronavirus in the future, if his profit actually decreases in the coming months. Once this happens, the client can apply for a deferral and figure out how to arrange it.
4. Another reason for a credit vacation can be considered the dismissal of a person to reduce staff. In this case, you will need the original work record book with the corresponding entry, a certified copy of the order or similar documents.

VTB 24 reminds that there are other ways and methods of how to arrange a grace period for some time to eliminate financial difficulties. For example, restructuring if there are objective reasons. The reason for this may be temporary disability, decree or conscription. You don't even have to think about how to apply if the bank has already met halfway, and such a service was provided for any possible reason.

Summarize

1. VTB began providing credit holidays immediately after the President addressed the country's population.
2. The reason is the real drop in the income of a citizen due to the coronavirus.
3. The client's hypothetical problems are not considered, but only those that already exist.
4. If you have a supporting document, you can get credit holidays after dismissal due to redundancies.
5. The bank reminds clients that there are other services that can minimize financial difficulties.