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Banking, payment difficulties

About banking 

What can I do to protect my family from the loss of income?

Loss of income, loss of employment or uncertainty about the future may threaten any family. It is therefore important to have a good overview of your or family's income and expenses, loan liabilities and repayment deadlines, and to consider carefully which expenses can be postponed or cancelled, to survive this difficult period. If you have maintained your income, and it is currently possible, some funds should be set aside for even harder periods to cope with unexpected situations. It would be good to have a financial buffer or some funds for peace of mind which would cover at least 3 months' expenses, but any amount would soften the impact if an unexpected cost is called for, or due the crisis, income is reduced. Additional information: https://blogi.fin.ee/2020/03/3-lihtsat-sammu-mida-teha-rahaliste-raskuste-uletamiseks-ja-valtimiseks/

Do I have to make the monthly payments on my loan and/or lease while I am on mandatory, unpaid leave?

Yes, you do. In consumer credit contracts, force majeure is not an impediment to fulfilling your financial obligations. If there are foreseeable losses in income, you should definitely get in touch with the service provider as soon as possible. For example, some banks offer grace periods.

 

Payment difficulties 

What is a grace period (debt standstill) and when can I use it?

Grace period or debt standstill is an agreement with the bank not to repay the principal contributions of the loan during a certain period. Depending on the type of loan and the agreement with the bank or the lender, this may also mean a period of grace from interest payments (e.g. if the income is completely lost). The amount of deferred payments shall be allocated to the rest of the loan period, if necessary, the term of the loan agreement shall be extended. Other terms of the loan agreement are not changed. The duration of grace period is usually 3-12 months for mortgages, 3-6 months for leasing and consumer loans. No service fee is usually charged, or a reduced service fee is charged for contract amendment for grace period. In some cases, depending on the bank's policy, costs may be added in the form of fees for changing the contract. In specific cases, customer-specific distinctions are allowed. If you are already late with the repayment of the loan and have therefore violated the terms of the contract with the lender, the lender may also refuse the grace period. Grace period or debt standstill can be agreed with the lender and is usually due to temporary income reductions. To explore your options, please contact your lender(s). Additional information (in Estonian): https://www.minuraha.ee/et/pangandus/laenud/makseraskustes-kaitumine.

What should I do if I have fallen behind my loan, lease or instalment payments?

The most important thing is to address the problem immediately and contact the loan provider or the leasing company. You need to act fast before the indebtedness occurs, it will provide a good ground for reaching an arrangement. Also, it is important to take note your credit history would remain positive, and no notices will be included to the Estonian Credit Register. Additional information: https://minuraha.ee/et/pangandus/laenud/makseraskustes-kaitumine

What should I do I am if I not able to make loan repayments due to a loss of income?

If the loss of income may cause difficulties in loan repayments in due time and in full, contact your loan provider immediately. Quick action before the indebtedness occurs allows good grounds for reaching an arrangement. Also, it is important to take note your credit history would remain positivite, and no notices will be included to the Estonian Credit Register. Additional information: https://minuraha.ee/et/pangandus/laenud/makseraskustes-kaitumine.

How do I know what my insurance covers?

The terms of the insurance are provided in the insurance contract, which also indicates the insurance coverage and duration. If any misunderstandings occur, contact your insurance undertaking (if you have signed the contract through an insurance broker or intermediary, you may also contact them). More information can be found here (in Estonian): https://www.minuraha.ee/index.php/et/kindlustus/probleem-kindlustusega

What kind of debt-relief is available for individuals who have taken out a small loan? What kind of debt-relief is available for individuals who have taken an instant loan or a SMS-loan?

Grace period is available for clients with decreased solvency. The amount of deferred payments shall be added to the remainder of the loan period, and if necessary, the term of the loan agreement shall be extended. Other terms of the loan agreement will not be changed. Usually service fee is not charged when concluding the contract for the grace period, or lower-than-usual fee is charged. In specific cases, customer-specific derogations can be applied. For consumer financing, small loans and leasing finance, the duration of the grace period is usually 3-6 months.

 

Last updated: 15 June 2020