What to do with the loan during the devaluation of the ruble

In anticipation of the depreciation of the Russian currency, so much expected by many experts, the owners of large deposits will have to think hard about the prospects for the preservation of capital. The more often they talk about the inevitable devaluation, the more disturbing the thoughts of investors. To understand what are the prospects of savings owners, you need to understand the features of the term, and how the devaluation will affect the existing loan obligations in various currencies.

 

What does devaluation mean?

What does devaluation mean?

Under the devaluation understand the decline in the value of the monetary unit in nominal and actual terms. The ruble is considered in relation to the currency of other countries. Currently, the Russian currency is steadily depreciating against the dollar and the euro.

The actual value of the devaluation is as follows: what was previously bought for 60 rubles, after some time, will require 120 rubles for payment. The scale of depreciation is directly related to the policies of companies engaged in the supply of foreign goods to the domestic market, and with the exchange rate of the ruble.

It should not be assumed that if Russians who do not feel the need for foreign goods will not face the negative consequences of devaluation. If a citizen is going to take a loan, he will face tougher conditions for lenders:

  • credit programs that are not secured with additional collateral or a guarantee guarantee are reduced;
  • offers of target crediting disappear without a down payment;
  • limits available for issue are reduced;
  • less benefits will offer the lender to its borrowers.

Often, when choosing a program, borrowers prefer to borrow foreign currency loans, since their interest rate is lower. Such behavior on the threshold of devaluation is especially dangerous, and causes serious financial losses in the event of a ruble weakening.

 

If you take a loan in rubles

If you take a loan

If borrowed funds are used in rubles, the weight of credit obligations during devaluation will become somewhat lighter. If a product is purchased for borrowed funds, the benefit is realized in the value of the product that was purchased before the price increase. It does not make sense to extinguish the deputy ahead of schedule, since there is no financial benefit in this. The longer you give the amount calculated under the same conditions, the lower the monthly installments due to the depreciation of the ruble.

Lenders are well aware of the risk of such a phenomenon, so they make a clause in the contract that allows periodically raising the rate when circumstances change. It is necessary to familiarize yourself with the loan agreement before signing, in order to understand whether the bank was insured, and what to expect during devaluation.

 

If the loan is in dollars

If the loan is in dollars

Unlike ruble loans, the consequences of taking a loan in a foreign currency are much more serious. Those who took a currency mortgage in 2014 will remember for a lifetime how dangerous such programs are if wages come in rubles. With the depreciation of the ruble, the credit burden increased many times, and the owners of mortgage housing were on the verge of losing property because they did not cope with debt obligations.

The greater the devaluation, the more serious the losses of borrowers who have risked processing a loan in foreign currency. Banks, faced with massive non-payment for such programs, were forced to restrict portfolios, withdrawing from them large foreign currency loans. Only a few of the Russian lenders retained credit programs in dollars or euros.

With the depreciation of the ruble and the growth of the currency of the loan will not save the favorable rate of the bank, and the only way out will be early repayment or refinancing with the transfer of debt into a ruble equivalent. Compared with the possible financial risks of devaluation, the interest overpayment on ruble loans is less serious.

Even well-known experts are not yet able to predict the growth of the exchange rate. Many are not the first year expect the collapse of the ruble to values ​​of more than 100 rubles per $ 1 and above. However, despite statements by financial experts, the situation remains relatively calm.

If you are going to take a loan in the period of devaluation, it should be borne in mind that the changed circumstances will directly affect the bank’s customer, but the risks of ruble obligations are less.

It is not recommended to issue loans in a currency that is going to rise in the near future. Much depends on the time for which the client takes the loan. If the amount is required for a short period, and there is a source of foreign exchange earnings, it may be more profitable to take the amount in dollars or euros.

While the country is in anticipation of change, experts make recommendations to take a loan before the collapse occurs, and part of the debt will be already paid. In this case, the bank will not have time to revise the rates, and the client will be able to get rid of the debt with the least problems.

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