Difficulties in repaying a loan

Credit history has a direct impact on credit terms and, in some cases, delays in making payments on time under a loan agreement can limit your access to credit in the future, so we urge you not to be discouraged if you encounter difficulties – working with a bank specialist can help you avoid the consequences of defaulting on your loan.

The first step is to carefully assess the situation, as well as your personal or family financial situation, i.e., your income, expenses and financial commitments, and the money you have left for your daily needs. Then you should look at ways to reduce your spending or change your lifestyle, establishing a discipline that will help you to spend less or earn more.

As soon as possible when you experience or anticipate significant financial difficulties that may affect repayment, such as reduced income, unemployment. Discuss the current situation and planned course of action with the bank’s specialist and, if the bank asks, provide the necessary documents (e.g., proof of income) for an objective assessment of the situation and for finding the most appropriate solutions. If an amendment to the terms of the loan is agreed, an amendment to the loan agreement will be signed.

If you are facing financial difficulties in repaying your housing/real estate loan, we usually offer the following options:

• Changing the date of payment of the repayment instalment (the date of receipt of wages, benefits or other income may have changed, and this is causing/may cause a delay in payments).

• Loan deferment (when it is agreed that, for a certain period, the client will be paying only the interest on the loan. Loan deferment for up to 6 months is possible if at least one of these circumstances exists: the marriage of the borrower is dissolved; the spouse of the borrower dies; the borrower or his/her spouse becomes unemployed; the borrower is recognised as unable to work or partially able to work in accordance with the procedure laid down in the Law on Social Integration of the Disabled of the Republic of Lithuania; and in other circumstances).

  If you are unable to make your loan repayments for reasons other than those listed above, you are welcome to contact the bank’s specialists to assess with them whether deferring your repayments would be an appropriate solution.

• Changing the repayment method (changing the payment method, e.g., from a linear to an annuity, thus reducing the monthly repayments).
• Extending the repayment period (to reduce monthly repayments if the loan is not for the maximum possible term).

If you are facing financial difficulties in repaying your consumer credit, we usually offer the following options:

• Changing the date of payment of the repayment instalment (the date of receipt of wages, benefits or other income may have changed, and this is causing/may cause a delay in payments).

• Loan deferment (when it is agreed that, for a certain period, the client will be paying only the interest on the loan. Loan deferment for up to 3 months is possible if at least one of these circumstances exists: the marriage of the borrower is dissolved; the spouse of the borrower dies; the borrower or his/her spouse becomes unemployed; the borrower is recognised as unable to work or partially able to work in accordance with the procedure laid down in the Law on Social Integration of the Disabled of the Republic of Lithuania; and in other circumstances).

  If you are unable to make your loan repayments for reasons other than those listed above, you are welcome to contact the bank’s specialists to assess with them whether deferring your repayments would be an appropriate solution.

• Extending the repayment period (to reduce monthly repayments if the loan is not for the maximum possible term).

If you are having trouble making your vehicle lease payments, we usually offer the following options:

• Changing the date of lease payments (the date of receipt of wages, benefits or other income may have changed, and this is causing/may cause a delay in payments).

• Deferment of lease payments (when it is agreed that, for a certain period, the client will be paying only the interest on the leasing. Lease payments may be deferred for up to 3 months if at least one of these circumstances exists: the marriage of the borrower is dissolved; the spouse of the borrower dies; the borrower or his/her spouse becomes unemployed; the borrower is recognised as unable to work or partially able to work in accordance with the procedure laid down in the Law on Social Integration of the Disabled of the Republic of Lithuania; and in other circumstances).

  If you are unable to make your lease payments for reasons other than those listed above, you are welcome to contact the bank’s specialists to assess with them whether deferring your lease payments would be an appropriate solution.

• Extending the term of the leasing agreement (to reduce monthly instalments if the original leasing term is not the maximum possible term).

For clients who are called up for permanent compulsory initial military service, the following measures may be applied at the client’s request:

• Loan deferment and/or extending the maturity of the loan (when it is agreed that, for a certain period, the client will be paying only the interest on the loan, and/or the maturity of the loan is extended to reduce monthly loan repayments.

  In the case of housing/real estate loans, it is also possible to defer interest to be paid immediately at the end of the period of permanent compulsory initial military service, or to defer interest to be paid at the end of the period of permanent compulsory initial military service according to a new interest payment schedule.

  Conscripts who will perform compulsory initial military service and who wish to change the terms of their existing agreements must first provide the bank with certificates from the regions that have called them up, confirming that they are, in fact, assigned to military units and will have to undertake 9 months of military service. The application and certificates must be presented at a bank branch before leaving for military service).

Moving away may increase the likelihood of financial difficulties and make it more difficult to communicate directly with the bank, so we recommend:

• arrange for a power of attorney to a trusted person so that the authorised person can arrange for the restructuring of the loan in case of unforeseen circumstances. You will also need to present the power of attorney and the contact details of the authorised persons to the bank specialist.
• Make sure you have sufficient funds in your bank account on the day of the loan payment to cover the payments. Also, it is always a good idea to keep a slightly higher balance in your account than is needed to cover the amount of the loan, in case a change in the instalment rate (e.g., due to a change in EURIBOR) means that you will not be able to access the updated repayment schedule for a while.

If you have a loan manager assigned to you, you can contact them directly. If not, you can always reach us by telephone to 1813 (+370 37 301 337 for calls from abroad) or by email to info@sb.lt. If you prefer a face-to-face meeting, visit the nearest customer service unit; the list of units is available here.