Refinancing Loan
What is a refinancing loan?
Refinancing allows you to take out a new loan to pay off existing ones, and request extra credit for personal use. Refinancing is available for a range of credit products, including Personal Loans, Car Loans, Credit Cards, and overdrafts.
Eligibility
To be eligible for a refinancing loan, credit facilities need to collectively meet the following conditions:
- They must have a lower balance than the maximum amount Revolut can offer you
- They should be granted by a bank (not by a non-banking financial institution), and reported to the Credit Bureau in Romania
- They should be granted in the local currency (RON)
- Minimum amount is RON 2,000
If you don't have a credit facility that meets the above criteria, you can apply for a personal loan with Revolut instead.
Transfer procedures for refinanced amounts
For credit facilities with Revolut, once your old loan is refinanced, you'll get the money right away. Your old Revolut loan will be closed as soon as the refinancing loan is approved.
For credit facilities from other banks, we'll transfer the funds as described below:
- For transferred amounts not exceeding RON 20,000, the transfer will be processed through a regular payment order
- For transferred amounts of RON 20,000 or more, the transfer will be facilitated by a conditional payment order
Regardless of whether the payment for the refinancing of a credit facility was made by regular payment order or conditional payment order, it's very important to contact the receiving bank as soon as possible to ensure that all the necessary requirements for the settlement of refinanced credit facilities are carried out. This includes ensuring the credit facility is closed and reported accordingly to the Credit Bureau.
You may continue receiving communications or reminders from us to settle your credit facilities until we can confirm through the Credit Bureau that the facility has been reported as closed.
What is a conditional payment order?
A conditional payment order is a bank document involving Revolut (acting on your behalf), you, and your bank. When you request this, according to your Credit Agreement, Revolut will send this order to your bank. This document directs them to transfer money to pay off your refinanced loan. If the conditions aren't met, the money will come back to Revolut to pay off your new loan.