Is it possible to redeem my zero interest loan?
Credit redemption is a financial transaction that consists of consolidating your current loans into a loan with a single monthly payment to optimize your budget. The main purpose of borrowers is to benefit from lower monthly payments and a lower interest rate. This operation can include consumer loans and real estate loans. Still, the PTZ is not a classic home loan. In fact, it is a complementary loan to your main mortgage. This is a no-cost, no-interest loan that is intended for the acquisition of a principal residence. An explanation over at http://dmsband.org
Interest is borne by the State. In other words, the bank receives financial assistance from the State which makes the operation of redemption of credits integrating the PTZ more complicated. Of course, your bank has no interest in transferring this aid to another institution. However, the borrower who plans to redeem his credits has two solutions.
Exclude PTZ from your group
If you want to keep your zero rate advantage, you can exclude this loan from the credit buyback transaction. Thus, you reduce your debt level, you benefit from a lower monthly payment but at the same time you always have the opportunity to enjoy your loan without interest. Yet, in practice, it is not always easy. You have to check if you have the right to prepay your other loans without the PTZ. In addition, quite logically, banks are often reluctant to keep only the zero rate loan because they prefer the borrower to repay the priority. As a general rule, all mortgages must be repurchased “unless specifically requested by the borrower”.
You have the legal right to request in writing the early repayment of your principal loan and keep the loan at zero rate. Note that you must mention the PTZ when requesting a credit surrender for the calculation of your debt level. It must be taken into account that you will have at least two monthly payments: the PTZ and the new credit. Namely, if your debt level exceeds the 33% mark the lending institution may deny you a credit surrender without the PTZ.