Author: James Roy
Author of articles and research on cryptocurrency and stock markets. He has practical experience working with financial instruments and trading both crypto and equity assets.
Research updated: September 18, 2026.
Short answer: where is it cheaper to get a loan to repay another loan?
If the goal is to repay an existing loan and reduce the total cost of debt, I would start by comparing Sense Bank’s dedicated refinancing product with standard cash loans from Credit Agricole and PrivatBank. The reason is simple: based on the published terms I reviewed, these products are among the lower-cost options in the sample when measured by the effective annual percentage rate.
Sense Bank offers a dedicated refinancing product for loans issued by other banks: UAH 5,000 to UAH 500,000 for 6 to 60 months, with a fixed nominal rate of 30–49% per year and no monthly service fee. On its product page, the bank indicates an effective annual rate of approximately 34.10–61.36%. There are limitations: credit cards and loans from non-bank finance companies are not eligible, and at least four payments must already have been made on the existing loan without overdue debt.
Credit Agricole does not market its product specifically as refinancing. Instead, it offers a standard cash loan. That makes it particularly interesting as an alternative: up to UAH 700,000 for up to 60 months, a nominal interest rate of 32% per year, and a published effective annual rate of 36.78–37.56%.
PrivatBank offers cash loans of up to UAH 500,000 for 10, 20, 36 or 60 months. The nominal rate is 34% per year on the outstanding balance, while the published effective annual rate is up to 40.48%.
The main finding from my research: borrowers should not limit their search to products explicitly called “refinancing.” In some cases, a standard bank cash loan may be cheaper. The useful comparison is the effective annual rate, total future payments and the same repayment period.
How this research was conducted
I deliberately did not rank loans based on advertising claims such as “0.01% per year,” “from 1.99% per month” or “no overpayment.” Taken in isolation, those numbers tell borrowers very little about the true cost of a loan.
The main metric used in this comparison is the effective annual percentage rate. This measure incorporates interest, commissions and other mandatory costs associated with obtaining and servicing the loan.
The National Bank of Ukraine also emphasizes the importance of looking at the total cost of borrowing. Financial institutions are expected to disclose the effective annual rate, total credit cost, repayment period, commissions and other mandatory charges.
I included banking products that can technically provide enough funds to repay another debt. I deliberately excluded microfinance companies from the same ranking because short-term loans with daily interest rates use a very different pricing model and may create a much more expensive debt structure when used to refinance a long-term bank loan.
Comparison of loans that can be used to repay another loan in Ukraine
| Bank / product | Amount | Term | Published rate | Effective annual rate | Key point |
|---|---|---|---|---|---|
| Sense Bank — refinancing | UAH 5,000–500,000 | 6–60 months | 30–49% per year | 34.10–61.36% | Dedicated refinancing product; up to 5 loans; no monthly service fee; no overdue debt allowed |
| Credit Agricole — cash loan | up to UAH 700,000 | up to 60 months | 32% per year | 36.78–37.56% | Not a dedicated refinancing loan, but one of the lowest published effective rates in the sample |
| PrivatBank — cash loan | up to UAH 500,000 | 10, 20, 36 or 60 months | 34% per year on outstanding balance | up to 40.48% | Approved amount is determined individually |
| OTP Bank — cash loan | UAH 10,000–1,900,000 | up to 7 years | Individual | 40.92–63.97% | Potentially high loan amount and long repayment term |
| Sense Bank — cash loan | UAH 5,000–1,500,000 | 3–60 months | 0.01% + monthly fee of 1.99–2.55% | 43.41–66.58% | A good example of why a 0.01% headline rate does not mean a cheap loan |
| Idea Bank — refinancing offer | UAH 5,000–500,000 | 12–60 months | 39% for refinancing new customers | 46.27–47.23% | Can consolidate up to 10 loans from other banks; no overdue debt allowed |
| PUMB — VSEYASNO | UAH 1,000–500,000 | 6–36 months | Monthly fee of roughly 1.99–2.99% | Bank calculator shows an example of about 54.63% | Early repayment rules and fee calculations should be checked separately |
The terms above are based on information published by the banks and available during the review on September 18, 2026. Final rates, approved limits and lending decisions depend on the individual borrower. Banks may calculate representative effective annual rates using different scenarios, so this table should be treated as a starting point for comparison rather than a personal loan offer.
Key finding: a dedicated refinancing loan is not always cheaper
This is one of the most important findings from the research.
A person searching Google for “where to get a loan to pay off another loan” will naturally expect dedicated refinancing products to be the cheapest option. In practice, the name of the product does not determine the final borrowing cost.
Idea Bank, for example, offers a convenient refinancing mechanism that can consolidate as many as ten existing bank loans into one. However, for a new customer the bank publishes an effective annual rate of approximately 46.27–47.23%.
By comparison, Credit Agricole’s standard cash loan has a published effective annual rate of 36.78–37.56%. That creates a potential difference of roughly ten percentage points in annual borrowing cost.
Sense Bank sits somewhere in between. Its refinancing product can start at an effective annual rate of about 34.10%, which is highly competitive, but the upper end reaches 61.36%. In other words, the personalized offer matters much more than the headline minimum.
My model: what is the cost difference between 35%, 40%, 50% and 60% effective annual rates?
To make the difference easier to understand, I built a normalized model using a debt balance of UAH 100,000 refinanced over 24 months.
I converted the effective annual rate into an equivalent monthly rate and modeled an annuity repayment schedule. This is not a repayment schedule from any specific bank. It is a comparative model designed to show the impact of borrowing cost.
| Assumed effective annual rate | Approx. monthly payment | Total paid over 24 months | Cost above the original UAH 100,000 |
|---|---|---|---|
| 35% | ≈ UAH 5,611 | ≈ UAH 134,672 | ≈ UAH 34,672 |
| 40% | ≈ UAH 5,806 | ≈ UAH 139,337 | ≈ UAH 39,337 |
| 50% | ≈ UAH 6,186 | ≈ UAH 148,461 | ≈ UAH 48,461 |
| 60% | ≈ UAH 6,555 | ≈ UAH 157,318 | ≈ UAH 57,318 |
In this model, the difference between a 35% and a 60% effective annual rate on a UAH 100,000 loan over two years is approximately UAH 22,646.
This is why even a relatively small difference in the effective annual rate can matter when refinancing. The effect becomes much larger when the outstanding debt is UAH 200,000–500,000.
Why a lower monthly payment does not necessarily mean better refinancing
This is the second major mistake borrowers can make.
A bank can reduce the monthly payment simply by extending the repayment term.
In my model, a UAH 100,000 loan with an effective annual cost of around 37% produces the following approximate results:
| Term | Approx. monthly payment | Total amount paid |
|---|---|---|
| 24 months | ≈ UAH 5,689 | ≈ UAH 136,546 |
| 36 months | ≈ UAH 4,350 | ≈ UAH 156,591 |
| 48 months | ≈ UAH 3,712 | ≈ UAH 178,167 |
| 60 months | ≈ UAH 3,353 | ≈ UAH 201,172 |
Moving from a 24-month term to 60 months cuts the monthly payment from about UAH 5,689 to UAH 3,353. At first glance, this may look attractive.
But the total amount paid in the model rises from roughly UAH 136,500 to more than UAH 201,000.
Refinancing can therefore improve short-term cash flow while making the loan materially more expensive overall.
How to determine whether taking a new loan to repay another loan is actually worthwhile
I use a straightforward approach.
Step 1: ask your current lender for the exact early repayment amount on a specific date and the total amount of all remaining scheduled payments if you keep the loan unchanged.
Step 2: ask the new bank for the consumer credit passport and full repayment schedule. Do not look only at the nominal interest rate. Look at the total amount payable.
Then use the following formula:
Refinancing savings = all remaining payments on the old loan − all payments on the new loan − any additional switching costs.
If the result is positive and the new loan term is not disproportionately longer, refinancing may make financial sense.
If the total amount paid increases, what you are really buying is a lower monthly payment rather than a lower total cost.
Example: when refinancing can genuinely save money
Assume the outstanding principal is UAH 100,000 and the existing repayment schedule requires a total of UAH 162,000 over the next two years.
A new bank offers to refinance UAH 100,000 over the same 24-month period. At an assumed effective annual cost of around 37%, our normalized model produces a total repayment amount of about UAH 136,546.
The potential difference is:
UAH 162,000 − UAH 136,546 = UAH 25,454.
In this scenario, refinancing is worth investigating further. The next step would be to check insurance, transfer fees, any additional charges and the exact repayment schedule from the new lender.
Sense Bank vs Idea Bank for refinancing
Both banks are noteworthy because they offer dedicated products designed to repay loans issued by other banks.
Sense Bank
The main advantage of Sense Bank is potentially lower cost. The published refinancing rate is 30–49% per year, while the effective annual rate starts at approximately 34.10%.
However, the eligibility requirements are fairly specific. A borrower can refinance no more than five loans. Credit cards and loans from non-bank finance companies are excluded. In addition, at least four payments must already have been made on the existing loan without overdue debt.
Idea Bank
Idea Bank may be more practical for borrowers who have accumulated several bank loans. According to the bank, the program can consolidate up to ten loans from other banks with a total amount of up to UAH 500,000.
For new customers, the bank publishes a refinancing rate of 39% and an effective annual rate of approximately 46.27–47.23%.
For one or two loans, I would first compare a personalized Sense Bank offer against lower-cost standard cash loans from other banks. If a borrower has many existing debts, Idea Bank’s consolidation mechanism may be convenient, but the total overpayment still needs to be calculated separately.
Why Credit Agricole is included even though it is not a refinancing product
Because the borrower’s objective matters more than the product label.
At the time of this research, Credit Agricole published a 32% nominal annual rate for its cash loan and an effective annual rate of 36.78–37.56%.
By comparison, some dedicated refinancing products have effective annual rates above 45%.
If a standard cash loan can be used without a strict purpose limitation and the funds may legally be used to repay another loan, it can potentially be a better financial option.
However, a personalized offer should always be obtained first. The maximum amount of UAH 700,000 shown on the bank’s website does not mean that every applicant will be approved for that amount.
Why a 0.01% interest rate can be more expensive than 32%
Sense Bank advertises a nominal cash loan rate of 0.01% per year. At the same time, the product includes a monthly fee of 1.99–2.55%, while the effective annual rate is approximately 43.41–66.58%.
This is a very useful example.
If borrowers compare only headline rates:
- 0.01% looks almost free;
- 32% at Credit Agricole looks expensive;
- 34% at PrivatBank also appears much higher.
Once commissions and other costs are included, the picture changes. That is why I use the effective annual rate as the primary comparison metric throughout this research.
Should you use a microloan to repay a bank loan?
For long-term bank debt, I would only consider this after calculating the full cost very carefully.
Ukrainian law limits the maximum daily interest rate on consumer lending, but a daily rate and a bank’s annual rate are fundamentally different measures.
The National Bank of Ukraine also warns consumers against evaluating a loan solely by its advertised daily rate. The relevant comparison should include total costs and the effective annual percentage rate.
Using a short-term, expensive loan to repay a long-term bank debt without a clear repayment plan can turn a single-loan problem into a multi-loan debt cycle.
What if the existing loan is already overdue?
This changes the refinancing situation significantly.
For example, the dedicated refinancing programs reviewed from Sense Bank and Idea Bank require the borrower to have no overdue debt.
That means obtaining a new loan is often more difficult after a payment has already been missed.
If you already know that the next payment may be difficult, it can make sense to contact the current lender first and ask about restructuring options: extending the term, changing the repayment schedule, reducing the monthly payment or creating an individual repayment plan.
Sense Bank, for example, separately describes restructuring options for existing loans and credit cards for eligible customers.
What is happening with lending rates in Ukraine?
Borrowing remains relatively expensive in 2026.
According to National Bank of Ukraine statistics, the average interest rate on new hryvnia loans to households was approximately 29.15% per year in January 2026. This is important context, but it is not the same as the effective annual rate for a specific consumer loan, so it should not be compared directly with effective rates of 36–60% shown in individual bank credit passports.
By the end of 2025, net hryvnia lending to businesses and households had increased by more than one third. This indicates that banks were actively expanding lending while competition for borrowers remained strong.
At the same time, on September 17, 2026, the National Bank of Ukraine decided to raise its key policy rate to 16% per year, with the new level taking effect on September 18. This does not automatically change the rate on an existing fixed-rate loan, but new lending offers may be repriced by banks over the following months.
For that reason, the figures in this article should be viewed as a market snapshot as of September 18, 2026.
What figures to request from a bank before refinancing
- The exact early repayment amount for the existing loan on a specific date.
- The total amount of payments remaining under the current schedule.
- The effective annual rate for the new loan.
- The total cost of the new loan in hryvnia.
- All monthly and one-time fees.
- The cost of insurance, if required.
- The monthly payment amount.
- Early repayment rules.
- Whether the new bank transfers funds directly to the existing lender.
- Whether the old credit account or card must be closed separately after repayment.
Once you have these figures, the comparison takes only a few minutes and becomes far more useful than any generic list of the “best loans.”
My conclusion: which options look most interesting for repaying another loan in September 2026?
Based on the published terms I reviewed, I would divide the decision into two scenarios.
If you specifically need a bank refinancing product, Sense Bank is one of the first options worth calculating. The lower end of the published effective annual rate, around 34.10%, is competitive. However, because the range extends to 61.36%, the personalized offer is decisive.
If the product does not need to be explicitly branded as refinancing, Credit Agricole looks particularly interesting at 32% nominal and 36.78–37.56% effective annual cost. PrivatBank, with an effective annual rate of up to 40.48%, is also worth comparing.
Idea Bank can be practical for borrowers who need to consolidate a larger number of existing debts because it allows up to ten loans to be combined. However, its published effective annual rate for refinancing new customers is higher at approximately 46.27–47.23%.
There is therefore no universal answer that one specific bank is always the cheapest. The most financially attractive loan is the one for which the total amount of future payments after refinancing is genuinely lower than the total remaining cost of the existing debt.
FAQ: taking a loan to repay another loan
Can I take out a loan to repay another loan?
Yes. This can be done through a dedicated refinancing program or by using a standard cash loan if the terms allow the borrower to use the funds freely. Before applying, compare the total cost of the new loan with the remaining cost of the existing loan.
Where is it cheaper to get a loan to repay another loan in Ukraine?
Based on published terms available on September 18, 2026, it is worth comparing Sense Bank’s dedicated refinancing product with cash loans from Credit Agricole and PrivatBank. For borrowers who need to consolidate many separate bank loans, Idea Bank is also worth checking.
What is a good refinancing rate in Ukraine in 2026?
The nominal rate alone is not a reliable benchmark. In the products reviewed, the lower end of effective annual rates is roughly 34–40%, while some offers exceed 50–60%. The actual rate depends on the loan amount, repayment term and borrower profile.
Can several loans be combined into one?
Yes. Sense Bank allows eligible borrowers to refinance up to five qualifying loans, while Idea Bank states that up to ten loans from other banks can be consolidated if the program requirements are met.
Can an overdue loan be refinanced?
It is much more difficult. The Sense Bank and Idea Bank programs reviewed here require no overdue debt. If the loan is already delinquent, checking restructuring options with the existing lender may be a more realistic first step.
Should I take a microloan to repay a bank loan?
Only after carefully comparing the total cost. A short-term loan with a daily rate can be far more expensive than a bank loan and may increase the risk of entering a debt cycle.
Does refinancing improve your credit history?
Refinancing itself does not automatically improve credit history. What matters is making payments on time under the new agreement and properly closing the old loans without overdue balances.
Sources and limitations of the research
This research is based on public data from the National Bank of Ukraine and officially published lending terms from Sense Bank, Idea Bank, Credit Agricole Bank, PrivatBank, OTP Bank and PUMB.
Banks may change rates and commissions, and final loan terms are often determined individually after assessing the borrower’s creditworthiness. Before signing any agreement, obtain the current consumer credit passport and compare the effective annual rate and the total amount payable in hryvnia rather than relying on the advertised nominal rate.
This material is provided for informational and analytical purposes and does not constitute individualized financial advice.
Comments