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| Refinancing means taking a new loan from another lender to repay an existing loan. Refinancing is advantegous in the following situations: |
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| 1. | Interest rates have fallen since the original loan was taken. You can take advantage of the fall in rates and lower your EMI by borrowing from a new lender and repaying the old lender. However there are tradeoffs involved. On one hand you may have to pay a prepayment penalty to the company you had taken the loan from and on the other hand you will have to pay administrative and processing fees to originate a new loan. These are one time costs and may take away about 2.5%-3% of the interest savings in the first year . However, you will continue to enjoy the benefits of a lower EMI payment for the remaining period of the loan.
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| 2. | You need lower EMI payments even if interest rates have increased. |
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You can repay the earlier loan using the proceeds from a new loan. However , by taking a new loan for a longer tenure, you will now pay a lower EMI. (This is called a loan extension ) |
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| We help you refinance your loan |
| To find the cheapest new lender just fill in the following form today and it will be emailed to all lenders. While filling the form, you can further reduce the EMI on the loan by increasing the remaining tenure for repayment of the loan. |
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| Resources |
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Calculate the Loan amount remaining on your Existing loan Click Here
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Calculate the EMI and see if you can afford to pay Click here
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Use
the refinance module and find the cheapest lender Click Here
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| *Please
note that we are the only VENDOR NEUTRAL website that showcases all large lenders
independent of whether they pay any commissions. |
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