People make the decision to loan refinancing to reduce the burden of EMI and save lakhs of rupees in the form of interest. In loan refinancing, a new loan is taken with conditions like low interest rate, and the old loan is closed. After this, repayment of the new loan is started. Loan refinancing seems to be a profitable deal. But do not make this decision by getting influenced by anyone, otherwise your decision can also prove to be wrong. If you also want to get loan refinancing done, then first ask yourself the reason for it. Here we are telling you those 6 reasons that can make loan refinancing a profitable deal. If you have any of these reasons, then understand that your decision is right.

If the interest rates of the bank from which you have taken the loan are very high and you are getting the option of lower interest rates in another bank, then in this situation you can choose the option of loan refinancing.

If you have taken a loan at fixed interest rates, but after that, the interest rates have started decreasing. You want to opt for a floating rate loan from a fixed rate loan. If your existing lender is not ready to give you the option of a floating loan, then you can get your loan refinanced from another lender.

If you had chosen a long tenure while taking the loan, but now your financial condition is better and you want to reduce the loan tenure, then you can do this by choosing the option of loan refinancing.

If you are not able to pay the current installment and want to increase the loan tenure to reduce the installment, then you can also choose this option.

If after disbursement of loan you feel that your lender is not providing you good services or you have not got a good deal, then in such situations you can think of changing the lender.

After taking the loan, if you need more funds for home design or any other reason, then you can decide to refinance the loan. Through this, you can take a bigger loan than before.