Loan: When RBI reduces the repo rate, all your kinds of loans also become cheaper. After reducing the repo rate twice, banks have started decreasing everyone’s interest rates from home loans to personal loans. However, if you feel the interest rates of the loan, if you feel that your home loan is expensive, then you have a solid way by which you can take your home loan or personal loan with a very cheap interest rates and you can save millions of interests of interest.
Know what you have to do
If you feel that you give EMI on time and your CIBIL score is also better, then you should talk to the bank to improve the interest rates of your loan. If the bank does not agree on this, then you can resort to loan refinanting and reduce the interest of your loan.
What is loan refinance?
In loan refining, a new loan with a low interest rate -like conditions is taken and the old loan is closed. After this, repayment of new loans is started. If your credit score is good, then other banks offer you very easily than the current interest rate.
EMI becomes small
The advantage of refining is that as soon as your interest rate is low, your EMI also decreases. This gives you a lot of relief.
Can do the tenure according to your own
When you get a loan refinant, you get a chance to reacting loan. While taking a new loan, you can get EMI tenor done or more or more according to your own. If you take a loan with cheap interest rate and also reduce the tenor, then millions of interest.
When to take refinancing decision
If you are getting a new loan at a cheap rate in another bank, then you can take this decision. Apart from this, if you have taken a loan at a fixed interest rate, but after some time the incident has started. If you want to adopt new interest rates, but in this situation, if your bank is not ready to give you a floating rate loan option, then you can get loan refinant. If the burden of EMI is very high on you and you want to reduce EMI by reacting again, then you can take this decision.
These charge have to be paid
Whenever you take this decision, you may have to pay foreclosure fees, etc. in the current bank. Apart from this, you may have to pay loan processing fees and other fees along with stamp duty in the new bank.