CAR REFINANCING

Car Refinancing

Refinancing a car is the process of having your car loan paid off and replaced with a new one, often with a different lender, that has new agreed-upon terms.

There are various possible outcomes and, in many cases, it’s about saving money, though not always. Borrowers often look for a lower monthly payment, reduced interest rate or different loan duration, or a combination of these.

Reasons for car refinancing

Borrowers can witness a lot of benefits through car loan refinancing if it is done right. The main advantage with refinancing is the possibility of having many flexible options. With refinancing, you can get lower interest, extend the loan tenure, shorten the loan tenure, or choose new terms. If you are facing financial difficulties with monthly payments, refinancing could help you improve your financial situation. In most cases, the process associated with refinancing is quite straightforward. Hence, if you are in dire need to improve the terms of your existing loan, you can consider refinancing and take advantage of the benefits offered.

Example 

If Customer Having Finance With Bank “A” at 16% Rate 2 lacs Rupees Outstanding and Second Bank “B” Offer 14.75% Rate And 4 lacs rupees total loan now benefits is Rate Of Interest 1.25% Reduce and New 2 lacs rupees on hand for any reason like Personal expense , restructuring old high rate loan , Business expansion etc.