what is refinance facility and how it works

A refinance facility lets you replace an existing loan with a new one - usually at a lower rate, though not always - aiming to reduce EMI or total interest.

At my kitchen table, I once compared two sanction letters and noticed a small prepayment penalty that changed the break-even by three months.

How to evaluate fairly

1. Check current vs offered APR and tenure; compute break-even months.
2. Include processing, valuation, and foreclosure fees; confirm portability.
3. Verify credit score and income stability; eligibility policies vary by lender.
4. Decide between fixed, variable, or hybrid options; assess risk of longer terms.

Related queries you might explore

• refinance meaning and scope across home, auto, and education loans.
• how to apply for refinance with documents and timing.
• refinance vs top-up loan for cash needs.
• mortgage refinancing process steps, from offer to disbursal.
• refinance eligibility criteria and typical ratios.