You may have availed a loan against property, were paying the instalments on time, and at that time found the interest rate to be good in comparison to what the other lenders were providing.
However, now you have come across an advertisement stating that the same loan is being provided at a much lower interest rate by another lender. When you ask your lender to offer you a better interest rate considering you have been a loyal customer, there are two possibilities which can take place - either your interest rate will be reduced but not to the extent that you want or else your request will be flatly refused.
In such a scenario, what will you do? Will you continue to pay the instalments of your property loan at the given interest rates? You always have the option of doing that but another option would be to get your loan refinanced by another lender. The biggest benefit here - the lower interest rates has many implications. For instance, the instalment will be lower, thus you will become debt-free more quickly, repaying the loan will no longer feel like a burden and more importantly, you will save money owing to the lower interest rates.
However, before you do so, here are a few important points to bear in mind -
Informing Existing Lender
Property loan refinance means that you will have to change your lender from your existing one to a new one. As such, it is imperative to inform your existing lender before making the switch and also state the reason for doing so.
Reconsider
Once you have put in the application for getting your loan financed, your existing lender may offer you a new interest rate. If you find that the new interest rate is not of your expectations, then you should go ahead with the switch.
Additional Read:
8 Steps to Refinance your Loan Against Property with a Lender
<!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}-->Top Aspects to Consider Before Applying for Loan Against Property in Pune
