Personal Loan Refinancing: Is it Worth the Hype? Uncover When it Truly Saves You Money

• Refinancing a personal loan is often presented as an easy upgrade with lower interest and EMI, but it only benefits in specific situations.
• It's most effective when the loan is new (first year or two) as EMIs primarily cover interest, allowing you to replace expensive interest with cheaper rates.
• Refinancing can also be beneficial if your financial profile has significantly improved, leading to better rates from lenders.
• Consider refinancing for cash flow relief by extending tenure, even if it means more overall interest, to avoid missed EMIs.
• Refinancing deep into a loan, for small rate drops, or without considering foreclosure penalties often disappoints and adds hidden costs.