Loan Restructureing !

Loan is a good thing to have if we can afford to pay the EMI and build the asset for us optimising the cash flow.
Housing loan is a one kind of such a loan which gives you a leverage for longer period and you can build an asset for you. 
how ever if the floating rate of interest is making it difficult for you to repay your loan you should think of restructuring of the loan.


How you can do restructuring of Loan ?


1. With your existing lender : You can approach to your lender and have to ask about the possible ways of doing it. many people hesitate of doing this, a simple question can help you to reduce your burden of EMI's. normally it is seen that the old client of the lender are paying higher interest rate at the same time the new loans are offered at cheaper rates.
You can also convert your loan to cheaper by just giving one application and paying some fees which is normally 0.5% of balance loan amount.
If by paying 0.5% you could save 1% to 1.5% it makes a  sense 


 2. You can change your lender :  have to refinance your loan,  there are two aspects in this 
A. if your loan a floater loan from the day of disbursement then there is a good news for you, now you need not have to pay a penalty for refinancing the loan the the old lender. But with the new lender you have go through the normal processing as if this is a new loan, so have to think of expenses related to that and considering that expenses on the balance loan if you can save 1% to 1.5% it is a good deal.


B. If the loan is in the fixed type either for full term or for few term then you have to pay penalty for refinancing a loan. this penalty may vary from bank to bank on the basis of agreement. Again criteria will remain the same for taking decision.


happy loan restructuring :)

About the author : Ashish Ramesh Bhave is a CERTIFIED FINANCIAL PLANNER, focused and specialized in financial planing for individuals and families. Can be reached at arbfinancials@gmail.com or Cell : 08793107044