Should you refinance your loan, what is difference between restructuring and refinancing!

Loan restructuring and loan refinancing are two ways that borrowers can modify the terms of their existing loans.

Loan restructuring refers to the process of negotiating with a lender to change the terms of an existing loan. This could include extending the repayment period, reducing the interest rate, or changing the type of loan. Loan restructuring is often used as a way to help borrowers who are having trouble making their loan payments.

Loan refinancing, on the other hand, refers to the process of taking out a new loan to pay off an existing loan. The new loan may have different terms than the original loan, such as a lower interest rate or a longer repayment period. Borrowers who are able to qualify for a new loan with more favorable terms may choose to refinance their existing loan in order to save money on interest or make their monthly payments more manageable.

Both loan restructuring and loan refinancing can be useful options for borrowers who are struggling to make their loan payments, or who want to improve the terms of their loans. However, it is important to carefully consider the pros and cons of each option before making a decision, as there may be fees or other costs associated with either option.