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Personal Loan Refinance Calculator: Simplify Your Loan Repayments
Refinancing your personal loan can help you save money by reducing your monthly payments, lowering your interest rate, or restructuring your loan tenure. However, refinancing and balance transfer are often used interchangeably, which can confuse borrowers. Here’s a clear guide to help you decide between refinancing and balance transfer, along with when to use each.
Whether you need to refinance your personal loan or opt for a balance transfer, Minemi’s tools and resources make the process seamless. Start exploring your options today to save money and simplify your financial life!
Updated Oct 14, 2024 · 3 min read
Written By: Shanti and Mayank
Lead Writer 
Edited by Priya K
Fact Checked
Steps to Refinance Your Car Loan
1. Refinancing vs. Balance Transfer: What’s the Difference?
Feature Refinancing Balance Transfer
Definition Replacing your existing personal loan with a new one, potentially with different terms (tenure, interest rate, EMI). Moving the outstanding loan balance to another lender offering a lower interest rate or better repayment terms.
Purpose To restructure your loan for lower EMIs, interest savings, or better tenure. To reduce the interest rate on the outstanding balance and save on EMIs.
Loan Amount You can refinance the total loan amount or adjust it as per your needs. Only the unpaid loan balance is transferred to the new lender.
Eligibility Depends on credit score, income, and lender policies for new loans. Depends on repayment history and the current unpaid loan amount.
Definition Replacing your existing personal loan with a new one, potentially with different terms (tenure, interest rate, EMI). Moving the outstanding loan balance to another lender offering a lower interest rate or better repayment terms.
Purpose To restructure your loan for lower EMIs, interest savings, or better tenure. To reduce the interest rate on the outstanding balance and save on EMIs.
2. Determine the Value of Your Car
The current market value of your car impacts refinancing. Use online tools or dealership estimates to determine your car’s value.
MinEmi Tip:
If you owe more than your car’s worth (negative equity), focus on reducing the principal balance by making extra payments before applying for refinancing.
3. Evaluate Your Credit
Check your credit score before applying for refinancing. A higher credit score can help secure lower interest rates.
MinEmi Tip:
If your credit score has improved in the past 6-12 months due to on-time payments, you’re more likely to benefit from refinancing.
4. Gather Information for Your Application
Prepare these documents to streamline the application process:
- Driver’s license and vehicle registration.
- Proof of insurance and income.
- Vehicle Identification Number (VIN).
- Loan payoff statement from your current lender.
5. Compare Lenders and Rates
Compare multiple lenders’ offers and consider:
- Loan tenure: Opt for shorter terms to save on interest.
- Processing fees: These can impact overall savings.
- Prepayment options: Flexible terms can reduce long-term costs.
Use Minemi’s Car Loan Refinance Calculator to compare offers and make informed decisions.
Auto refinance calculator
Current loan
Original Loan Amount
Original Loan Term in Months
Original Interest Rate
10%
New loan
Refinanced Loan Amount
New Loan Term in Months
New Interest Rate
6%
Refinancing could save you
Old EMI
0
New EMI
0
Monthly savings
0
6. Apply to Refinance Your Car Loan
Finalize the refinancing process:
- Submit the required documents to your chosen lender.
- Sign the new loan agreement.
- Ensure your previous loan is paid off.
MinEmi Tip
Apply to multiple lenders within a 14-day window to minimize the impact on your credit score.
Ways to Save with Car Loan Refinancing
- Lower Interest Rates: Negotiate with lenders to reduce APR.
- Shorter Loan Terms: Pay off your loan faster to save on interest.
- EMI Consolidation: Combine multiple auto-related loans for better manageability.
- Automatic Payments: Some lenders offer discounts for auto-debit arrangements.
Frequently Asked Questions
How much can I save by refinancing my car?
Does refinancing affect my credit score?
What documents are required for car loan refinancing?
Is it better to refinance with my current lender?
Can I refinance if I have a low credit score?
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