Refinance your loan
Refinancing means replacing an existing loan with a new one — usually at a lower interest rate, a longer term, or at a more convenient bank.
When does refinancing make sense
Market interest rates have dropped
Your credit profile has improved
You want to lower your monthly payment
You want to consolidate several loans into one
Step-by-step refinancing process
- 1Check your current loan balance and interest rate
- 2Compare refinancing offers from all banks
- 3Calculate your savings with our calculator
- 4Contact your chosen bank
- 5Submit the documents and get approval
Benefits and risks
Benefits
- • Lower monthly payment
- • Lower total interest paid
- • One payment instead of several
Risks
- • Early-repayment fees on the old loan
- • Processing fees on the new loan
- • Extending the term may increase total interest
Example
You have a 5,000,000 AMD consumer loan at 18% with 60 months remaining. Refinancing at 13% for the same term:
Current monthly payment
~127,000 AMD
New monthly payment
~113,765 AMD
Total savings
~792,106 AMD
That's ~13,202 AMD/month back in your pocket.