New Delhi, April 11 -- Personal loans offer quick cash with no collateral requirements because of which it has become a popular choice for people who do not own assets but require funds for emergencies, events and other personal needs. However, these loans often provide an option of refinancing which can be a smart choice if prior planning is done. Let us understand this in detail.

Personal loan refinancing is when a person takes a new personal loan to pay down the old personal loan. The new loan can be with the same lender or a new lender and it will normally have better terms. The main reason for refinancing is to reduce the cost of borrowing or the monthly EMI, or extend the repayment tenure as per your financial needs.

1. Assess you...