Personal loan, Oct. 22 -- When the total loan amount becomes too big for you to repay, you might consider refinancing it. This is a common practice among borrowers to buy some time until they arrange funds to redeem their debt. Let us understand this in detail here:

Refinancing refers to taking a new personal loan to repay the old loan to secure better repayment terms and lower interest rates. This is opted for when the borrower wants better loan repayment terms, a longer loan tenor, or an affordable rate of interest.

Refinancing is done in a number of scenarios. These include the following:

I. When you want to save money over a period of time by bringing down your total interest. For example, your credit score has improved since the o...