If you're stuck in a financial crunch or want to make your loan terms more manageable, you've probably come across these two terms: loan restructuring and loan refinancing.
They sound similar, but they’re very different strategies. Let's break them down, with help from Vizzve Finance’s smart loan tools.
🔁 What Is Loan Restructuring?
Loan restructuring is when your existing lender modifies the terms of your loan because you’re unable to meet payments—often due to job loss, business downturn, or a crisis (like COVID-19).
👀 Think of it as damage control.
🔧 Common restructuring changes:
Extending the loan tenure
Deferring EMIs for a few months
Reducing EMI amounts temporarily
Partial waiver of penalties or interest
💡 Vizzve Insight:
Vizzve’s Loan Health Monitor detects if you're at risk of default and helps you approach your bank with a pre-filled restructuring request.
🔄 What Is Loan Refinancing?
Loan refinancing is when you replace your current loan with a new loan—usually from a different lender—at better terms.
👀 Think of it as a smart upgrade.
💰 Reasons people refinance:
Lower interest rates
Better repayment flexibility
Consolidating multiple loans
Switching from fixed to floating rates (or vice versa)
💡 Vizzve Tip:
Use Vizzve’s Loan Switch Calculator to instantly check if refinancing can save you money—and get lender suggestions tailored to your credit score.
🧭 Restructuring vs. Refinancing – The Key Differences
| Aspect | Loan Restructuring | Loan Refinancing |
|---|---|---|
| Who offers it? | Same lender | Often a new lender |
| Purpose | Temporary relief | Better long-term terms |
| Credit Score Impact | May lower credit score | Can improve credit score if done right |
| When to choose? | Financial distress | Looking to save money or manage debt |
| Vizzve Feature Support | Loan Health Monitor, EMI Rescheduler | Loan Switch Calculator, EMI Optimizer |
🛠️ How Vizzve Finance Helps:
✅ Track loan EMIs across banks
✅ Get refinance suggestions in one dashboard
✅ EMI rescheduling simulator
✅ Compare lender offers in real-time
✅ Credit impact analysis
Vizzve puts the power back in your hands, whether you're seeking relief or smarter repayment options.
🎯 Final Thoughts:
If you're struggling with repayments, loan restructuring may be a lifeline. If you’re financially stable but want better terms, refinancing is your next smart step.
With Vizzve Finance, you don’t need to guess—you get clear guidance, personalized tools, and lender access to make the best call.
🔁 Call to Action:
Not sure what’s right for you?
👉 Try Vizzve’s Loan Relief Toolkit and take control of your repayments—on your terms.
published on 30 june
Publisher : SMITA
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