What is refinance? What is top up loan?

Question

Accepted Answer

Refinance is the process of replacing an existing loan with a new one with better terms. Top up loan is an additional loan on top of an existing one.

Refinance can help lower interest rates, reduce monthly payments, or change the loan term.
Top up loan is usually offered to borrowers who have already paid off a significant portion of their existing loan.
Refinance and top up loan are commonly used in the context of home loans and personal loans.
Example of refinance: A borrower with a high-interest rate mortgage may refinance to a lower interest rate to save money on interest payments.
Example of top up loan: A borrower who has paid off a significant portion of their car loan may be eligible for a top up loan to finance a new car.

Accepted Answer

Exmple costmer runing one single loan is very good track. Bank offer to costmer according to costmer loan. Some money paid to costmer called top up..and called bank to transfer bt loan more required money

What is refinance? What is top up loan?

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