Refinancing and restructuring are the two main tools to reduce cost on an existing loan. Practical difference is crucial: refinancing replaces the old loan with a new one at another institution; restructuring modifies existing loan terms at the same institution.
Refinance when APR difference is over 2 percentage points and you have more than 12 months left. Most common winning case: a 2019-2021 mortgage with IRCC plus fixed margin, where IRCC climbed from 1.5% to 6.1%. Restructure when you can no longer pay current rate but want to avoid late payments and negative Credit Bureau records.
NBR Regulation 6/2018 (decision 121) caps total costs at 100% of borrowed amount for loans under 5,000 lei. You must invoke the cap in writing. Refinancing an NBFI loan (250-700% APR) with a bank loan (10-13% APR) cuts total cost by 60-80% for qualifying profiles.
See our refinancing comparator, when it's worth it, and your full rights.
Frequently asked questions
Refinancing vs restructuring?
Refinancing closes the old loan via a new one at another bank with lower APR. Restructuring modifies your existing loan terms (period, rate) at the same bank, no new loan.
When is refinancing worth it?
When APR difference is over 2 percentage points and you have more than 12 months left. Below these thresholds, refinancing costs (closing fee, notary, mortgage valuation) cancel the benefit.
Does restructuring hurt my credit score?
Restructuring you request for optimization doesn't affect score. Restructuring requested by bank for risk (when you can't pay) registers at Credit Bureau as distress signal.
What is NBR cost cap 121-2018?
NBR set via Norm 6/2018 (decision 121) that for loans under 5,000 lei, total costs (interest plus fees) can't exceed 100% of borrowed amount. You must invoke the cap in writing when balance exceeds threshold.
Can I refinance an NBFI loan with a bank one?
Yes, one of the best uses of a personal loan. With 1-2 active fast loans at 250%+ APR and bank-qualifying income, refinancing into one personal loan at 10-12% APR can cut total cost by 60-80%.