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Outstanding loans can also be renegotiated by any lender. Renegotiations are helpful when the proposed loan terms are not strictly better compared the outstanding loan terms. For instance, a borrower might want to extend a loan in exchange of a higher APR. This new loan term would require a renegotiation offer.
Lenders can also include origination fees as part of a renegotiation offer. Loan renegotiations are not limited to the corresponding lender(s) but available to everyone.
Contrary to a refinance, renegotiations require borrowers to accept the renegotiation offer as loan terms are not strictly better compared to outstanding ones.
In Gondi V2, borrowers are responsible to pay the accrued interest in order to accept a renegotiation offer. When the renegotiation offer has a lower principal amount than the outstanding loan, the difference must also be covered by the borrower in order to accept the renegotiation offer. Borrowers do not need the full principal amount to accept renegotiation offers but only any delta in principal and accrued interest.
Lock-ups for refinancing are also applied after a renegotiation offer is accepted by the borrower.