Why Do Customers Request Loan Modification?

There are various reasons that can be cited as the reason for the customers to get their loan modified. But primarily it is the rates of interest that make customers go for the modification of their loans. The phenomenon can be explained well with an example which is as follows: If you are taking a loan from an organization at fixed rate of ten per cent per annum. But at later stage you find that some other organization is offering a loan of that very amount at a lower rate. The first thing that is expected to come to your mind is that if you can avail a loan at lower rate, why should you go for paying higher rate and in consequence paying much money. You will certainly take a loan from the other organization and can return the loan of the previous one to enjoy the lower rate of interest.