Know All About Debt Consolidation Loan

The entire world is undergoing unprecedented and challenging times. It is due to the Novel Coronavirus (COVID-19). All countries are under lockdown for 2-3 months & we are not an exception. With most of the sectors closed, people are finding it tough to manage their expenses. Know about Debt Consolidation Loan here.

What’s more, having ongoing debts may further worsen the situation. You may be receiving your Salary with some deductions in the wake of COVID-19. And the current situation may not help you to pay off the debt on time.

Thus, what is the best way to pay off your debt even during the lockdown? Let’s discuss the same in this post!

Did you hear of the debt consolidation? Yes, debt consolidation is the solution to paying off the loan in one go. This way, you can manage to pay single EMI and handle other expenses without issues. To do that, you can go for the debt consolidation loan.

What is a debt consolidation loan?

A debt consolidation loan is an extension of the personal loan. It can help you combine all your current debts into one and pay a single EMI. If you have a higher CIBIL score, then you can also get a low-interest personal loan and pay reduced EMIs.

Why should you apply for a debt consolidation loan during a lockdown?

Applying for a debt consolidation loan comes with many benefits that can help you survive through the lockdown. Have a look:

  • You can borrow up to Rs.25 lakh

The debt consolidation loan gives you the advantage of borrowing a higher amount of up to Rs.25 lakh. Leading lenders can help you do that as per your eligibility. With a higher loan amount, you can find clearing your existing debts easier.

  • It comes with instant approval and fund disbursal

Applying for a debt consolidation loan can get you the loan approval within minutes. Yes, you can get that if you have the required eligibility. Once you have the loan approval, you can get the loan amount in your bank account within 24 hours.

  • You can repay the loan within 60 months

The personal loan for debt consolidation comes with a flexible repayment period. Yes, you can repay it within 60 months. Since you have 5 years to do that, you can manage to pay reduced EMIs. In turn, it can help you handle other expenses without concerns.

  • Easy to meet eligibility and documentation

The debt consolidation loan is provided on easy eligibility conditions. And you need to furnish only primary documents. Have a look at the standard eligibility and documents:

  • You need to be a resident citizen of India.
  • You need to be aged between 23-55 years.
  • You should be working for a Private, Public or an MNC Company.
  • KYC Documents.
  • Employee ID Card.
  • Last 2 months’ Salary Slips.
  • Salaried bank account statements for the last 3 months.

What’s more, the CIBIL score of 750+ not only helps you get the approval, but also a low interest personal loan.

Hence, before you apply for the debt consolidation loan, you should ensure timely repayments on existing debts. It can help you have a healthy CIBIL score. 

Other than going for the personal loan for debt consolidation, you can also transfer your debts to other lenders. But before doing that, you should check if the processing charges are more than what you will save or not. 

Reasons Why Debt Consolidation is Helpful for You

 Debts are a part of our lives. Not everyone has the required finances to fulfil the needs with their own funds. And that’s why financial institutes offer loans to cover many needs. In return, you pay lenders EMIs and interest charges.

But what if you have so many debts that it is consuming higher interest charges? When the debt to income ratio increases, you may find it tough to manage other expenses. It is where the concept of debt consolidation comes into the picture.

Nowadays, you can avail a debt consolidation loan and pay just one EMI in a month. If you are worried about paying too many EMIs, then you should know why debt consolidation is useful. Read on!

Reason #1

Helps you turn many payments into single

The most immediate benefit of the debt consolidation is that you can pay off your debt in one go. And in turn, you can enjoy paying lower EMIs. It also helps you in managing other outlays in your life. And you don’t need to be stressed only about managing to pay too many EMIs anymore. With the debt consolidation loan, you can pay off all credit card outstanding and other loans. It can make you feel so relaxed, and you only need to pay a single EMI.

Reason #2

Assists you to enjoy the lower rate of interest

Yes, the personal loan for debt consolidation attracts a higher interest charge. It is because it is an unsecured facility. But the interest charges that you will need to manage may be much lower than what you are currently paying. It is if you have 2-3 credit cards outstanding. Yes, credit card debts are the highest in the world. And it adds more to your debt. Thus, by opting for a debt consolidation loan, you can enjoy a lower interest rate on personal loans in the long run. It is when compared to what you were paying earlier.

Reason #3

Can help you improve your CIBIL score

With many debts to handle in a month, you may default on some of them. And doing that will affect your CIBIL score. But when you go for a debt consolidation loan, then you will only need to worry about paying a single EMI. Hence, you will find it easier to repay it on time. In turn, timely payments will help you have a robust credit score.

Reason #4

Helps you avoid stress

What happens when you consolidate your entire debts into one? What happens when you bring the EMI to a manageable amount? It surely reduces your stress. Money matters are something that is known to lead people to stress and even commit suicide. Hence, the personal loan for debt consolidation can help you control your finances. Overall, you will be able to have a clear mind and live with more financial freedom.

Reason #5

Applying for it is hassle-free

Applying for a debt consolidation loan is now dead easy. You can easily apply for it online and get approval within minutes. You can also receive the money in your bank account within 24 hours after the approval. Also, a higher loan amount of up to Rs.25 lakh by leading lenders can help you pay off bigger debts. You can also get up to 5 years to repay the loan. Thus, you can opt for a longer tenor and pay lower EMIs. It can help you improve your credit score – a vital aspect to get next loan approval quickly.

With so many advantages of debt consolidation loans, you can get one today online. This way, you may start having financial freedom once again!

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I am a professional blogger who has written a couple of informative pieces and blogs in various domains starting from the healthcare industry, latest advancements in technology, social media practices, latest trends, and so on. I practice my best to keep my knowledge updated with the latest happenings in the world and take an initiative to share my knowledge and views about the concerning subject to my followers.
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