Debt Consolidation Loan Starting From 9.99 % P.A.
Purvi , a strong-minded girl in financial need of some, applies for a Debt Consolidation Loan of ₹3 lakhs. She is very optimistic and, by and by, her loan is approved at a moderate interest of 11.99%.
Then, the lender offers her a flexible repayment term between 2 and 7 years. After considering it, Purvi chooses to opt for the 5-year tenure. After communicating the final deal to her, one important figure strikes her—her monthly EMI of ₹6,672.
Purvi will make a payment of ₹4,00,309 in total in these 5 years, which includes ₹3,00,000 as the amount borrowed in principal and ₹1,00,309 as the interest she will be paying for the loan. Easy and straightforward, right? If planned well, this is how a typical journey of a Debt Consolidation Loan looks.
A. Credit Score: A credit score of at least 700 is considered good for borrowing a personal loan at a low interest rate. Check your credit score before applying and take necessary measures, like paying your existing debt, to improve it if it is below the minimum benchmark.
B. Tenure: Longer repayment tenure could increase the total interest paid on the loan. It reduces the EMIs, but the interest keeps accumulating throughout the tenure. A shorter repayment tenure increases EMIs but saves interest in the long run. A minimum loan with a shorter tenure increases creditworthiness.
C. Processing Fees and Other Charges: A personal loan carries hidden charges like processing fees, prepayment penalties, and late payment charges that can increase the total amount paid to the lender. However, these charges vary from lender to lender. For this reason, it is advisable to shop around and compare charges before applying.
D. Annual Percentage Rate (APR): It is the total annual cost of a personal loan charged by lenders. Expressed in percentage, it shows the real cost of a loan to a borrower. For this reason, it is advisable to consider APR before applying. It helps make informed decisions about which personal loan best suits your financial needs.
E. EMI Affordability: Calculate EMI affordability using a calculator to ensure timely repayment of the loan. It will prevent over-borrowing and the resultant financial stress. An EMI affordability calculator can help find the most affordable EMI matching your financial needs.
F. Lender’s Reputation: Check lender reputation from online reviews and ratings to prevent being scammed. Locate a lender with customer-centric policies, transparent processing, and responsive customer service before applying for a personal loan.
G. Eligibility Criteria: Lenders have different requirements related to age, employment status, income, and minimum credit score. Check the eligibility requirement of lenders to find a suitable lender.
Consider a Debt Consolidation Loan your standby for any financial requirement. Small or large. No need to collaterilize your gold or property. No intrusive questioning of what you'll use the money for. Apply, get approved, and spend it however you see fit.
From medical emergencies and traveling to weddings and schooling or even merging all your running debts into one, personal loans give you the flexibility to breathe easy again.
If you've got a load of EMIs and credit card payments siphoning off your monthly income, stay calm. Loan and debt consolidation will allow you to bundle them all together in one loan in the form of one EMI. Isn't that simpler yet?
With a debt consolidation loan, this is what you get:
A. Lower Monthly Payments: Consolidating high-interest debts into one low-interest debt reduces the EMIs and the overall interest in the long run. It brings respite from financial distress and defaulting on loan repayments.
B. Simplified Finances: Merging multiple loans into one makes it easier to manage your finances. Debt consolidation reduces not only the EMIs but also the missed payments.
C. Reduced Total Interest: Instead of paying interest on multiple debts, you pay one interest on one loan. Debt consolidation reduces the interest rate and the total interest paid throughout the loan tenure.
D. Improved Credit Score: Debt consolidation brings consistency in loan repayment, and consistent repayments improve credit score and creditworthiness in the long run.
E. Faster Debt Repayment: Debt consolidation restructures EMIs and ensures timely repayment. It helps repay the debt faster than you could with minimum payments. It reduces interest rates and shortens repayment time.
A. Maintain a High Credit Score: A credit score of above 700 is considered high and eligible for a Personal Loan with a low interest rate. Timely payment of bills increases credit score.
B. Compare Multiple Lenders: Always compare offers from different lenders, including banks and NBFCs, to get the best offer. Lenders compete to loan the maximum amount to the maximum borrowers.
C. Choose a Secured Loan: A secured loan can reduce your interest rate and EMIs, making it easier for you to repay the debt.
D. Opt for Shorter Loan Tenures: A shorter tenure increases EMIs but speeds up repayment, reduces interest, and builds creditworthiness in the long run.
E. Apply Through a Trusted Lender: Lenders often provide more loans at lower interest rates to their existing customers. If you have previously taken a loan, you can take advantage of your relationship with the lender.
Still incurring high interest on that old personal loan? We can assist you in shifting gears.
A personal loan balance transfer allows you to transfer your current loan to a different lender (such as us!) that has improved terms. And that means:
We keep it flexible to allow more people to enjoy it. If you meet these simple criteria, you can join:
At Money Bharti, if you apply, you gain: