Do you have many loans and are struggling to manage them? Do you often miss repayments for some of your loans? Or do you wish you could avoid making multiple payments for your loans?
What is a Debt Consolidation loan?
A simple concept that is designed to make loan repayments easier, debt consolidation refers to consolidating all of your debts/loans into one single loan.
Imagine a scenario where you have many different loans like personal loans, credit card debt, education loans, etc. from different lenders, which require you to keep a track of different payment schedules. This may result in missing payments. In these cases, a single debt consolidation loan may be availed which will help you close down all the existing loans and take on a single loan. This way, it gets easier for you to manage your debt.
But how can you repay your consolidated loan? The answer is simple - with the help of an affordable personal loan.
Features and Benefits of a Debt Consolidation Loan
A debt consolidation loan can prove to be extremely beneficial due to a variety of reasons. Some of the important ones being:
Easy to Avail
A personal loan is easier to avail than most other loans like a home loan or a vehicle loan
No Need for Collateral/Security
A personal debt consolidation loan can be availed without furnishing any collateral or security
Customized Loan Amount
Borrowers generally have the flexibility to choose the loan amount as well as the repayment term of their choice
Quicker Disbursal
You can avail debt consolidation personal loans from leading fintech lenders like Money View within 24 hours making it feasible for those looking for urgent funds
Ease in Loan Management
Managing multiple loan repayments is difficult and may result in missing payments which could affect your credit score. Going in for a debt consolidation personal loan can help you avoid all of these pitfalls.
Boost Your Credit Score
By opting for a debt consolidation loan, you will be closing many of your other loans, which may help boost your credit score, as you would be effectively reducing the number of outstanding loans against your name. However, if you delay the repayments on your consolidated loan, your credit score will be affected badly
Where Can You Get a Debt Consolidation Loan?
Certain banks take over your existing debt by paying off your existing debts. Hence, a debt consolidation loan can be availed from banks, non-banking financial institutions or certain fintech lenders.
However, not every lender provides this facility. Therefore, as a borrower, you will have to check with your lender. On the other hand, personal loans to repay such consolidated loans are much more easily available.
One of the most popular lenders in the market - Money View provides affordable personal loans that can be used to pay off your consolidated loan.
Note:Money View does not consolidate your loans. However, you can avail a personal loan from us to pay off a loan that has already been consolidated.
How Can I Avail a Debt Consolidation Loan?
A debt consolidation loan can be availed by visiting the branch of certain banks. The usual procedure of submitting a physical application and other supporting documents by visiting the branch will have to be followed. Borrowers are advised to contact the bank beforehand to check for this facility.
On the other hand, a personal loan for debt consolidation from Money View can be availed without a hassle right on your phone or laptop from the comfort of your home or office. It involves just 4 simple steps and can be completed in no time.
Check your eligibility
Find out the maximum loan amount you’re eligible for online in 2 minutes
Select Your Plan
Choose a custom loan amount and a repayment period that suits your financial needs
Upload required documents
Provide your personal details and upload the necessary documents, all on the app or website
Get the Loan Amount
Get the loan amount disbursed to your account within 24 hours of approval
Eligibility Criteria For Money View Personal Loan for Debt Consolidation
In order to get Rs. 2 lakh personal loan from Money View, you will need to fulfill the following criteria -
- Applicants must be between 21 years and 57 years
- Applicants must receive an income of Rs. 13,500 or more*
- Income must be credited directly to the applicants’ bank account
- Credit score must be a minimum CIBIL score of 600 or minimum Experian score of 650
| Income and Credit Score Eligibility Criteria* | |||
|---|---|---|---|
| Salaried Individuals | Minimum In-Hand Income | Area of Residence | CIBIL Credit Score Requirement |
| Rs 13,500 | Any | CIBIL Score of 600 /Experian Score of 650 and above | |
| Rs 20,000 | Mumbai/Thane or the NCR region (Delhi, Noida, Gurgaon, Ghaziabad, Faridabad, etc.) | New to Credit or CIBIL Score of 600 /Experian Score of 650 and above | |
| Rs 15,000 | Metro City other than Mumbai and NCR | CIBIL Score of 600 /Experian Score of 650 and above | |
| Self-Employed Individuals | Rs 15,000 | Any | CIBIL Score of 600 /Experian Score of 650 and above |
Documents Required for Debt Consolidation Loan
Submitting documents need not be a complicated process. At Money View, we require only 3 key documents from you, as listed below -
| Identity Proof | Address Proof | Income Proof |
|---|---|---|
PAN Card - This is the primary ID proof required. However, if it is rejected due to image quality issues or other
reasons, any 1 of the officially valid documents given below will suffice)
|
Any 1 of the following -
|
Salaried Applicants - Last 3 months’ bank statements of your salary account in PDF format showing salary credits
OR Self-Employed Applicants - Last 3 months’ bank statements in PDF format if you are self-employed |
Features and Benefits of Money View Personal Loans for Debt Consolidation
Wide Range of Loan Amount
Money View offers personal loans of up to Rs 5 lakhs. So you can avail any amount that meets your requirements.
Low Pocket-Friendly Interest Rates
The interest rate on our personal loan is low enough to not burn your pocket and starts at 1.33% per month.
Instant Loan Disbursal
Our personal loan is disbursed to your bank account within 24 business hours after the approval.
100% Online Process
You can apply for a personal loan comfortably from home, from your workplace, or while travelling without wasting any time or effort. This is also a boon considering the current pandemic situation.
Available Even For Applicants with Low-Credit Scores
Banks and other traditional financial institutions look for a minimum credit score of 750 to provide a personal loan. But, Money View provides personal loans to anyone with a CIBIL score of 600 or Experian score of 650 and above. We have our own in-house credit model that helps us assess the creditworthiness of our customers.
Fees and Charges for Money View Personal Loan for Debt Consolidation
At Money View, we focus on making our loans affordable for our customers. Check out our fees and charges below -
| Fees & Charges | Amount Chargeable |
|---|---|
| Interest Rate | Starting from 1.33% per month |
| Loan Processing Charges | Between 2% to 8% of the approved loan amount |
| Interest on Overdue EMIs | 2% per month on the overdue EMI/Principal loan amount |
| Cheque Bounce | Rs.500/- each time |
| Loan Cancellation |
|
In Conclusion
Availing a debt consolidation loan is a great idea as it will help you pay off your debts a lot more easily. Instead of paying off this consolidated debt through credit cards or private chit fund loans, avail personal loans from Money View and benefit from affordable interest rates and hassle-free application. Visit the Money View loan app or on the website within a timeframe of 2 business hours.
Debt Consolidation Loan - Related FAQs
While Money View provides personal loans to help clear off your consolidated debt, it will not consolidate your debts for you. You will have to contact your nearest bank for this purpose.
Debt consolidation loans for an individual with a bad credit score may be subject to lender discretion. Many lenders do not specify the exact credit score required to meet the eligibility criteria for a loan. Hence it becomes difficult to know in advance if you should apply for a particular loan for debt consolidation.
However, Money View clearly specifies its credit score requirement which makes it possible for the applicants to know in advance if they are eligible for Money View personal loan for debt consolidation.
Money View requires its applicants to have a minimum CIBIL score of 600 or Experian score of 650. In addition to the bureau credit score, Money View uses its in-house credit score model to assess the creditworthiness of its applicants.
Debt consolidation may work for you if you are having issues making multiple loans repayments and keeping a track of them. By going in for a debt consolidation loan, you could reduce the number of outstanding loans and easily manage one loan EMI.
However, there are a few points to keep in mind if you are looking to consolidate your loans into one:
- You should compare the interest rates of the existing loans and the new loan before going in for a debt consolidation loan. The consolidation loan works beneficial for you only when the new rate of interest is lower than old loans.
- The processing charges on the loan will also have to be taken into account.
- Also you will have to keep in mind that availing a debt consolidation loan helps you consolidate not relieve your debts. You will still have to make the repayment on the new debt.
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