Avail affordable personal loans to pay off your consolidated loan
Debt consolidation is the act of converting multiple debts into a single new loan or credit card. This is done to simplify financial obligations and secure more favorable terms. By consolidating your debts, you can reduce your interest rates or lower your monthly payments.
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 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.
Example of Debt Consolidation
Rahul, a software engineer from Bangalore, has multiple debts, including credit card debt, a car loan, and a personal loan. He finds it difficult to manage multiple EMIs with varying interest rates.
|
Debt |
Loan Amount |
Interest Rate |
Monthly EMI |
|
Credit Card Debt |
₹1,50,000 |
30% p.a. |
₹6,368 |
|
Car Loan |
₹2,00,000 |
12% p.a. |
₹2,869 |
|
Personal Loan |
₹1,00,000 |
15% p.a. |
₹1,613 |
|
Total Debt |
₹4,50,000 |
₹10,850 |
Rahul decides to consolidate his debts into a single personal loan. After researching several options, he finds a bank offering a consolidation loan of ₹4,50,000 at an interest rate of 11% per annum for a tenure of 10 years.
New Debt: ₹4,50,000 at an interest rate of 11% p.a.
New Monthly EMI: ₹6,199 (approximately)
Thus, he saves a total of ₹4,651 on EMI payments every month. He will also not have to make multiple payments and can manage his loans better.
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 digital lending apps in the market, Moneyview ,offers affordable personal loans that can be used to pay off your consolidated loan.
Note: Moneyview does not consolidate your loans. However, you can avail a personal loan from our lending partners to pay off a loan that has already been consolidated.
Finance Your Dreams with Personal Loans
Flexible Terms, No Hidden Fees, Easy Approvals
Flexible Loan Amount
Borrow any amount starting from ₹5,000 and going up to ₹10 Lakh
Collateral Free Loans
To apply for a personal loan through Moneyview, you don’t need any asset or arrange for a guarantor
Quick Disbursal
The loan amount is disbursed to your account within 24 hours of approval
Affordable Interest Rates
Benefit from low-interest rates starting from 14% per annum
In order to get a ₹2 lakh personal loan through Moneyview, you will need to fulfill the following criteria -
Your monthly EMI is
per month for 5 months
Total Interest
₹1,004
Total Amount
₹51,004
Loan Amount
Min ₹10
Max ₹25,000
Rate of Interest
Min 5%
Max 25%
Loan Tenure
5
months
Min 3 months
Max 72 months
Submitting documents need not be a complicated process. At Moneyview, 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 |
At Moneyview, we focus on making loans affordable for our customers. Check out our lending partners’ fees below -
| Fees & Charges | Amount Chargeable |
|---|---|
| Interest Rate | Starting from 14% per annum |
| Loan Processing Charges | Between 2% to 8% of the approved loan amount |
| Penal charges on Overdue EMI | 24% per annum plus applicable taxes, if any |
| NACH Bounce | Rs.500/- each time |
| Loan Cancellation |
|
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 Moneyview and benefit from affordable interest rates and hassle-free application. Visit the Moneyview digital lending app or the website for personal loans now.
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, Moneyview clearly specifies its credit score requirement, which makes it possible for the applicants to know in advance if they are eligible for a personal loan for debt consolidation from Moneyview.
Moneyview’s lending partners require its applicants to have a minimum CIBIL score of 650. In addition to the bureau credit score, our lending partners use their in-house credit score models to assess the creditworthiness of applicants.Debt consolidation may work for you if you are having issues making multiple loan repayments and keeping track of them. By going for a debt consolidation loan, you could reduce the number of outstanding loans and easily manage one 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 for a debt consolidation loan. The consolidation loan is beneficial for you only when the new rate of interest is lower than the 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.
Yes, debt consolidation can be beneficial if you want to improve your financial planning.
Disclaimer
The starting interest rate depends on factors such as credit history, financial obligations, specific lender's criteria and Terms and conditions. Moneyview is a digital lending platform; all loans are evaluated and disbursed by our lending partners, who are registered as Non-Banking Financial Companies or Banks with the Reserve Bank of India.
This article is for informational purposes only and does not constitute financial or legal advice. Always consult with your financial advisor for specific guidance.
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