Personal Loans for Debt Consolidation
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?
The only answer to all these questions is a Debt Consolidation Loan.
What is a Debt Consolidation loan?
You must have come across this term very often but wondered about the right meaning of this term. A debt consolidation loan is nothing but a loan which can consolidate all your existing loans into one single loan.
For Example: You have 2 personal loans for Rs 25000 and Rs 55000 respectively. In addition, you have a credit card outstanding for Rs 20000 and a 2wheeler loan for Rs 75000 So the total amount of debt comes up to Rs 175000. But these debts may have different payment dates and may have been availed from different banks. So you would need to make 4 separate payments for these loans which makes it difficult to manage and keep a track of the repayments.
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 debt.
This way it gets easier for you to manage and maintain your debt.
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 meets the requirement of a debt consolidation loan and is easier to avail than most other loans like a home loan or a vehicle loan.
- No Requirement of Collateral/Security:
A debt consolidation can be availed without furnishing any collateral or security. This makes it convenient for anyone wishing to consolidate their debts to do so without worrying about making arrangements for collateral.
- Flexibility to go in for a Customized Loan Amount:
A debt consolidation loan amount that is suited to your requirements can easily be availed under a debt consolidation loan. This ensures that no undue pressure is put on the applicant to choose a particular loan amount.
- Quicker Disbursal:
Fast debt consolidation personal loans are now available in a timeframe as short as 2 hrs from a leading fintech lender like Money View. So no you need not wait any more to set your finances in order.
- Brings About Ease in Loan Management:
Managing multiple loan repayments could be a reason to miss EMI dates, thereby seeing a drop in credit scores and ensuing difficulty in availing further loans. Going in for a debt consolidation loan can help you avoid all of these pitfalls.
- May Boost Your Credit Score:
By opting for a debt consolidation loan, you would 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.
Where Can You Get a Debt Consolidation Loan?
Banks or other financial institutions do not offer a special category of loan called Debt Consolidation loans. Instead, a personal loan which does not have any end-use purpose attached to it can be used as a debt consolidation loan.
Hence, a debt consolidation loan can be availed from banks, non-banking financial institutions or any fintech lenders.
Money View is a leading online personal loan lender from which you can easily avail a loan for debt consolidation either on the loan app or on the website within a timeframe of 2 business hours.
How Can I Avail a Debt Consolidation Loan?
A personal loan from a bank or a Non-Banking Financial Institution can be applied by visiting their branch. The usual procedure of submitting a physical application and other supporting documents by visiting the branch will have to be followed.
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 Your 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 in 2 hours of approval
Eligibility Conditions for Availing a Debt Consolidation Loan
Debt consolidation can relieve you of many unnecessary debt related issues. However, many individuals have a question on their minds, “Can I get a debt consolidation loan?”
As with any loans, debt consolidation personal loans also come with their own set of eligibility conditions. They could be:
- Credit Score:
A good credit score is a mandatory requirement for availing any sort of credit, be it a loan or a credit card. Debt consolidation loans are unsecured in nature, hence will require a high level of creditworthiness for an applicant to make the cut to be eligible to avail of a debt consolidation loan. The exact level of credit score required is subject to conditions set by the respective lenders.
- Minimum Income Requirement:
Lenders may also set a minimum income requirement to be able to avail of a personal loan for debt consolidation. When you are in need for a loan to consolidate your debt, a lender who allows loans at a low minimum income requirement like Money View may be good. The minimum income requirement there is 13500.
- Minimum years of Salaried Employment:
Certain lenders may place minimum years of salaried employment as one of the eligibility conditions to avail of a personal loan for debt consolidation.
- A particular area of Residence:
Your city or town of residence may also bear importance when you apply for a loan. For Eg: Certain fintech lenders allow loans only to inhabitants of a particular cities/towns.
Eligibility Conditions to Avail a Money View Personal Loan for Debt Consolidation
While there can be many conditions to be eligible for a debt consolidation loan, the eligibility conditions for a Money View easy personal loan for debt consolidation is extremely transparent and simple. The basic eligibility conditions being:
- Be salaried or self-employed
- A monthly in-hand income of ₹13,500* or more
- Income should be received in a bank
- Min Cibil score of 650 or Experian score of 750
- Should be aged between 21 years and 57 years
Is it good to avail of a Debt Consolidation Loan?
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.
Debt Consolidation Loans for those with Bad Credit Score
An individual may end up with a bad credit score due to a number of reasons and may still be struggling to manage multiple debts. A debt consolidation loan may be extremely helpful for such individuals. But will a debt consolidation loan be available for those with bad credit scores?
There isn’t a clear answer to this question.
Debt consolidation loans to 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 650 or Experian score of 750 to be able to apply for its personal loan. In addition to the bureau credit score, Money View uses its in house credit score model to assess the creditworthiness of its applicants.
Are you looking to consolidate your existing loans into one single loan? Do you want to simplify your debt management? Apply for a personal loan for debt consolidation today from Money View!
Write to us at email@example.com or call us at 080 4569 2002 if you need any assistance in applying for a debt consolidation loan or have any queries on the same.