It’s a financial dilemma that many people face: keeping track of multiple NDE dates each month. There is a simple solution: debt consolidation using a personal loan.
What is debt consolidation?
As the term implies, this is an arrangement in which existing debt is consolidated or reduced to a single loan. Debt consolidation is done by large companies, but it is also recommended for individuals who have multiple loans in their name. This is done by borrowing a instant personal loan online loan application or traditional lender to close other loans. Debt consolidation is a good practice because:
- This simplifies the management of loans. Suppose you have a home loan, car loan, and credit card loan in your name. Each will have different EMIs to pay on different dates of the month. When you consolidate the loan into a personal loan, you only have one IME to pay.
- Financial management is becoming much more streamlined. The practice of consolidating debts frees up your income for other expenses after deducting the monthly EMI personal loan
- Instant online personal loans have shorter terms than secured loans. Thus, debt consolidation with the help of a personal loan allows you to get rid of your debts much faster.
- Your credit score improves when you borrow a personal loan to repay and consolidate multiple loans.
- Properly done debt consolidation makes it easier to get larger secured loans in the future.
Why choose a personal loan to repay a debt?
Usually, taking out a loan to repay another loan is poor financial planning. It keeps you in debt. But a personal loan, with its shorter duration and relatively smaller amount, allows you to get out of debt faster. It can be borrowed for a maximum of 48 months for a maximum amount of Rs 5 lakh. You also have the option of entering the loan earlier than the tenure.
Instant personal loans are also easier to obtain – when borrowed from a leader loan application In India, it only takes a few steps, minimal documentation and a hassle-free application process to get the money paid into your account quickly. Leading loan applications in India are partnering with leading NBFCs in the country to verify credit and disburse loan amounts.
How to get a personal loan
First, install the loan app on your smartphone. Make sure you choose a reliable, top-notch, bug-free loan app with good user ratings and transparent application and payment processes.
- Configure the app and study the loan product in detail. Carefully study the eligibility criteria, interest rates, repayment terms, fee schedule, penalties, required documents, etc.
- Apply for a loan when you need it, after calculating how much you need. If it exceeds your loan eligibility with the app, you must either opt out of applying or contact the app to find out how to increase your eligibility.
- Study the list of required documents for the application. Make copies of the required documents and self-test them. The set is collected from your home and delivered in your name at the branch
- The app checks your personal and financial documents. When everything is correct, the app notifies you of the loan approval. Note that the app may also notify you of the rejection, but this only happens in extreme circumstances (you have no source of income, you recently quit your job, your document information does not match, etc. .) The best loan applications handle the application even for those who are new to the world of loans
- From the following month, start repaying the loan in a series of installments from your salary or business income
(ThePrint ValueAd Initiative content is a paid, sponsored article. ThePrint reporters are not involved in reporting or writing.)
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