If you are in excessive debt, it can be stressful as it can potentially affect your short and long term financial goals. Also, if you’re considering saving for the future, soaring interest rates and mounting EMIs might use up all your savings. Thus, personal loan for debt consolidation is a great solution to avoid emptying the savings and get rid of a high-cost debt at the same time.

Why Personal Loans for Debt Consolidation?

Debt Consolidation loan helps turn high-interest rates, including credit card bills into a single low-interest payment and can significantly reduce your total debt. Further, opting for a personal loan is one of the most sought after solutions to consolidate debt. It enables you to borrow funds for several purposes like marriage, travel, medical emergency, vehicle, home renovation or debt consolidation.

Features and Benefits of Personal Loans for Debt Consolidation

Instant Approval: One of the most significant features of a personal loan is that it comes with quick and timely approval. Once you apply for a loan, the NBFC or bank verifies and approves your loan application in a short span..

Fast Disbursal: Once necessary documents are submitted, and the loan application is approved by the lender; the funds are disbursed immediately into your bank account. This enables you to tackle debt instantly without worrying about crossing the deadline.

No Collateral Requirement: Unlike other financing options, a personal loan doesn’t ask you to submit security or collateral to avail funds. This is one of the major benefits of personal loans as you don’t have to put any valuable asset to risk.

Flexible Repayment Method: The reason for landing up in debt is the inability to repay on time. However, personal loans come with a customised repayment method which means you can opt for a repayment period from 12 months to 48 months that suits you the best. This ensures that you don’t face any hassle when it comes to repaying the loan.

Loan amount up to 25 lakhs: Personal loans are not restricted, and you can apply for a loan amount ranging from Rs 1 lakh to Rs 25 lakhs. It enables you to fulfill all your desires  along with restoring any frail economic condition.

Banks and NBFCs Offering Personal Loans for Debt Consolidation in India

Several banks and NBFCs are offering personal loans for various purposes. However, here are three best options that you can consider:

Clix Capital

When it comes to secure a reliable source of funds to bolster the finances, there’s nothing more fitting that Clix Capital’s personal loan for debt consolidation. The leading digital NBFC provides instant approval and quick disbursals without any collateral requirement. Moreover, it ensures a hassle-free process and minimal documentation.

HDFC Bank

You can easily get a personal loan from HDFC Bank to consolidate your existing debts. Furthermore, the bank lends any amount between Rs 50,000 to Rs 40 lakhs that can be repaid within 60 months. The bank doesn’t ask for any security or collateral to avail finances.

Bajaj Finserv

Bajaj Finserv’s personal loan for debt consolidation allows you to apply for a loan amount up to Rs 25 lakhs. Moreover, the financial lender provides a flexible repayment method, minimal documentation and pre-approved offers to selected consumers.

Will Consolidating Debts with a Personal Loan affect your CIBIL Score?

In case you have multiple existing debts, tracking EMI payments turn out to be a hassle. If you miss any of the EMIs within the deadline specified, you might have to pay a penal fee. Moreover, there is a high chance that missing EMI payment can affect your CIBIL or Credit score, making it challenging for you to avail loans in the future.

In order to avoid such situations, you should consider opting for a personal loan to consolidate debts. It will make repayments relatively convenient, and you’ll only have to pay a single EMI every month. It reduces any chances for you to miss any EMI repayments. Thus, it will help you to maintain a positive CIBIL score.

Debt consolidation loans in India serve as a great help if you’re dealing with a high amount of debt. Moreover, there are several advantages of personal loans for debt consolidation. You can consider Clix Capital as the NBFC provides disbursal of funds within a short span of 24 hours with various other features of the personal loans including minimal documentation, hassle-free process, customised repayment method, among many others.