Unable to pay multiple loans?

26 August, 2019

By Aishwarya Raj

Are you juggling with multiple personal loans borrowed from different banks and finance companies? This might be the right time to consider a “debt consolidation loan”.
A debt consolidation loan is combining more than one loan into a new loan. Here, the amount received from the debt consolidation loan is used to pay off multiple loans. Debt consolidation can combine a variety of loans and outstanding dues like credit card balances, personal loans separately or all together.

Consider that you are having different unsecured loans with varying interest rates, balances and payoffs. Consolidating it will give you a single interest rate and a single lender. This may result in a comparatively lower interest and a single time payment in each month.

If a person is availing a debt consolidation then he/she will be making it easier by simply signing a single cheque instead of 4 -5 different cheques every month with the creditors.

 

Example

The below scenario can give you a better understanding about how this debt consolidation works.



Consider that you have an outstanding loan of Rs 3,00,000 which includes a tenure of 3 years with a 20% pa interest rate. There is an another loan of Rs 2,00,000 which includes a tenure of 3 years with the interest of 24% pa. So, for every month, it includes a payment of Rs 11,149 from the first loan and Rs 7,847 for the second loan. In such cases, the borrower may reach out to any debt Consolidation Company to completely lessen up the repayment. So, by consolidating both the loans, the person could save Rs 33,101.

Ok, What are the benefits ?

      • There is only one single monthly payment for a debt consolidation loan instead of multiple payments done for various loans.
      • There are higher chances of getting a lower interest rate compared to the previous loans.
      • Loans are offered for a time period which is typically of some number of years, this means the person has a time period to clear his/her debts.

 

How to apply for a debt consolidation loan ?

Lots of borrowers at Monexo have opted for a debt consolidation loan and have benefited greatly in the form of savings and a comparatively lower interest rates. To apply for a Debt Consolidation loan at Monexo, you need to follow the following steps

Go to https://www.monexo.co/in/campaigns/debt-consolidation-loan

        • Fill the online form and upload required documents
        • Get quick approval and funding.
        • The loan amount is disbursed to the respective bank/NBFCs for your existing loans.

 

The perfect plan

You can go for a debt-consolidation loan which may have an effective solution for your financial situation. This method has helped many people to handle on their own finances judiciously. When it comes to stabilizing your financial situation, debt consolidation may be a good decision for you.