Use a Personal Loan for Debt Consolidation to Reduce Your Monthly EMI Payments, Calculate Your Savings Now28 June, 2018
Sometimes we have a run in with several financially imprudent decisions at once or an emergency situation forces our hand into spending more than our budget. Repaying such liabilities can be taxing on your finances and your nerves. If you are tired of constantly worrying about missed EMI schedules and late payment fees, consider consolidating all your dues into a single loan.
A debt consolidation loan allows you to repay debts with a personal loan. For example; if you have three credit card loans totaling Rs. 1,35,000/- with an average interest rate of 18.05%, you can consolidate them into a single loan at a lower interest rate.
The above comparison shows how a personal loan for debt consolidation from Monexo can shave off as much as Rs. 7,007 from your interest payments. You also pay a much lower EMI for repaying the principal amount.
The benefits of applying for a personal loan for debt consolidation
- Allows you to manage multiple loans by converting them into a single loan.
- It’s an unsecured loan, so you don’t have to worry about losing any assets.
- Offers a much lower interest rate than your credit card issuer or personal finance agency.
- Eases your monthly finances by reducing the EMI amount.
- Helps improve your CIBIL score as you are able to repay all your sundry debts in time.
Who offers a personal loan for debt consolidation?
In essence, a debt consolidation loan is a personal loan. So, you can apply for a personal loan with any banking or finance institution and use the amount for debt consolidation. However, the scenario is totally different if you consider factors like loan application process, interest rate, EMI schedule, processing fee, and prepayment charges.
Banks: Both public sector banks and private sector banks offer personal loans in India. However, the loan application process is marred by lengthy verification and approval proceedings. Personal loans approvals by banks are also subject to your CIBIL score and may get rejected if your score is not good.
Private Finance: Private financial institutions also offer personal loans in India. They have a faster approval process than banks but may charge higher interest rate and several fees and surcharges for their services. Most private finance institutions also rely on your credit rating for loan approvals.
P2P Companies: Peer to peer financing companies like Monexo offer the most hassle-free personal loan application in India. The loan application process is completely online and since there are no middlemen, there is a nominal processing fee. Interest rate calculation is done through a risk-pricing model and can be as low as Rs. 3,325/- per lakh.
Advantage of applying for a P2P personal loan
- Online loan application process takes only 5 minutes to complete.
- Loan approvals and disbursal time as low as 4 to 24 hours.
- Risk-pricing model for interest rate calculation means you can get a personal loan even with a low CIBIL score.
Process to apply for a P2P personal loan with Monexo
Simply visit the Monexo India website and register as a borrower. Once you upload the required documents, Monexo will review your application and revert with a loan offer. Accept the offer to get your loan listed on the P2P marketplace for funding.
Monexo has kept the eligibility and document requirements for getting a personal loan to a bare minimum. To get a Monexo personal loan you need to have,
- Minimum salary of Rs. 15,000/- per month.
- A salary account showing the salary credit.
- Minimum 3 months of work experience.
- Digital copies of:
Calculate your savings now by using the Monexo EMI Calculator for personal debt consolidation.