Personal Loan for Debt Consolidation
Personal loans are a sought after product due to its ability to fund various expenses. While for some it may be marriage expenses, others might need it for miscellaneous expenses such as fixing a car or repainting the garage. But a very useful feature of a personal loan is the ability to consolidate debts.
Debt has a sneaky of way of snowballing and soon, the constant worry of making payments will start to seep into other aspects of a borrower’s life. Keeping track of various loan payments is also a hassle. Personal loans for debt consolidation combine the various balances into one single bill that has to be paid on a monthly basis. Even the interest rate charged will be new. If the interest rate of the personal loan for consolidation is lower than the previous interest rates being paid, then personal loans for debt consolidation is a viable solution.
Benefits of debt consolidation include bundling up various payments into one single bill and having only one payment to make. Fixed rates of interest also allow borrowers to set aside the required EMI amount for a few months in advance as well. Below are a few popular personal loans that can be used for debt consolidation.
Citibank Personal Loan for Debt Consolidation
- The Citibank personal loan is the apt choice for debt consolidation. The amounts offered under this loan are high enough to finance marriages and consolidate debt at the same time. The maximum loan amount, subject to approval is Rs 30,00,000.
- Acquiring the loan is a hassle free process in itself. The loan amounts are also disbursed quickly and provided all documents are in place, the loan amount is disbursed in as little as 48 hours.
- Consolidation is done to make managing various loans easier. The Citibank loan goes one step above and even offers ease of management of the personal loan itself. Tenure options for loans range between 12 months and 60 months allowing borrowers to select a tenure and EMI that they can manage.
- The loan is also a fixed rate loan. The advantage of fixed rate loans is that borrowers know exactly how much EMI they would need to pay. This allows them to set aside the necessary funds for repayment on those months when they are strapped for cash.
- The Citibank personal loan allows for quick closure. As long as the loan has completed 12 months, borrowers can either close the loan fully or make partial prepayments.
- While the loan amount itself can be used for debt consolidation, the Citibank personal loan also offers a consolidation service which includes consolidating credit card debt and transferring of previous outstanding personal loans.
HDFC Personal Loan for Debt Consolidation
- HDFC personal loans can be availed to meet a wide variety of expenses including debt consolidation. Availing the loan is a hassle free process. Borrowers can even find out their loan eligibility within one minute.
- The personal loans from HDFC can even be availed by first time borrowers. Borrowers get the added benefit of being able to reach out for assistance at any time through different channels such as SMS, Phone Banking, Webchat, Click2Talk, etc.
The HDFC personal loans provide the borrower with a Critical Illness cover of Rs 1 Lakh and a Personal Accident Cover of Rs 8 Lakh. These policies charge a nominal premium which is deducted from the loan amount during time of disbursal.
- The loan has a processing fee of 2.25% of the loan amount. The minimum processing fee is Rs 1,000 and the maximum fee is Rs 25,000 for salaried borrowers.
- Like the Citibank personal loan, HDFC personal loans also offer consolidation services through the transfer of pre-existing personal loans. Loans that have been transferred attract lower interest rates of 11.49% and charge a minimal processing fee of Rs 999.