If you’re reading this, then you are living a modern life. Modern life needs comforts and amenities that require money in various forms. We need a house to live in that requires a home loan at some point in life.
We need credit cards to make convenient online payments. A personal loan helps us overcome an unwanted financial situation and buy appliances and gadgets.
Multiple loans like Personal loans, credit cards and BNPL (Buy Now Pay Later) make it challenging to manage. Some challenges are:
- Remembering Multiple Timelines
Every loan has its timeline to follow, bill dates, minimum payment dates and late fee dates. Remembering all these timelines is a stressful task.
- Ensuring Funds Availability
Remembering the timelines is one aspect. Ensuring that funds are available in our account for the auto-debits is another. Every bounce not just incurs charges albeit also spoils the credit score
- Maintaining Multiple Financial Relations
Each loan, irrespective of the amount, establishes a relationship with the respective financial institution. Maintaining multiple relationships is time-consuming. In case of any unwanted circumstances, the borrower needs to reach out to each lender for modifications.
- Higher Cost
A small personal loan is costlier than a typical loan amount. Similarly, Credit Cards and BNPL loans have a significantly higher interest rates. Having multiple loans usually ends up incurring a higher cost of repayments.
How to manage multiple loans?
Managing multiple loans is not a great experience. Consolidating multiple loans into one personal loan is known as a Debt consolidation loan.
A Debt consolidation loan has several benefits:
- Reduced EMI
A debt consolidation loan combines multiple loans like a small personal loan, credit cards and other loans. The combined loan is usually available at a lower interest rate by choosing the best offer. Thus, a debt consolidation loan reduces the EMI burden.
- Single Financial Relationship
A debt consolidation loan helps the borrower by providing a single window for changes or requests. A single relationship makes it more valuable for the financial institution and helps with timely offers and advice. The personal loan documents required for a debt consolidation loan are also simple.
- Less Stress
Having one loan to manage, repay and monitor consumes lesser time and bandwidth, reducing stress and anxiety.
- Single Payment Date
A debt consolidation loan has a single payment date. A single date helps borrowers ensure the fund’s availability on the due date.
How to get the best Debt Consolidation Loan?
Borrowers should check the loan offers from leading financial institutions. Applicants should evaluate interest rate, personal loan documents required, processing fee and terms to choose the best available loan.
However, applicants should avoid making multiple loan applications to prevent their credit score from taking a hit.
We recommend using the service of LoansJagat to find the best debt consolidation loan.
LoansJagat is India’s leading platform to help individuals and companies get the best loan products.
How to get the best Debt consolidation loan using LoansJagat?
LoansJagat helps to get the best Debt consolidation loan using the below six steps:
- Enter basic details
Applicants need to enter basic details like name, age, income and loan requirements.
- Compare loan offers
LoansJagat provides loan offers from leading financial institutions. Applicants can use the technology tools by LoansJagat to compare the loan offers, highlight the key elements and differences to choose the loan that suits their requirements.
- Submit required documents
Submit the personal loan documents required using the LoansJagat platform. LoansJagat also provides a dedicated loan officer for any assistance or guidance.
- Discussions with lender
The financial institution discusses the loan terms, might undertake physical verification as per the requirements. LoansJagat provides a real-time status tracking facility.
- Sanction
LoansJagat declares the sanctioned loan amount, rate of interest and loan tenure.
- Disbursal
The loan amount is disbursed directly to the applicant’s loan bank account.
What are the documents required for the debt consolidation loan?
The document requirement is similar to personal loan documents required. Applicants need to provide ID and address proof along with income proof and the details of the existing loans.
Does LoansJagat charge any fee?
No, LoansJagat offers these services without any charges to the users. LoansJagat has a privileged partnership with leading financial institutions that helps them offer these services to consumers.
