Manage Money

5 Best Debt Consolidation Funds in India in 2020

Managing multiple debts can be a huge headache. You have to oversee the various debt accounts to keep updated. Managing multiple debts can take a toll on your health and finance alike. Each of such debts has their separate EMI payment schedules and interest rates. It can overwhelm you in a hurry.

So why go through all these problems, when there is a way out?

All you need to do is to take one single loan to consolidate all the rest. When you take a single debt consolidation loan, you make it simple and easy on yourself to make all monthly payments. It also gets easier to pay off the interest faster since the interest rate of all the debts together is lower. In other words, you lose less money and save more, especially when you can pay back faster. By debt consolidation, you may get the chance to make one simple monthly payment for all debts in one place. How cool is that?

Another great thing about this is that debt consolidation allows you to repay any loan type. Thus, it is flexible as well. Because of this, it pays to choose your personal loan for consolidation. Doing so saves you money which you would otherwise have to pay on interest. Early payoff fees, finance charges, and minimum credit score. 

In this article, you will see some of the best loans for debt consolidation.

But first, we have to learn about…

Benefits of debt consolidation

  1. For many people, this is one of the ways to save considerable money on monthly payments, loan interest and other charges. Since these are charged separately for all different debts, the overall money you need to pay is more. But when debt consolidation comes, all these debts are consolidated in one single fund, and so all charges are comparatively less. Debts therefore are easier to pay off, which helps to improve your credit score as well.

  2. If you have several debts with a high interest rate, you can easily save on this interest by getting a lower rate at a debt consolidation fund. Credit card tariffs are considerably lower as well, so you can save money here as well.

  3. If you choose a longer term or tenure for the debt consolidation loan repayment, you won’t miss payments.  You will be paying more overall, or in total, by you’ll find the monthly payments will be easier to make. This is because such funds reduce your monthly payments. However, it does not change the interest.

  4. With a debt consolidation fund, your credit score will soar, when you pay back on time. This can un-do past damage as well.

Here are the best debt consolidation funds or loans in India

SBI Xpress Credit Personal Loan

  1. Loan amount is till Rs. 20 lakhs

  2. Interest rate is between 11.90% to 17%

  3. Loan tenure is till 6 years

  4. Minimum income needed is Rs. 15000 monthly

  5. Processing fee is 1% of the loan amount

Bajaj Finserv Debt Consolidation Loan

  1. Interest rate is 12.99% annually

  2. Loan limit is 25 lakhs

  3. You need minimum documentation to get the loan

  4.  Loan is given in 24 hours

  5. Tenure is from 2 years to 5 years

Citibank Personal Loan

  1. Loan amount is Rs. 30 lakhs

  2. Loan is disbursed in 2 days

  3. Loan tenure is from 2 years to 5 years

  4. Interest rate is from 10.50% to 17.99%

  5. Loan processing fees is between 2% to 3% of loan amount

  6. Minimum documentation and easy processing

Axis Bank Personal Loan

  1. Easy documentation without extra charges

  2. Loans start from Rs. 50000 Rs. 15 lakhs

  3. The interest rate is from 16% to 24% per year

  4. Loan tenure is from 1 to 5 years

HDFC Bank Personal Loan

  1. The loan amount is Rs. 40 lakh max

  2. Interest rates is from 11.25% to 21.50%

  3. Loan processing fees is 2.50% of loan amount

  4. Maximum loan tenure is 7 years

  5. Minimum salary requirement is Rs. 15,000

  6. Loan can be applied for online and offline

Getting another loan to consolidate all the rest means that you are taking a big headache off your shoulders. If you have a bad credit record, this is even more important. Debt consolidation, therefore, helps to manage our wealth and finances better.

 

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