Posted by: akbar qurashi Repiles0 Posted:2020-02-25 10:25:19 ISTUpdated:2020-02-25 10:25:19 ISTWritten by - CreditMantriarticle
A loan is itself debt. To pay off your existing debt, taking a loan can increase your debt burden as a loan comes with interest payment. However, it also depends on the type of debt you have at the moment.
For example, in case you want to consolidate all your debts and pay off as a single one, you can opt for a debt consolidation loan. This can help you make a single payment each month to one lender. However, you need to compare the interest rates on existing loans and the new loan. Higher interest on new loans means higher repayment.
Debt consolidation loans are generally offered to individuals who have a low credit score with multiple debts. It can help them pay off the debts and increase the credit score as well. The following are some of the popular lenders who offer debt consolidation loans.
Bajaj Finserv Debt Consolidation Loan
Loan amount up to Rs. 25 Lakhs
Flexible tenure
Attractive interest rates
Disbursal in 24 hours
Pre-approved offers and deals
Minimal documentation
The quick online application process
Lendbox Debt Consolidation Loans for Credit Card Settlement & Informal Debts
Loan amount from Rs. 25,000 to Rs. 5 Lakhs
Interest rate starting from 11.49% onwards
Paperless process
No pre-closure charges
Your monthly income should be a minimum of Rs. 25,000
You must be a minimum of 22 years old
You must have an Indian bank account
You must have a valid ID Proof
You must be an Indian resident
Processing fee 2% to 6% of the loan amount
Loan tenure 3 to 60 months
DBS Refinance Loan
For transferring your high-cost loan or consolidating all your debts
Online application process
Attractive interest rates
Minimal documentation process
RupeeCircle Debt Consolidation Loan
Tenure: 3 to 24 months
No prepayment charges
Approval in 2 to 3 working days
Fixed interest rates
Faircent Debt Consolidation Loan
Loan amount up to Rs. 10 Lakhs
Interest rate from 12% to 36%
Tenure: 6 to 36 months
I2iFunding Debt Consolidation Loan
Tenure from 3 months to 24 months
Loan amount is up to Rs. 3 Lakhs
Fixed interest rates based on credit profile
Minimum credit score requirement is more than 600
Should have a minimum monthly salary of Rs. 20,000 who live in their own house and Rs. 25,000 for rented house applicants.
No prepayment penalty
If you are looking for a loan to pay off your debts, you can check your eligibility here.