Debt consolidation refers to the process of combining several small-size debts into a single bigger debt, with which you combine several monthly payments and EMIs into one single repayment. Doing this helps ensure that you do not miss any payment due to delay or confusion. Consolidating your debts with personal loan application saves you from juggling several payments every month.
Many NBFCs are offering personal loans these days at lower interest rates so that you can even save big on your EMIs by consolidating them. It is the right way to club all your debts into a single one so that their payment can also become easier and more manageable. Personal loan for debt consolidation is a standard financial product in India. Let us have a detailed look at it.
Reasons to Consider Debt Consolidation
These are the main reasons why you must consider applying for a personal loan for debt consolidation:
Improved Credit Score: Once you consolidate your debts with a personal loan and pay off your EMIs regularly, your credit score will increase gradually. However, you must check your credit score before submitting your personal loan application, as an NBFC will approve it only if you have a good credit score of 725 or above.
Reduced Monthly Payments: By consolidating your debts with a personal loan, you can split your current EMIs into affordable monthly payments across a longer tenure. By doing this, you can manage your debts in a much better way and have enough money in hand to cover your other expenses.
Reduced Interest Rate: Most credit cards and other loan types have a higher interest rate than personal loans. By consolidating those debts with a personal loan, you reduce your applicable interest rates and save money over time.
Who is Eligible for a Personal Loan for Debt Consolidation?
Taking a personal loan and consolidating your debts seems to be an excellent idea for most. However, since personal loans are unsecured, creditors are strict towards their eligibility conditions and approve your personal loan application only if you fulfil their criteria. To apply for a personal loan from Clix Capital, you have to fulfil the following conditions:
- You must be between 25 and 58 years of age
- You must have a monthly income of at least ₹ 25,000
- You must be working with your current employer for at least 6 months
- You must have work experience in the current field for a minimum of 12 months
Apart from these, your credit must be above 725, based on which the lender will determine your creditworthiness.
You have to fulfill the lender’s minimal documentation requirements to prove your identity, address, and income if you are eligible. For Clix Capital, these are the only personal loan documents required:
- Duly filled online application form
- Recent passport size photograph
- Identity proof like Aadhaar Card or PAN Card, or government ID for government employees
- Address proof like Aadhaar Card, Voter ID, passport, driving license, etc.
- Income proof, including your last month’s payslip or current year’s Form 16
You do not need to submit or upload these documents anywhere. If your KYC is updated with Aadhaar and PAN, you can have your documents verified online and get instant loan approval within 15 minutes*.
Preparing for Debt Consolidation
If you meet the lender’s eligibility conditions, documentation requirements, and credit score threshold, you must do some preparations before submitting your personal loan application and consolidating your debts. These are a few steps you must take:
- Make a list of all your existing debts
- Exempt the loans that are almost near the end of their loan tenure
- Check the pre-closure fees of your existing loans
- Compare lenders based on loan amount, interest rate, repayment tenure, and other factors
- Get ready for the selected lender’s application procedure
Steps to Apply for a Personal Loan for Debt Consolidation
Now that you have made up your mind to apply for a personal loan and consolidate your debts, these are the steps to follow:
- Visit the Clix Capital website
- Check your credit scoreand ensure that it is more than 725
- Fill up the personal loan application form
- Get your documents verified online that takes just a few minutes. However, if your KYC is not updated, you will have to provide some necessary details
- Once you receive your loan approval, accept the loan offer
- Activate the e-mandate for regular EMI payments on time
Considering taking a personal loan for debt consolidation? Fill up the personal loan application form at Clix Capital and complete the process as mentioned above. We offer personal loans of up to ₹25 lakhs with flexible repayment tenure from 12 to 48 months. Apply now and manage your debts the much easier way than before!
You can also reach out to us at email@example.com or call us at 1800 200 9898
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