A personal loan for debt consolidation is a collateral-free loan that you can use to pay off your high-interest debts. Consolidating your debts is an effective way to pay off your debts and credit card balances and simplify your payments using just one loan. Depending on your amount owed and your loan terms, it may also help you save money and time.
Before you decide to take a personal loan for debt consolidation, it is crucial to factor in your financial goals and condition.
Times When Debt Consolidation is a Lucrative Option
Personal loans are not restricted to any end-use, due to which you can use them for almost anything you want, including weddings, medical emergencies, travel, education, home renovation, or any other expense you are falling short of funds for. However, if you are considering taking it for debt consolidation, these are the right times you can take the best advantage of it.
When you have a high credit score: Since personal loans are unsecured, they are often offered to borrowers with a good credit score. If you have a credit score of 725 or over, you have high chances of availing a personal loan with favorable interest rates and terms.
When you are paying a high-interest debt: On average, personal loans have an interest rate that’s lower than only the rate on credit cards. Compare the interest rates offered by different lenders and choose the one that is offering a lower interest rate than what you are paying now. If you apply for a personal loan with a lower interest rate and consolidate your debts, then you can save a significant amount of money in the long run.
When you have a robust repayment plan: Personal loans have a fixed repayment term, which means you have to pay a fixed amount of EMIs for a specific period of time. So, you need to keep a balance in your income and expenses and assign some amount for the payment of your EMIs. If you have a high debt-to-income ratio, then taking a personal loan and consolidating your debts might not be a good option for you.
How to Get a Personal Loan for Debt Consolidation
Many lenders offer unsecured personal loans that you can use to consolidate your debts. The application process is simple and you may get your loan approval within 15 minutes*. These are the few simple steps you have to take to get a personal loan for debt consolidation:
- Visit the Clix Capital website
- Fill up the personal loan application form
- Share some essential documents with us to prove your identity, address, and income. If your KYC is linked with your PAN card, you will not need to upload your documents anywhere. You can have them verified online within a matter of minutes.
- Once you receive your loan approval, accept the loan offer
- Activate the e-mandate for regular EMI payments on time
How to Qualify for a Personal Loan?
NBFCs like Clix Capital offer personal loans to all having a good credit history and a credit score of 725 or higher. However, you need to meet certain eligibility conditions to qualify for their personal loans. For Clix Capital’s personal loan, you need to meet the following criteria:
- You must be between 25 to 58 years of age
- Your monthly income should be at least ₹ 25,000
- You must be a salaried individual and must be employed with the current employer for the past 6 months minimum
- You must have a work experience of at least 12 months in the same industry
If you fulfil the above-mentioned eligibility conditions, you have to prove your identity, address, and income by sharing the following essential documents:
- 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
Choosing the Right Lender to Get a Personal Loan for Debt Consolidation
The more lenders there are, the better chances you have to find the best lender for availing a personal loan. Start your search with an NBFC that offers the lowest interest rates on personal loans with no end-use restrictions. If you meet their eligibility criteria, have a look at their repayment terms, other fees and charges, customer service, and other crucial aspects. Once you are satisfied with these conditions, ensure that their application procedure is hassle-free and their approval process is as quick as possible.
Clix Capital is one of the most trusted NBFCs in India offering personal loans for varying purposes, including debt consolidation. We offer competitive interest rates on our personal loans and approve them in as little as 15 minutes*. Apply for a personal loan of up to ₹ 25 lakhs and repay it in 12 to 48 months, depending on the loan term you select.
You can also reach out to us at firstname.lastname@example.org or call us at 1800 200 9898
* T & C Apply