If you own multiple loans, there are chances you might be spending a significant portion of your income repaying them, i.e. in the form of EMIs. In such scenarios, you must consider opting for a particular loan which helps in repaying all those loans in one single instalment. This is possible only through a personal loan for debt consolidation. This way, all your monthly EMIs get consolidated into a single EMI and the sum borrowed could be used for repaying the existing debts. But how is this beneficial?
EMIs get reduced significantly
When you decide to repay more than one loan, the total sum repaid in EMIs can be high. But with debt consolidation personal loans, you can reduce the total payable EMI as compared to what you were paying earlier. Also, when you take out this loan for repaying the existing debts, you essentially need to pay only for the new one, which potentially reduces the total EMIs you need to repay.
The interest rates and EMIs remain fixed for all the loans
Every loan comes with a different interest rate. As a borrower, keeping track of the loans, interest rates, and tenures can be a hassle. You need to remember the dates for all the EMIs to avoid any defaulting as well. With the help of instant personal loan for debt consolidation, you need not worry about these anymore. You get a fixed interest rate on them, and the loan gets repaid on a fixed date. The EMIs are fixed too.
Loans get disbursed instantly
Whether you apply for an offline or online personal loan, you need not provide any collateral, which is the best part. If you have pledged any securities for the existing loans, you can get them back when you repay these with the debt consolidation loan. Since you need not offer any collateral, the loan gets processed at a quick pace. The application process is also simple, where you need to fill the application form and submit some relevant documents like ID, address, and income proofs.
Repay over fixed timelines
Every loan you take must be repaid within the stipulated time frame as mentioned on the loan agreement. With multiple loans, you must keep track of the different repayment tenures, which makes the repayment process complicated. But if you consolidate your loans with a personal loan, you clearly understand the duration of the new loan and accordingly plan your monthly finances. Since it helps you repay the loans, you can also prepay them flexibly, only if you have provisions for the same.