6 Best Debt Consolidation Loans in India 2020

Managing multiple debts can be overwhelming. Take a loan to consolidate all the others. A single debt consolidation loan facilitates the payment of monthly payments. It allows you to quickly repay the capital because the interest rate applied is relatively low. A debt consolidation could give you the opportunity of a simple monthly payment to consolidate your debts.

This loan is used to repay any type of loan, so it is mandated to choose the perfect loan for debt consolidation. This will help you save interest on your loan. Choosing the right loan for you includes various factors such as interest rate, finance charges, prepayment charges and minimum credit scores. In this article, you will discover the best loan for debt consolidation.

Advantages of debt consolidation loan

• For many customers, debt consolidation loans can be a smart way to save money on interest, monthly payments that improve your credit card score. Here are the benefits of a debt consolidation loan.
• If you have many sources of debt at a high annual percentage, you can save on total interest if you get a loan with a lower rate for debt consolidation. Rates can be significantly lower than credit card interest rates, so you’ll save money on interest rates with the debt consolidation loan.
• Even if you choose a longer term for the loan, the debt consolidation loan will help you avoid missed payments. You’ll pay more in total, but your payments will be easier to manage, thanks to a debt consolidation loan that lowers your monthly payments but not your interest.
• Your credit card score can increase with a debt consolidation loan. With the debt consolidation loan, you will convert the detrimental score of revolving debt into practically benign debt in installments.

Choose the best loan for debt consolidation

Below is the list of top lenders in India offering debt consolidation loans at attractive interest rates.

SBI Xpress Credit personal loan

• Loan amount – up to Rs 20 lacs
• Interest rate – 11.90% to 17%
• Loan term – up to 6 years
• Minimum income – Rs 15000 per month
• Processing fee – 1% of the loan amount

Bajaj Finserv Debt Consolidation Loan

• Interest rate – 12.99% per annum
• Obtain loan amount up to Rs 25 lacs
• Minimum documentation for loan approval
• Get a loan within 24 hours in your account
• Loan term – 2 years to 5 years

Citibank personal loan

• Loan amount – up to Rs 30 lacs
• Get the loan amount in your account within 2 days
• Loan term – 2 years to 5 years
• Interest rate ranging from -10.50% to 17.99%
• Loan processing fee – 2% to 3% of the loan amount
• Get a loan with minimal documentation and easy processing

Axis Bank personal loan

• Get your loan amount with easy documentation and no extra cost
• Obtain a loan amount starting from Rs 50,000 up to a maximum of Rs 15 lacs
• Earn interest rates ranging from 16% per annum to 24% per annum
• Get a loan term ranging from 1 year to 5 years

ICICI Bank personal loan

• Get a loan up to Rs 20 lacs
• Get a loan term ranging from 1 year to 5 years
• Earn interest rates ranging from 11.25% to 22% per annum
• Existing bank customers can get a loan instantly
• Apply for a loan online with minimal documentation

  

HDFC Bank personal loan

• Obtain a loan amount up to Rs 40 lacs
• Earn interest rates ranging from 11.25% to 21.50% per annum
• Loan application fee – 2.50% of loan amount
• Get a loan term of up to 7 years
• Obtain loan amount with minimum income criteria of Rs 15000 pm
• Apply for a loan through an online and offline process.

Conclusion

Getting another loan to merge all the other loans means you have reduced your debt load. It only means that you have conveniently restructured the loan and the debt remains the same until you pay it off in full. A debt consolidation loan is important and beneficial for those who have multiple debts with bad credit. Therefore, a debt consolidation loan allows us to better manage our finances with the same payment amount each month.