Consolidate Your Exisitng Loans & Credit Cards Into Single EMI

First Asked Questions

Q. What is loan consolidation?

A. Loan consolidation refers to the process of combining multiple debts, such as personal loans and credit cards, into a single loan. This is typically done to simplify payments and potentially reduce interest rates.

Q. How does loan consolidation work for personal loans and credit cards?

A. In consolidation, you take out a new loan to pay off your existing debts, including personal loans and credit card balances. Instead of managing multiple payments and due dates, you make a single monthly payment toward the new loan.

Q. How many days will be required for disbursement of loan?

A. From the day of submitting your complete documents to our executive to loan disbursement by bank, it will take around 3 to 7 days.

Q. What are the benefits of consolidating personal loans and credit card debts?

1. Simplified payments: You only need to manage one loan, making it easier to stay on top of payments.

2. Lower interest rates: Consolidation may help reduce your overall interest costs, especially if you're consolidating high-interest credit card debt.

3. Improved cash flow: By extending the repayment term, you could lower your monthly payments, improving your cash flow.

4. Boost to credit score: Timely payments on your consolidated loan can positively impact your credit score.

Q. Will consolidating my loans affect my credit score?

A. Initially, applying for a consolidation loan might cause a small dip in your credit score due to the credit inquiry. However, over time, if you make timely payments, consolidation can improve your credit score by reducing credit card utilization and improving your payment history.

Q. Who should consider consolidating their loans?

A. Loan consolidation is ideal for salaried individuals who:

 Have multiple loans and credit card balances.
 Struggle with managing different payment schedules.
 Are paying high-interest rates on credit cards or personal loans.
 Want to simplify their finances by having a single payment.

Q. What is the minimum income criteria to get debt consolidation?

A. Minimum net take home salary is 30k required for debt consolidation.

Q. Is loan consolidation the same as debt settlement?

A. No. Loan consolidation combines your debts into one loan with a new interest rate and payment schedule. Debt settlement involves negotiating with creditors to pay a reduced lump sum to clear your debt, which may negatively affect your credit score. We do not advise to settlement of loans & credit cards.

Q. What types of debts can be consolidated?

A. Common debts that can be consolidated include: Personal loans, Credit card balances, Car loan.

Q. How do I qualify for loan consolidation?

A. To qualify for a loan consolidation, lenders typically assess your: Credit score, Income level, Debt-to-income (DTI) ratio, Employment history.

Q. Can I still use my credit cards after consolidating my debts?

A. Yes, you can still use your credit cards, but it's advised to avoid accumulating new debt. The goal of consolidation is to simplify your financial obligations, so adding new credit card debt could defeat the purpose.

Q. What are the risks of loan consolidation?

A. Some risks to consider include: Longer repayment terms: While this lowers monthly payments, you may end up paying more in interest over time. Potential for more debt: If you continue to use credit cards after consolidation without addressing spending habits, you could end up deeper in debt. Fees: Some consolidation loans come with origination fees, late fees, or prepayment penalties.

Q. What are the documents required in order to apply for a Debt Consolidation Loan?

Documentation
 Passport Size Photo
 Pan Card
 Aadhaar Card
 Last 3 Months Salary Slip
 Last 4 Months Bank-Statement to Till Date (Updated)
 Form-16
 Present Address Proof
 Permanent Address Proof (If Rented)
 All Running Loans Statement/Schedules
 Credit Card Statement Last generated