Get One Emi For All Loans – Debt Consolidation Loan

By Author: Sumit Dahiya
Total Articles: 7
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With the lending sector offering loan products at the click of a button, borrowers find it easier to meet their financial requirements through loans. As an outcome, one tends to pile on the debts in the form of loans and credit cards without realizing the burden it will create. It ultimately results in mismanagement of the outgoing instalments causing a downfall in one's creditworthiness.

However, one can opt to consolidate multiple loans into a single one. Debt Consolidation Loan is an answer if you are stuck in the debt trap.
A personal loan taken for the long term and at a low cost helps considerably to minimize the burden of several EMIs into one. Herein, the borrower is liable to pay the equivalent amount as they were paying earlier for the loans, but in a single EMI. This process of single payment makes the management of EMI easier.

SINGLE EMI VS MULTIPLE EMIs

Multiple loans mean different EMIs with different lenders subject to different amounts and interest rates. Managing and tracking these multiple instalments every month can be highly cumbersome. In case of a miss, the borrower ...
... needs to pay off the charged penalties as well. In contrast, structuring the EMIs into one can be very convenient as the borrower has to take care of only a single instalment every month. A personal loan for debt consolidation ensures you pay off your debt with easy on-pocket instalments.

WHY OPT FOR A DEBT CONSOLIDATION LOAN?

A debt consolidation loan is a personal loan in which the borrower seeks to pay off their multiple ongoing debts with different lenders. It is done to simplify and strategize the payment schedule and process. The borrower is responsible to pay off the amount as it is but in a single monthly instalment instead of multiple ones.

Here is a jot down of a few reasons one should opt for a debt consolidation loan:

Single EMI: The money from the personal loan goes into paying off the ongoing loans, and the borrower is left with only one liability that he is required to pay as a single monthly instalment. It lowers the burden of tracking multiple EMIs and their repayment schedules.

Low rate of interest: Multiple loans means different interest rates which when added is quite huge. In contrast, a personal loan can be availed at a lower interest rate provided your creditworthiness is up to the mark. It helps in lowering your monthly instalments and saving on some money too.

Fixed loan tenure: Personal loans are offered for short durations ranging from 1 to 5 years. You can choose a loan tenure suitable to you and manage your instalment alongside other expenses.

Better credit score: Opting for a personal loan for debt consolidation helps to enhance your credit credentials by reducing the credit utilization ratio (the loan amount divided by the credit limit of the borrower).

LoansJagat offers a comparative online platform where the borrowers can compare different lenders in terms of interest rate, loan amount, loan tenure, and EMI. They help to avail of a personal loan in Delhi and other cities without much hassle.

As an informed borrower, it becomes imperative to carefully do the calculations before opting for the debt consolidation loan. There are risks involved like chances of damaging one's credit score, not receiving low-interest rates on the personal loan, losing the attached collateral, etc. Taking a loan to shut down other loans is viable only if you are disciplined in managing your finances by keeping a tab on your savings and expenses. Else even a single EMI can become hard to manage.

LoansJagat.com offers Personal Loans, Home Loans, Business Loans, Loans Against Property and low EMI Balance Transfer to other banks. Apply Online Now.