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No Collateral Required
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Competitive Interest rate
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Digital Documentation

ELIGIBILITY AND DOCUMENTATION FOR
Debt Consolidation Loan

The Eligibility Criteria for Debt Consolidation Loan:
  • Age: 23 years-58 years
  • Monthly Income: Minimum Rs.30,000
  • APR Range: 10.25% up to 21%
  • CIBIL Requirement: 700 or higher
  • Tenure: Between 12 month - 84 months.
Documents Required for Debt Consolidation Loan:
  • Aadhar & PAN Card
  • Current Address Proof
  • Last 3 Months Salary Slips
  • Latest Bank Statement of 6 Months
  • Latest Bank Statement of 6 Months
  • Repayment Schedules Of Existing Loans or Credit Card statements.

How To Apply For Debt Consolidation Loan?

Visit My Mudra website and then
go to the section of Debt Consolidation Loan
Apply for Debt Consolidation Loan by
filling basic details and then click on the continue button.
Fill the Financial Details including; residential ownership,salary type, credit score, PAN Number and other fields and then click on the continue button
Track the status of your loan application.
Get instant disbursal of your loan in your account at a lowest interest rate.

Understanding Debt Consolidation Loan

Consolidate means “to join together into one whole” or to bring together into a single or unified whole, to unite or to combine. Here in case of debt consolidation loan it means to unite two or more personal loan EMIs and Credit card bills into a single uniformed EMI at lower interest rates. Rather than repaying the multiple Personal loan EMIs and Credit Card Bills consolidate them all in one personal loan so that there would be less chances of missing these multiple EMIs. Debt Consolidation loan is the best way to handle all your pending debts smartly without any delay making the process easier.

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How Debt Consolidation Loan Works

Multiple card bills and personal loan EMIs which may be difficult to repay at a time can be easily managed by availing debt consolidation loan, lets us understand how does debt consolidation loan actually works with the help of this simple example:

For Instance: Sapna has multiple existing debts. In this case, how can she manage to cover these debts with the help of debt consolidation?

  1. 1. 2 Personal Loans ( Total Outstanding Debt = 10 Lakhs)
  2. 2. 5 Credit Card Bills ( Total Outstanding Debt = 10 Lakhs)

Here, Sapna can apply for a Debt Consolidation loan of 20 Lakhs ( 10 lakhs of personal loan + 10 lakhs of credit card bills), through this she can get all the debt consolidated in a single EMI at low interest rate. The debt consolidation loan tenure ranges between 1 to 7 years but at lower interest rates in comparison to all the debts separately.

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Features of Debt Consolidation Loan

Debt consolidation loan comes with multiple benefits for the borrowers who are struggling with several debts, for example any type of personal loan (medical, travel or marriage), Credit Card bills. Below mentioned are few of the key features of debt consolidation:

  • Lower Interest Rates: The primary benefit of debt consolidation loan is the potential to secure a lower interest rate on the consolidated debt. This will result in significant savings, as you will have to repay the debt less in interest charges.
  • Reduced Monthly Payments: The consolidated personal loan reduces the monthly payment burden by lowering the overall EMI every month and making it easier for you to repay the amount every month.
  • Improve Credit Score: When you manage your Debt consolidation loan and make the monthly payments on time, it may positively affect your credit score and we are already aware of the fact that lenders consider credit score while availing the personal loan.
  • Simplified Finances: Debt consolidation loan is all about merging several debts into single, this consolidation simplifies your finances by decreasing the number of EMIs you need to make.
  • Single Lender Managing to pay different debt to different lenders is a complicated task, as this may result in missing monthly payments and ultimately you need to pay late fees and spoil the credit score. And this spoiled credit score will reduce the chance of getting a personal loan in future. And a single lender will make it easy for you to communicate and make the payments.

FREQUENTLY ASKED QUESTIONS

Debt consolidation loan can only hurt your credit score if you are not disciplined with your debt repayments. Make sure to repay your debt repayment on time to maintain your credit score.
Yes, you can get a loan to consolidate your debt if you meet the eligibility criteria of the lender. Debt consolidation loan eligibility criteria typically include credit score, employment and income stability, repayment capability, and much more
Yes, debt consolidation loan can be a good idea if you're struggling with financial obligations and having a tough time repaying the EMIs.
Banks provide debt consolidation loans, you can apply for a debt consolidation loan directly via the lender's website or their mobile application.
Borrowers who are already paying more than one personal loan debt or credit card bills are eligible for debt consolidation. Additionally, a borrower must have a good credit history and be capable of repaying the debt consolidation loan EMI.
Sometimes there can be risks in consolidating loans, you may pay a higher interest rate or even the repayment amount can be higher and does not align with your repayment capability.
Debt consolidation loan interest rates vary from lender to lender and range from 10.25% to 21%.
Debt consolidation loan processing typically takes place 24 hours to 72 hours from the date the application is submitted.
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