Debt Consolidation Loans India

Debt Consolidation Loans in India

Are you mess with several high interest paying loans such as Credit Cards, Personal Loans & Car Loans? Than Debt Consolidation Loan is the only solution for you.

Why to Take Debt Consolidation Loan?

Debt Consolidation Loan means converting your multiple high interest paying loans into a single low interest paying loan. This helps in reducing your monthly debt payment as well as interest rate.

Types of Debt Consolidation Loans -

There are basically 2 types of debt consolidation loans.

• Secured debt consolidation loans use collateral to back the loan in case of a default. These types of loans usually provide the lowest interest rates since the lender's risk is offset by the collateral.

• Unsecured debt consolidation loans address the debt burden perfectly when you don't have a home or property against which you can acquire loan, or you don't prefer to offer your home as security. Security is not required in these loans. However, the interest rates are higher than in the case of secured loan plans. Nevertheless, there will be an overall reduction in your monthly outgoing.

Advantages of Debt Consolidation Loan -

The main advantage of Debt Consolidation Loan is that, your several multiple loans will be converted into a single low interest paying loan. So your over all Cashflow will improve after taking this loan.

How Can I Get Debt Consolidation Loan in India? -

At present in India, there is not any separate product like Debt consolidation loan. However, you can any time contact and negotiate with your lender/bank/financial institute for the debt consolidation loan. You will need a Debt Counselor also known as Credit Counselor to negotiate the terms with the lender.

Advantages of a Debt Counselor -

Before selecting a bank, a borrower should consult a credit counselor.

The advantage of having a good credit counselor is that they could mediate and negotiate between debtor and creditors. They would do a comparative study of the interest rates offered by various banks and also the terms and conditions of unsecured debt consolidation and choose the best one.

The credit counselor also ensures that you have ample time in hand to stabilise your finances and also to pay your money in small installments.

Which are the Good Credit Counselors in India?

ICICI Bank's Disha and Bank of India's Abhay are two such initiatives where credit counselors guide you through your financial problems and try to find a solution. These institutions, though, do not help you arrange a debt consolidation loan.