A Loan To Repay A Loan? PaySense is the best guide to show you how to do it right
It’s a financial dilemma that many people struggle with: keeping track of multiple EMI appointments each month. There is an easy solution: debt consolidation with a personal loan.
What is Debt Consolidation?
As the term suggests, it is an arrangement that consolidates existing debt or brings it into a borrowing. Debt consolidation is done by large corporations but is also recommended for individuals who have multiple loans on their behalf. This is done through borrowing and Instant loan online from a loan app or traditional lender to close the other loans. Debt consolidation is a good practice because:
- It simplifies credit management. Say you have a home loan, a car loan, and a credit card loan in your name. Everyone has different EMIs that are payable on different dates of the month. If you group the loan under a personal loan, all you have to do is pay one EMI.
- Financial management is getting much leaner. The practice of debt consolidation frees up your income, after deducting the EMI personal loan per month, for other expenses
- Instant online personal loans have a shorter term than secured loans. So debt consolidation with a personal loan will make you debt free much faster.
- Your credit score improves when you take out a personal loan to repay and consolidate multiple loans.
- Debt consolidation performed properly makes it easier to get bigger secured loans in the future.
Why Get a Personal Loan to Pay Back Debt?
Usually, taking out one loan to repay another loan is poor financial planning. This will keep you ingrained in debt. But a personal loan will get you debt free faster with its shorter term and relatively lower amount. It can be borrowed for a maximum of 48 months for a maximum amount of Rs 5 lakh. You also have the option of canceling the loan before it expires.
Instant personal loans are also easier to get – when they are from a leading company. be borrowed Credit app In India, it’s just a few steps, minimal documentation, and hassle-free application process to get the money cashed out in your account soon. Leading loan apps in India work with the country’s leading NBFCs to do credit checks and loan out loan amounts.
How to get a personal loan
First, install the credit app on your smartphone. Make sure you choose a leading, reliable credit app that is bug free, has good user ratings, and has transparent application and payment processes.
- Set up the app and study the loan product in detail. Carefully study the eligibility criteria, interest rates, repayment terms, fee schedule, penalties, required documents, etc.
- Apply for the loan when you need the loan after calculating how much you need. If it exceeds your credit score with the app, please refrain from applying or contact the app to learn how you can upgrade your credit score
- Study the app’s list of required documents. Make copies of the required documents and certify them. The set will be picked up from your home and handed over to the branch in your name
- The app checks your personal and financial documents. If everything is correct, the app will notify you of the loan approval. Note that the app may also notify you of a rejection, but it only happens in extreme cases (you have no source of income, you recently quit your job, your document information does not match, etc.) also for newbies in the credit universe
- Beginning the next month, start repaying the loan in a series of installments from your salary or business income
(ThePrint ValueAd Initiative content is a paid, sponsored article. ThePrint journalists are not involved in reporting or writing.)
Why news media is in crisis and how to fix it
India needs free, fair, un-hyphenated and questioning journalism all the more as it faces multiple crises.
But the news media is in its own crisis. There were brutal layoffs and wage cuts. The best of journalism is shrinking and giving way to a crude prime-time spectacle.
ThePrint is made up of the best young reporters, columnists and editors. To maintain journalism of this quality, you need smart, thinking people like you to pay for it. Whether you live in India or abroad, you can do it here.
Support our journalism