What is a Loan Consolidation?
Loan consolidation is the process of combining multiple loans into one loan with a single interest rate, monthly payment, and due date.
Benefits of Loan Consolidation:
- Simplified finances
- Lower monthly payments
- Reduced interest rates
- Single due date
- Improved credit score
- Reduced debt burden
- Flexibility in repayment
Types of Loan Consolidation:
- Debt Consolidation Loan
- Balance Transfer Loan
- Personal Loan Consolidation
- Student Loan Consolidation
- Credit Card Consolidation
- Mortgage Consolidation
- Business Loan Consolidation
Eligibility Criteria:
- Multiple loans
- Good credit score (600-750)
- Stable income
- Age: 21-60 years
- Residence: Indian citizen
Documents Required:
- ID proof (Aadhaar/PAN)
- Address proof (passport/driving license)
- Income proof (salary slips/bank statements)
- Loan statements
- Credit report
Loan Consolidation Process:
- Check eligibility
- Choose consolidation option
- Apply for consolidation loan
- Pay off existing loans
- Repay consolidated loan
Top Loan Consolidation Providers:
- HDFC Bank
- SBI
- ICICI Bank
- Axis Bank
- Bajaj Finserv
- Tata Capital
- Lendingkart
- Capital Float
Things to Consider:
- Interest rate
- Fees (processing, origination)
- Repayment tenure
- Credit score impact
- Loan amount
- Debt-to-income ratio