Debt consolidation with a small personal loan can make repayments simpler and quicker. Learn more here:
The word “debt” itself is enough to make anyone feel nervous, but not anymore. During the global pandemic, In India, the household debt percentage rose from 32.5% to 37.3% in the financial year 2021. Many of us might feel drowned in unsecured debts, which are taking a toll on our minds. Small personal loans make consolidating even your unsecured debts quick and easy. These small personal loans allow anyone to get another loan to repay the outstanding debts by not adding additional costs to the existing ones.
What is an unsecured personal loan?
Any unsecured loan means that it does not require collateral. This lending has many benefits, including lower interest rates and less stringent requirements for approval. If you want relief, consider applying for personal loans online. Very few steps, like filling in some information on their website or giving them a call, are enough! You may not need documents other than proof that you have income regularly – such as bank statements showing deposits into savings accounts every month. Since these loans are without collateral, they are more flexible, and anyone can apply.
Getting an unsecured personal loan has never been this easy since Clix Capital offers up to INR 10 Lakhs as a personal loan with an easy online application procedure. Apply here and cover all your personal expenses like education, wedding, travel, and home!
What is Consolidation of Debt and Why You Should Consider Doing It?
Consolidating debts means borrowing another loan from a lender to repay the outstanding loans. It is mainly required for an unsecured personal loan since there is no collateral to cover the debt. Many organizations in India offer this facility to help people with unsecured personal loans. There are several benefits of consolidating unsecured debts with a small personal loan online:
- Getting small personal loans to consolidate existing debts can encompass different debts into one, reducing the hassle of keeping track of several bills.
- Affordable monthly EMIs are possible. Additionally, a debtor will have to pay a single EMI for all the different types of debts.
- Consolidating debt can reduce the overall interest rates by computing them into one.
- It is a stress-free option since there will be no more hassle of paying multiple EMIs.
- It might help a person repay the debt faster since it reduces the interest rate and makes it less complicated.
- Another significant benefit is that it can help improve a person’s CIBIL Score. Since it allows a person to pay different EMIs simultaneously, it reduces the chances of missing a bill.
Several NBFCs offer flexible unsecured personal loans to help you manage your bills without hassle. Unsecured small personal loans help to comprise your EMIs and credit card bills into one single EMI every month to make you feel less burdened. NBFCs offer such loans to everyone since they require minimum documentation.
With a personal loan, it is possible to comprise all outstanding loans into one and divide them into affordable monthly EMIs. Moreover, the best benefit of this small amount of personal loan is it reduces the overall interest rate on the existing outstanding.
How To Consolidate Debts with A Small Personal Loan?
It is possible to consolidate unsecured debts with small personal loans online. However, it may be more difficult for you to qualify for this type of loan due to not having collateral as security against defaulting on your payments. Factors like your credit score, annual income, stability of income, type of job, and so on are likely to be considered to assess the risks regarding repayment before approving an unsecured personal loan. Bank statements demonstrating how much money you can put toward monthly loan repayment can also be required.
