Managing multiple debts simultaneously can be a challenging and stressful experience. Debt consolidation is a viable solution to streamline financial obligations by combining several debts into a single Loan at potentially lower interest rates over an extended repayment period. This simplifies repayment and reduces the overall interest rate you pay.
A Debt Consolidation Loan simplifies debt management by combining various high-interest debts, such as Personal Loans, Credit Card balances, and other liabilities, into a single monthly payment. The goal is to reduce the overall interest burden and make repayment more manageable.
How does it work?
To consolidate existing debts, a borrower applies for a Personal Loan from a lender. Later, they can use the approved funds to pay off their outstanding balances. As the existing debts are paid off with this new Loan, they eventually move on to a single monthly payment on the new Loan.
How do you consolidate your debt?
Debt consolidation is the process of combining several outstanding Loans into one. This is achieved by taking a Personal Loan for debt consolidation that has a lower interest rate and a flexible tenure which matches the sum required to pay off your outstanding Loans. The remaining outstanding Loans are paid off from the new Personal Loan taken.
By applying for a Personal Loan, you can get a Loan at a significantly lower interest rate. SMFG India Credit offers Personal Loans for debt consolidation, with an interest rate starting at 13% per annum. EMI depends on various factors, including the applicant’s individual profile and eligibility, age, location, employment type, work experience, net income, and existing monthly obligations.
A Debt Consolidation Loan combines multiple EMI payments into a single payment with a single due date, making it easier to manage. This reduces the stress of remembering several dates and avoiding penalties, which can be overwhelming. A Personal Loan for Debt Consolidation simplifies the repayment process with a single, fixed EMI.
How to calculate your monthly payments?
Managing your finances becomes easier when you only keep track of one due date and payment. Personal Loans typically offer fixed monthly payments, providing stability and helping you budget more effectively. Many lenders provide Personal Loan EMI calculators to help you estimate your monthly payments and plan your finances accordingly. It allows you to estimate the monthly payment required to repay the Loan over a specified tenure.
This tool is essential, as monthly repayment capacity is one of the most important factors to consider when applying for a Personal Loan online. Enter your Loan amount, interest rate, and tenure to get the principal and interest portions of your payment.
Conclusion
Using an EMI calculator for a Personal Loan helps review your current financial commitments and revise them to make the Loan more affordable. It saves you the time required for performing complex manual calculations and removes the room for human error. Moreover, you can adjust the inputs and arrive at a suitable option.
