What is Debt Consolidation? An Easy Financial Decode

Debt Consolidation enables customers to consolidate all the debt obligations into a new loan and repay the loan comfortably at a lower interest structure, without causing any financial burden. Read further to know more.

Every individual opts for a loan to fulfil their aspirations and dreams, during this lifetime. Whether you have taken a Home Loan, Car Loan, Personal Loan, Business Loan or are using a Credit Card, such funding options are available at attractive interest rates; however, the repayment part can be a huge financial burden. If you are one of those who have multiple loan liabilities and are struggling to keep track of the same, then Debt Consolidation may be the right option for you. A facility that helps you streamline multiple financial dues and other existing loans. Let’s get to know more about it in detail.

What is debt consolidation?

ICICI Bank offers Personal Loans for Debt Consolidation for easier management of debts, such as multiple loans and other borrowings. One of the benefits is that you get to repay the loan at a lesser interest rate, which helps you save money on EMIs, therefore, helping you manage your finances better. As a borrower, you are required to make a single payment instead of making multiple payments, to other creditors. Below are some of the benefits of Debt Consolidation.

Let’s understand how Debt Consolidation works:

When consolidating a debt, a borrower will apply for a personal loan with the Bank Once the loan gets approved, the borrower will pay off his or her outstanding balances. When the borrower’s pre-existing debts are paid off with the new loan funds, he/she will make a single payment on the new loan, each month.

Features and Benefits of Personal Loans for Debt Consolidation

A few key features and benefits of Personal Loans, which can make them an ideal option to consolidate your debts, are as follows:

• Affordable loan option: A Personal Loan helps you pay off your dues in an affordable manner. You don’t need to go through the hassle of managing/repaying multiple debts. You can easily apply for a Personal Loan online

• No collateral or security required: You don’t require any collateral/guarantor to avail a Personal Loan

• Quick processing & approval: Once your application is verified along with the supporting documents, the approval process doesn’t take much time. You get the loan in a timely manner

• Instant disbursal: The loan amount that you apply for will immediately be disbursed into your Savings Bank Account, as soon as your application is approved by the lender

• Repayment flexibility: Just like a regular Personal Loan, you can choose any repayment tenure, ranging up to 6 years. You can opt for a loan amount that is sufficient to pay off the debts, and also avail any additional amount that you may need based on your financial repayment capability.

ICICI Bank’s Personal Loan for Debt Consolidation allows prospective borrowers to apply for a loan amount of up to Rs 25 lakh. Select customers can avail pre-approved offers and a flexible repayment plan, from the lender.