Debt consolidation is the process of combining multiple debts into a single loan, making repayment easier and often more affordable. In India, debt consolidation loans can help individuals manage their financial obligations by merging various debts into one monthly payment. A personal loan for debt consolidation typically offers lower interest rates, allowing borrowers to save on overall interest costs. Instant debt consolidation loans are available for those who need quick access to funds. The debt consolidation loan definition refers to this financial strategy aimed at simplifying debt management and improving financial stability, ultimately helping borrowers regain control over their finances.
Features and benefits
-
Manage your existing debt with a high-value collateral-free loan.
Unsecured credit up to Rs. 55 lakh
-
Repay your debt at an attractive personal loan interest rate.
Competitive interest rates
-
Long repayment window
Divide your debt payments over up to 96 months per your budget.
-
Swift approval and disbursal
Get quick approval in 5 minutes* and the funds within 24 hours* of verification.
-
45%* lower EMIs
Pay interest-only EMIs for the initial part of the tenor with the Flexi loan facility.
-
No hidden charges
Enjoy 100% transparency with the personal loan processing fees and charges.
-
Obtain a personal loan for debt consolidation with a few basic KYC and income documents.
Simple documentation
-
Digital loan account
Pay your EMIs, view your repayment schedule, and download statements via Customer portal- Bajaj Finserv My Account.
-
Pre-approved loan offers
Avail of pre-approved pre-approved offers on your personal loan for quicker access to credit.
Consolidate all your existing loans into one and handle a single EMI each month with a personal loan for debt consolidation from Bajaj Finserv. Get financing of up to Rs. 55 lakh without collateral and repay your new debt at an attractive rate of interest. Pick a repayment term of up to 96 months to bring your monthly debt outgo within budget.
Generally, debt consolidation eligibility criteria are simple. Our eligibility criteria are simple too, and you can get instant approval within 5 minutes* of application. Submit basic KYC and income documents with your application and, post-verification, get money in the bank within 24 hours*. With swift financing like online debt consolidation loans, you can consolidate high-interest loans and credit cards and repay your debt more affordably without delay. Our existing customers can avail of pre-approved offers for a convenient 1-step application.
Use the Personal Loan EMI Calculator to plan your new instalments. View your repayment schedule, pay EMIs, part-prepay the loan, and download statements via My Account, our customer portal.
If you require up to 45% lower EMIs, consider the Flexi loan facility and pay interest-only EMIs for the initial part of the repayment term. Borrow funds from your approved limit and prepay your loan for free with the Flexi personal loan.
Eligibility criteria
-
Nationality
Indian
-
Age
21 years to 80 years*
-
CIBIL score
Check your CIBIL Score for FREECredit score should be 685 or higher
Use the Personal Loan Eligibility Calculator to estimate how much you can borrow. Meet the simple eligibility criteria and submit the necessary documents required for a personal loan to get the loan quickly.
Documents required for personal loan
Applying for a personal loan from Bajaj Finance requires basic paperwork. Here is a list of documents required for a personal loan:
- KYC documents: Aadhaar/ passport/ voter’s ID/ driving license/ Letter of National Population Register/ NREGA job card
- PAN card
- Employee ID card
- Salary slips of the last 3 months
- Bank account statements of the previous 3 months
- Piped gas bill
- Pension order
- Letter of Allotment of Accommodation Issued by Employer
- Property / Municipal tax receipt
- Utility bill
- Real-time image / photograph
Interest rates and charges for a debt consolidation loan
We offer competitive interest rates on personal loans and are 100% transparent with zero hidden charges. View the fees and charges to know how consolidation of your debt with our personal loan can be an affordable choice.
How to consolidate your debt
Debt consolidation is an effective strategy to manage multiple debts by combining them into a single loan with lower interest rates or simplified repayment terms. Follow these steps to consolidate your debt:
- Evaluate your debts
List all your debts, including outstanding balances, interest rates, and monthly payments. This will help you understand the total amount you need to consolidate. - Check your credit score
A good credit score improves your chances of getting favourable terms on a debt consolidation loan. Use online tools to review your credit report. - Explore consolidation options
Look at different types of loan refinancing and restructuring options. - Use an interest rate calculator
Compare loan options using an interest rate calculator to identify the most cost-effective solution. - Create a repayment plan
Stick to a disciplined repayment schedule to avoid falling into new debt.
Debt consolidation simplifies your finances and reduces financial stress when managed effectively.
How to apply for a personal loan for debt consolidation?
Apply online for a personal loan for debt consolidation by following these four easy steps:
- 1 Enter your personal, financial, and employment details into the online application form
- 2 Things to consider when taking a personal loan for debt consolidation
- 3 Select the loan amount and tenor to receive instant approval
- 4 Submit basic documents to a Bajaj Finserv representative who will contact you
- 5 Receive money in the bank within 24 hours* of document verification
*Conditions apply
Frequently asked questions
A debt consolidation loan is a financial tool that combines multiple high-interest debts, such as credit card balances or personal loans, into a single, lower-interest loan. By merging debts, borrowers simplify payments and often reduce overall interest costs, making it easier to manage finances and work towards becoming debt-free.
Any borrower who meets the eligibility criteria set by the lender is eligible for a loan. eligibility for a debt consolidation loan typically depends on factors such as credit score, income stability, existing debts, and repayment capability.
Debt consolidation itself does not directly impact your CIBIL Score. However, how you manage the consolidated loan afterwards does affect your credit score. Timely payments and responsible credit use can improve your score, while missing payments or accumulating more debt can negatively impact it, regardless of the consolidation.
The cost of debt consolidation varies based on the method chosen. If you opt for a loan consolidation, fees and interest rates apply, depending on your creditworthiness and the lender’s terms.
Yes, personal loans can be used for debt consolidation, combining multiple debts into a single monthly payment with potentially lower interest rates.
Yes, you can obtain a debt consolidation loan to clear multiple debts by combining them into a single loan with potentially lower interest rates and more manageable monthly payments.
To consolidate debts into one payment, apply for an instant loan, use the funds to pay off existing debts, and then repay the loan over time.
The fastest way to consolidate debt is to apply for a personal loan with favourable terms. You can also consider balance transfer credit cards for quicker, low-interest solutions if eligible.
Consolidating debt generally involves combining debts into a single loan, which can lower monthly payments. Settling debt often reduces the total owed but may severely impact your credit score.
Debt consolidation can be effective if it lowers your interest rates and simplifies payments. However, it's crucial to address underlying spending habits to avoid accumulating debt again.
Debt consolidation can be a valid reason to get a loan if it leads to lower interest rates and easier management of payments. Evaluate your financial situation carefully before proceeding.
To get a debt consolidation loan, check your credit score, research lenders, and compare interest rates. Gather the necessary documentation, apply, and ensure you understand the loan terms before committing.
