Personal Loan for Debt Consolidation Apply Now Home Personal Loan Personal Loan for Debt ConsolidationIn today’s time, availing a personal loan has become a matter of a few taps on your device. But this quick and instant access to credit has also made it easy to fall into a debt trap. In situations like these, debt consolidation can be your lifeline.In debt consolidation, you take a loan to pay off all your ongoing personal loans and debts. When you combine your high interest loans into one, you may be able to save money by paying lower interest rate or processing fee.If you’re someone who has taken on a lot of debt and is finding it challenging to navigate your way out of it, a debt consolidation loan can help you lighten your financial burden. Personal Loan for Debt ConsolidationA debt consolidation loan is a loan you take to pay off your other debt. When you combine your high-interest loans into one and take a personal loan to repay it, it makes your repayments more manageable. Finding the fastest debt consolidation loan in India? Look no further because with Zype you can apply for a loan up to ₹5 lakhs in 5 minutes! Complete your application and get approval in less than 60 seconds.But before you take a personal loan for debt consolidation it’s important to understand how it works along with its pros and cons. Keep reading to find that out.How Does A Debt Consolidation Loan Work?When you choose to free yourself from all your financial obligations through debt consolidation, you can combine all your debts and personal loans.You can take a personal loan for debt consolidation to pay this EMI, protecting your credit score from any further damage.Debt consolidation doesn’t reduce your number of debts, it just makes it easier for you to repay your loan.Usually, you’re offered lower interest rates when consolidating your loans and have to make one fixed payment towards your debt, every month. Importance of Personal Loan for Debt ConsolidationWhile consolidating your multiple debts can make paying loans easy, choosing the right debt consolidation loan can make that process easier. More than that, it makes your loans more affordable and even protects your credit score in the long run.There are various lenders available in the market who offer consolidation loans with the best terms of borrowing. Moreover, the emergence of loan apps has taken the accessibility to credit to the next level by offering instant loans online.Zype is such a loan app that offers personal loans up to ₹5 lakhs starting at just 1.5% monthly interest which can be used in debt consolidation. But that’s not all! Find out below how Zype can offer you a debt consolidation loan while serving the best loan experience. Features and Benefits of Personal Loans for Debt ConsolidationWith an application process that takes less than 5 minutes to complete, a super-fast loan is not all that you get from Zype. Here are some ways in which Zype can give you the best loan experienceNo Documentation or PaperworkNot only can you complete your application in less than 5 minutes on Zype, but you can also complete it without the hassle of uploading any documents. Goodbye, paperwork! Just enter some basic information like your email address, PAN and employment details and apply for a loan in no time. Instant ApprovalWith Zype, you can get the fastest debt consolidation loan in India. Because after you have completed your application, you can get approved for a loan in 60 seconds. Quick DisbursalGet the money you need directly into your registered bank account within 24 hours post-approval. Collateral-Free LoansNo need to worry about your assets because Zype personal loans are unsecured loans. This means you don’t have to give any of your assets as security to get access to your loan. Flexible Repayment TenureWith EMI options of 3, 6, 9 or 12 EMIs, you can choose a repayment tenure that fits your budget. Document Required for Personal Loan for Debt ConsolidationWhile it only takes 5 minutes to complete your loan application process on Zype, keeping all the required documents and information handy can make the process quicker. And the best part about applying for a loan on Zype is that you don’t have to upload any documents. This is all you need to complete your application: Mandatory DocumentsYour PAN and Aadhaar number while filling out your application and completing KYC. (Physical copy not required) Real-Time Selfie VerificationWhen completing your KYC, you have to do a real-time selfie verification to activate your credit limit. Proof of Income (optional)You need to provide your bank statement for the previous 4 months only when you want to apply for a higher credit limit. Personal Loan for Debt Consolidation Interest RateIt’s important to understand all the charges associated with taking a personal loan.Given below are all the charges you may face when taking a loan from Zype so that you get complete transparency about the terms of borrowing. Fees and Charges Amount ChargeableInterest RateStarting at as low as 1.5% (monthly)Loan Processing ChargesProcessing fees from 2% to 6% on every loanPenalty on Overdue EMIsPenal interest & late fees will be charged to your total outstanding loan on daily basisEligibility Criteria for Personal Loan for Debt ConsolidationYou need to meet your lender’s eligibility criteria to get approved for a personal loan. And understanding the criteria even before you start applying for a loan can help you avoid too many applications. Here are Zype’s eligibility criteria for a personal loan: Age18 years or above Citizen of IndiaValid PAN & Aadhaar card Work experienceSalaried individual Monthly SalaryMonthly income of at least ₹15,000Things to Consider While Taking a Debt Consolidation LoanIt’s important to weigh out the pros and cons of taking a consolidation loan before you even begin your application process. Depending on your financial requirements and conditions, here are some important things to consider:Carefully evaluate your financial situation before you decide to take a personal loan for debt consolidation. It’s important to consider your budget and repayment capacity so that you’re able to pay your EMIs on time.Calculate your total outstanding amount after consolidation so you have a clear understanding of the loan amount you require.Make sure you check your credit score before you apply for a debt consolidation loan. A higher credit score can increase your chances of getting a high-value loan at lower interest rates. Different lenders have different loan offers based on your profile. Make sure you compare offers across various lenders before taking a debt consolidation loan so that you get the best terms of borrowing. How to apply for a personal loan for debt consolidation on Zype?On Zype, applying for a debt consolidation loan is a matter of a few taps. You can complete your application process in these 6 simple steps:1) Download the Zype App from PlayStore/AppStore and create your account by completing your Mobile OTP.2) Complete your application process in less than 5 minutes by entering your basic information like name, email address, PAN, employment details, etc.3) Based on your application, you can get approved for a personal loan in less than 60 seconds.4) After you’re approved, you have to complete a real-time selfie verification along with Aadhaar-linked mobile OTP to activate your approved limit.5) Choose the amount you want to transfer along with the repayment tenure that fits your budget.6) That’s it! You will receive the loan directly into your registered bank account within 24 hours.Frequently Asked QuestionsWhat Is A Debt Consolidation Loan?In debt consolidation, you take a loan to pay off all your ongoing personal loans and debts. When you combine your high-interest loans into one, you may be able to save money by paying lower interest rates or processing fees. The personal loan that you take to repay this loan is known as a debt consolidation loan.Who Is Eligible For A Debt Consolidation Loan In India?Different lenders have different eligibility criteria for a debt consolidation loan in India. But these are the common debt consolidation loan eligibility criteria:– The borrower must be 18 years or above.– The borrower must have a valid PAN and Aadhaar card.– The borrower must have a stable source of income.– The borrower must have a good credit score. What Is Debt Consolidation?In debt consolidation, you combine all your ongoing personal loans and debts into one larger payment, typically at a lower interest rate or processing fee, and take a new personal loan to pay it off.Does Debt Consolidation Affect Your Cibil Score?Debt consolidation can temporarily reduce your credit score. But if you follow all the good borrowing practices and repay your loan on time, it can help you boost yourHow Much Does It Cost To Consolidate Debt?On Zype, these are all the charges associated with taking a consolidation loan of up to ₹5 lakhs.Fees and ChargesAmount ChargeableInterest RateStarting at as low as 1.5% (monthly)Loan Processing ChargesProcessing fees from 2% to 6% on every loanPenalty on Overdue EMIsPenal interest & late fees will be charged to your total outstanding loan on a daily basisWhat Do I Need To Apply For A Debt Consolidation Loan?On Zype, you only need your PAN and Aadhaar number to complete your loan application.Will I Be Able To Pay Off My Debts Faster With A Debt Consolidation Loan?Yes, taking a debt consolidation loan to pay off all your debts will help you free yourself from all financial obligations faster. Do I Need Collateral To Apply For A Personal Loan For Debt Consolidation?All Zype loans are collateral-free loans. This means that you don’t have to provide any asset as security to get access to money.