Debt consolidation

Debt consolidation

Debt consolidation is combining of several unsecured debts into a single, new loan that is more favorable. Debt consolidation involves taking out a new loan to pay off a number of other debts like Credit Card dues, unsecured personal loan, private finance from individuals, unsecured business loan, car refinance and other high interest loan. The new loan may result in a lower interest rate, lower monthly payment and higher repayment tenure or all. You may be able to take out a debt consolidation by opting for home equity loan or other loans as suggested by CFPL Advisor.

There are several steps in the Debt consolidation process. Here are the steps in brief:

  • Application form & Document submission
  • Cibil report check
  • Residence verfication
  • Office
  • Eligibility calculation
  • Technical & Valuation
  • Personal Discussion
  • Credit decision
  • Offer Letter
  • Submission of Property documents & legal check
  • Registration of property documents
  • Signing of agreements and submitting post-dated cheques
  • Disbursement
  • Much favorable loan.
  • Credit counselors can cut your monthly payments in half
  • Offer lower interest rates than other
  • Debt settlement is the cheapest way to go
  • You need a formal program to get out of debt
  • Debt consolidation always saves you money
  • Debt consolidation helps your credit rating
  • It will avoid Bankruptcy

SELF EMPLOYED INDIVIDUAL

  • An Indian Resident
  • You should be in business for a minimum of 3 years.
  • You should be self employed Minimum 24 to maximum 65 years of age.
  • Your current place of residence should be occupied for a minimum of 3 years in the city.
  • You should have residence or office owned

SELF EMPLOYED PROFESSIONAL

  • An Indian Resident
  • You should be in business for a minimum of 3 years.
  • You should be self employed Minimum 24 to maximum 65 years of age.
  • Your current place of residence should be occupied for a minimum of 3 years in the city.
  • You should have residence or office owned

Salaried

  • You should be in business for a minimum of 3 years.
  • You should be employed Minimum 21 to maximum 65 years of age.
  • Your current place of residence should be occupied for a minimum of 3 years in the city.
  • You should have residence or office owned

To qualify for a Debt Consolidation, most of the lending institutions in India require you to be:

Documents Salaried Self Employed Properitorship Firm Self Employed Partnership Firm Self Employed Pvt Ltd / Ltd
Application Form With Photograph Duly Signed Debt consolidation Debt consolidation Debt consolidation Debt consolidation
Clear Pancard Copy, (Applicant & Co-Applicant) Debt consolidation Debt consolidation Debt consolidation Debt consolidation
Latest Residence proof (Applicant & Co-Applicant) Debt consolidation Debt consolidation Debt consolidation Debt consolidation
Latest Office Proof (Applicant & Co-Applicant) Debt consolidation Debt consolidation Debt consolidation Debt consolidation
Last 3 Months Salary-Slips Debt consolidation Debt consolidation Debt consolidation Debt consolidation
Last 12 Months Bank Statements Debt consolidation Debt consolidation Debt consolidation Debt consolidation
Processing Fee Cheque Debt consolidation Debt consolidation Debt consolidation Debt consolidation
Form 16 / Income Tax Returns Of Last 3 Yrs Debt consolidation Debt consolidation Debt consolidation Debt consolidation
All Loan Sanction Letter If Any Debt consolidation Debt consolidation Debt consolidation Debt consolidation
Business Profile Debt consolidation Debt consolidation Debt consolidation Debt consolidation
Proof Of Business Existence (Gumasta License, Sales Tax Certificate, Form 26AS) Debt consolidation Debt consolidation Debt consolidation Debt consolidation
Last 3 Years Income Tax Returns With Computation Of Income Debt consolidation Debt consolidation Debt consolidation Debt consolidation
Last 3 Years CA Certified / Audited Balance Sheet And Profit & Loss Account Debt consolidation Debt consolidation Debt consolidation Debt consolidation
MOA /AOA Debt consolidation Debt consolidation Debt consolidation Debt consolidation
Partnership Deed Debt consolidation Debt consolidation Debt consolidation Debt consolidation
Company Pancard Clear Copy Debt consolidation Debt consolidation Debt consolidation Debt consolidation
Shareholding Pattern On Letterhead Debt consolidation Debt consolidation Debt consolidation Debt consolidation
Sundry Debtor & Creditor List Last 1year Debt consolidation Debt consolidation Debt consolidation Debt consolidation
Property Papers (Chain Of Agreement & Share Certificate) Debt consolidation Debt consolidation Debt consolidation Debt consolidation

Equated Monthly Installment - EMI for short - is the amount payable every month to the bank or any other financial institution until the loan amount is fully paid off. It consists of the interest on loan as well as part of the principal amount to be repaid. The sum of principal amount and interest is divided by the tenure, i.e., number of months, in which the loan has to be repaid. This amount has to be paid monthly. The interest component of the EMI would be larger during the initial months and gradually reduce with each payment. The exact percentage allocated towards payment of the principal depends on the interest rate. Even though your monthly EMI payment won't change, the proportion of principal and interest components will change with time. With each successive payment, you'll pay more towards the principal and less in interest.

In EMI calculator you will be able to analysis the total output of interest you will be paying. In this mechanism you will be able to know the total EMI paid and the interest payable. In EMI Calculator you can also come to know how much interest you will be paying throughout the tenure. To work effectively on EMI Calculator you must be aware of the Loan Amount and the rate of interest. In EMI calculator you will come to know the total interest paid at the end of the Loan tenure.

If you are not satisfied with the calculator output please call us for a personalized solution for your requirement.

Important information

All applications for credit are subject to Banks normal credit approval criteria. Terms and conditions are available on application of every bank in which loan will be applied.

This is an estimate and it is provided for illustrative purposes only and is based on the accuracy of information provided. It does not constitute a quote. To apply for a loan you must complete an application.

The repayment amount and total interest payable excludes Processing fees and Mortgage Insurance / Life Insurance.

If a Variable Rate Loan is selected, the interest rate will be subject to market change throughout the term of the Loan.

Results are based on amortised scheduled repayments and, once any discount or fixed rate period expires, the current variable rate or the variable rate is applied for the remainder of the loan term (unless another fixed rate period is taken).

Creative Finserve will not store the information provided in this calculator.

What are debt consolidation loans?
If you've got lots of different debts and you're struggling to keep up with repayments, you can merge these together into one loan as a way of potentially lowering your monthly payments. These loans are usually secured against your home although some lenders do offer unsecured consolidation loans, but for smaller amounts. With a consolidation loan (which can be secured loan) you borrow enough money to pay off all your current debts and owe money to just one lender.
Who are eligible for a Debt consolidation?

The general factors taken into account while determining the eligibility of Debt consolidation are listed below:

1. Age (Min. 21 Year )

2. Maximum 58 age at time of closure of the loan for the salaried

3. Maximum 65 age at time of closure of the loan for the self employed

4. Total work / business Experience 3 yrs

5. Indian resident

Who can Avail a Debt consolidation?

Self Employed Individuals/Professionals

Proprietorship Firms

Partnership Firms

Private Limited Companies

What are the process in availing a Debt consolidation?

• Application

• Processing

• Documentation

  Property Valuation

  Personal discussion

• Sanctioning of the Loan

• Disbursement

The Process may vary from bank to bank in which they will do your verification of documents, residence, office, and a cibil check

What are the loan tenure options for Debt consolidation?

You can repay your loan over a period of 12 to 180 months

What are the documents required for applying for a Debt consolidation?

For Salaried:

1. Application form with photograph

2. Identity and Address Proof

3. Latest Salary Slips

4. Form 16 / appointment letter

5. Bank Statements (Last 12 months)

For Self-Employed:

1. Application form with photograph

2. Identity and Address Proof

3. Proof of business existence & Education Qualifications.

4. Last 3 years ITR

5. Last 3 years P&L and Balance Sheet

6. Bank Statements (Last 12months)

Please refer the complete list of documents on our website in the document section of Debt Consolidation.

When Debt Consolidation Loans Make Sense?

If you're hopelessly drowning in debt, know that you can't negotiate any lower interest rates with your credit card companies or creditors, or if the math works out, a debt consolidation loan may be a good decision for you. Similarly, if you're in serious trouble with high interest rates, high monthly payments (that you're having trouble with already), and too many bills, a debt consolidation loan might help. Combined with a debt repayment plan or credit counseling, it can be used to pay off all of your debt at a fraction of their original cost. If it may be a good time to strike, pay it all off, and walk away debt-free.

Of course, those situations aren't the norm, and most of us with credit card bills looking to get rid of them aren't in that position. That's not to say there aren't situations where debt consolidation loans can offer people who really need them the breathing room to get out of debt and organize their finances.

an debt consolidation work for you?

Learn how consolidating debt can help you improve your financial situation

Debt consolidation is one way to make paying off your debt more manageable. Instead of paying several minimum monthly payments on a number of bills, this repayment strategy involves getting a new loan to combine and cover your other loans or debts. You can then repay all of your debts with one monthly payment.

Simplify your payments

A debt consolidation loan can simplify your monthly payments into just one payment and may possible result in lower monthly payment.

Debt consolidation often works best for those with credit card debt, which generally comes with higher interest rates. If you own a home or other valued property that you can use as collateral, lenders will be more likely to offer you lower payments and interest rates. But remember: If you use your property as collateral, you risk losing it if you fail to repay the loan.

A debt consolidation loan with a longer repayment period may lower your monthly payment, but increase the total amount you repay over the life of the loan. Making more than the minimum payment can help pay off the loan faster.

How to add the Debt to Your Mortgage?

If you have a mortgage, you might look to see if you have enough equity in your home to consolidate your debt with your mortgage. This is usually people's preferred option since mortgage interest rates are usually much lower than other loan interest rates, and mortgages can be amortized (paid) over 15 years. This means you can arrange much lower monthly payments than with another type of loan. If you do choose to go this route, you should make sure that you try to pay off this extra mortgage as quickly as possible and don't do this very often. If you find yourself doing this every year or two, that means that you are spending more than you make, and it is going to take forever to get your mortgage paid off at this rate.

How much loan can I get?

You can get a Debt consolidation the registered value of your property depending on the Bank to bank

How would the value of my property be determined?

The value of the property would be determined through a valuation conducted by the bank

Does the property have to be insured?

Yes, property has to be insured. can varies from bank to bank

what will be done with the post-dated cheques if I request to change the mode of repayment/account for my loan?

Post-dated cheques/security cheques submitted earlier will be dispatched to your mailing address within 15 days, provided the revised instructions are verified and found to be in order.

How can I repay my loan?

The repayment of loan is done through Equated Monthly Installments. It can be paid through Post Dated Cheques (PDC) or Electronic Clearance System (ECS)

Can I pre-pay my loan?

The loan against property can be pre-paid along with the pre-payment charges. (Varies bank to bank)

How much time does it take for the disbursement of the loan?

The processing of the loans usually takes approx 15 working days after all the documents are submitted.

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