Bangalore is mainly referred to as the Silicon Valley of India. It serves the millennial generation with exciting opportunities both professionally and personally. This capital city of Karnataka is home to the top IT national and international companies that have led to the growth in the population of salaried professionals.
Living in a city like Bangalore is quite costly, from shopping in the mall to paying the rent, costs you enough. Because of this, credit cards have become an integral part of working people’s life to fulfil their increasing financial needs. As a result, it will put more pressure on the wallet by adding extra expenses to the monthly budget.
Credit cards come along with a long financial commitment. If you ignore credit card dues, it can increase the debts with higher interest rates. If you use multiple cards to tackle your expenses, you may face difficulty handling all the payments. In this case, a consolidation loan can help you move your credit card debts to an instalment loan and streamline your budget.
What is the Debt Consolidation of Credit Cards?
Managing your card debts on time is necessary to maintain your credit card score. It works as a strategy to combine all the credit card balances into a single payment. It reduces the cost of interest, shortens the period of repayments, and gives freedom to manage other expenses. Getting a credit card debt loan is the ideal and inexpensive way to pay the student loan, credit card debt, and other liabilities.
How does Debt Consolidation Loan for Credit Cards work?
A credit card debt loan works like a strategy to plan monthly payments for borrowers who face difficulties in managing multiple cards debts or outstanding balances. A personal loan for credit cards is designed to pay down all high-interest debts in the form of one loan payment.
Debt consolidation loan provides you with a loan amount from Rs 50,000 – Rs 10,00,000 with monthly EMIs and lowers your interest outgo. If you consider consolidation loans, try to pay attention to the payment schedule. It will stop the vicious cycle of paying off multiple debts.
Why should you choose a Credit Card Takeover Loan?
A personal loan for credit card debts is the ideal way to maintain your creditworthiness. Paying off the loan sooner can reduce interest payments and reduce monthly cash outflow. Before considering the consolidation for credit card bills, check out the listed reasons that explain why you should go for personal loans online:
- Single EMI Payment: For Borrowers, it is hectic to keep track of all monthly payments of multiple credit cards. Missing any payment can show a negative impact on your credit score. Consolidation of your debts with a personal loan can rescue you from hassles by allowing you to pay off the debts in one go. Later, you can pay the loan amount in the form of EMI every month.
- Keep Savings Intact: You have saved a small amount from your monthly salary for emergencies. Paying off the debt using your savings could be the right thing to do. But, it will take all that you have saved till now. So, it is better to take a debt consolidation loan to get out of a huge pile of debts.
- Lower Interest Rates: Borrowers should go for instant debt consolidation as it is a cheaper option than credit cards or other financial modes. You need to pay an interest of 1.5% – 2% monthly on the loan amount, whereas a credit card charges interest of 2.5-3% monthly.
- Easy Repayment Tenure: A Credit Consolidation Loan will help you achieve lower monthly payments. Try to make monthly payments in fixed EMI within the agreed tenure.
- Improved Credit Score: Taking a consolidation loan to clear card debts without paying can boost your credit score and attract other future creditors. Your credit score is crucial to maintaining your bank account health.
Features and Benefits of Debt Consolidation Loan
Loan Amount: LoanTap has designed this debt consolidation loan online for borrowers with a bad credit score. It offers the loan amount ranging from INR 50,000 to INR 10,00,000. However, the exact loan amount will be decided based on your inputs and credit checks.
Unsecured Loan: Some lenders will ask you for any security or collateral in exchange for the sanctioned loan amount. However, LoanTap designed this loan to cater to the needs of every individual with personal financial assistance. So, clear credit card debt with a personal loan requires no assets as a mortgage against the loan amount.
Timely Approval: Personal loan is easy to get through a simple process, where you can create your profile and enter your details to get the loan instantly. If you match all the criteria, we will approve your online application within 24-36 hours.
Minimum Documentation: Zero paperwork rule is applied to get you any personal loan for debt consolidation. You don’t need to fill out numerous forms, only submit some basic documents to verify your details in less than 24 hours.
No Hidden Charges: LoanTap follows a completely transparent process to disburse the loan amount. No hidden costs will apply to the sanctioned amount. There are no prepayment charges or foreclosure charges after six months.
Low Processing Fees: Borrowers will get charged a small processing fee of 2% + applicable taxes on the gross loan amount. It may vary depending on the loan amount sanctioned. Other than this, no prepayment charges need to be paid during the loan processing.
Customized and Flexible Instalment Options
Living in Bangalore depending solely on your salary is tough. If you are a salaried professional or self-employed, you might face a financial crisis while repaying credit card bills. To organize your expenses and manage your monthly credit card debts, a personal loan offers you customized instalment options:-
Step up Loan Installment: Step Up Loan is an ideal solution if you know the exact loan amount and tenure time. It allows you to pay interest only on the outstanding principal for the three months, followed by the fixed EMIs in the remaining tenure. This loan gives you enough space to manage expenses the way you want.
Term Loan: This Term Loan allows you to make the repayments via Fixed Equated Monthly Installments, where EMI is the sum of interest plus the principal amount. It helps to reduce the monthly payments and interest on the total loan amount.
You can choose one of them according to your capacity and monthly income. Also, you can calculate the monthly repayment amount and also decide the tenure using the personal loan EMI calculator.
Debt Consolidation Loan Eligibility Criteria
Debt Consolidation is beneficial as it compiles your debts together to lower the payments and overall interest rates. It also reduces the emotional stress when you see higher interest rates on late payments. To clear credit debt quickly in India using the credit card consolidation loan, you need to meet all the following conditions:
- You should be above or 21 years of age.
- You must be an Indian citizen or resident
- Your net monthly salary should be over INR 30,000/-
- You must be a full-time salaried employee or self-employed with a steady income.
A credit card takeover loan frees up your cash to make larger payments. You can use the savings for other expenses or invest in the future. LoanTap can become your friend in need, where we provide sufficient balance to reduce mental stress and help you improve your credit score over time.
Documents Required for Debt Consolidation Loan Online
LoanTap offers you a contactless and onetime registration process, where you need to fill out an online loan application. Along with this, some documentation is needed to verify your identification and check your creditworthiness. Here is the list of the following documents:-
- PAN Card to check the financial background.
- Professional or company details.
- Residence proofs: Aadhaar card, Electricity bills, Passport.
- Identity Proofs: Driving License, Aadhar Card, Voter ID.
- Latest Bank statement of the salary account for the six months.
- Last 6 month transactions for self-employed.
- ITR of last two years for self-employed
Make sure you have checked the documents thoroughly and uploaded the valid ones. Also, it will decide whether or not your loan application should get approval. Anything wrong with the documentation makes the lenders reject your application or hinder the process of instant loan disbursal.
Steps to apply for the Debt Consolidation Loan
LoanTap is the most trusted digital lender to get personal loans for your financial needs. If you need immediate funds, follow this step-by-step guide to transferring credit card debt to loan in less than 24 hours:-
- Step 1: Visit this link or install the LoanTap app from Google play store/App store.
- Step 2: Create your profile by entering the required details, such as professional, company name, and type of occupation.
- Step 3: Once you have filled out the application form. Upload the required documents to verify your profile.
- Step 4: Once the KYC is done, wait for the response from the LoanTap team.
- Step 5: With the application verification, your loan will be approved on the same day and the amount will be credited to your account.
As soon as you get the amount, the team will send you an approval to the email address. After that, you can withdraw as much as you need to pay off your debts in one go. During the process, the LoanTap team may ask you for more documents during credit checks.
Tip to know before you Apply for Debt Consolidation Loan Online
Now, you understand the process of getting a personal loan for consolidations. It is also necessary for you to consider some points to make a wise decision for the consolidation of credit cards:-
- Check your credit score to get a sense of what type of consolidation loans you require and qualify for.
- Look for credit reports to find any error, so you can dispute it, and ensure it is rectified.
- Make a list of all your credit card debts and monthly payments to know whether or not a debt consolidation loan is financially suitable for you.
- Consider other loan options that offer lower APR and provide enough amount to cover all your debts.
- If you qualify for a loan, use a debt consolidation loan calculator to estimate monthly payments and decide time for paying off.
- Set up an auto-debit system to not miss any payments and get reward points.