Debt Consolidation Loan- A Long Term Secured Solution For Streamlining Business Loan Expenses

When you are busted with loans from all other ends and paying off their interests seems to be a cumbersome process getting all loans streamlined into a single one becomes a great option. Debt consolidation comes as one such option. In simple terms, a debt consolidation is a process of debt refinancing where a single general debt is taken to payoff all other debts, liabilities, pending bills etc. especially the unsecured ones.

On paper it is possible to consolidate or merge all loans together. However in reality it’s not feasible as every loan has a separate tenure and separate interest structure. In reality, when asked what is the best debt consolidation loan there can be a number of methods suggested. One method is to lump all credit card payments into a single one. Another method is using an existing credit card's balance transfer features. Getting home loans equity is another form of consolidation seen.

What is the eligibility for acquiring loan?

Generally the eligibility for acquiring debt consolidation varies from lenders to lenders. However, here are the general requirements for getting debt consolidation loans.

• Age: normally the age of the applicant eligible varies between 22 years to 67 years
• Income: For salaried individuals the minimum income varies from Rs.15000 to Rs.37000 depending upon the lending agency. How to know that the general salary structure depends on the tier of the city the individual is living in. For example, the individuals living in metro cities have higher salary rates as individuals living in non metro cities.
• Place of work: Generally the organisation you are associated with also plays a role in salary brackets. The individuals working in MNCs or well known companies have lower salary than individuals working in start-up’s
• Residence: The applicant should live in that city for at least past one year
• Experience: The individual should have a minimum two years of work experience

Calculation of EMI

The mathematical formula for calculating the consolidated loan EMI includes

E= [P x R x (1+R) ^N]/ [(1+R) ^ (N-1)]

Where E= EMIP= principal amount takenR= Rate of interestN= tenure

Basically the EMI applied on loan consolidation depends on three parameters which are principal, rate of interest and tenure of payment.Best debt consolidation loan providers: Tips to choose

• Online credible presence

Start your research by logging into some of the leading online portals and check if the targeted learning agency is listed in their site or not. Some of these portals also list out the history of any legal action or dispute filed against the agency.

• Affiliations

Every financial agency should have some affiliations which directs their mode of work as per the central government organisations

• Non profit status

If your learning agency claims to be a non-profit organisation, remember to check their certificates in support of the claim.

To wrap it, don’t forget to run a deep background check along with their national and global outreach, their subsidiaries of present and their market credibility. After properly checking all the documents choose your lending peers.

Reema Sharma is a professional content writer specializing in blogging, press releases. I would like to share some knowledge by that Articles.