Why Does One Require Debt Consolidation Loan

The particulars of debt consolidation loans aren’t all that difficult to understand. It is a type of debt refinancing that allows you to clear other debts. In short, debt consolidation includes amalgamating multiple unsecured debts and paying them off with a loan. These outstanding debts can include credit card balances, medical bills, personal loans, etc. There are many ways to consolidate debt. Some of them are about transferring the outstanding amount to zero through a low-interest credit card. You can also consider taking a debt consolidation loan, or apply for a home equity loan, or pay back dues through a debt repayment consolidation plan.

How it works

There are some conventional methods of debt consolidation. You can get loans from a bank, a Non-Banking Financial Company, money lenders, etc. The loan should be sizeable enough to get rid of all outstanding debts that you have. Thankfully, you will find Debt Consolidation Loan in India at affordable interest rates and EMI options. However, you must understand how the process works. The first step involves the calculation of the total amount paid for credit cards every month. It also includes the average interest paid on the same cards. The result provides a baseline number for comparison purposes. After that, you have to check out your monthly expenditures. Some people can reduce their expenses, lead their lives within a stipulated budget and clear off their loans. A debt consolidation is for those who can’t do the same.

Types of Loans

Dhanvarsha Finvest Ltd. is a reputable and renowned NBFC. It is one of those few financial corporations that provide Debt Consolidation Loans in India. Of course, they have a few other financial support schemes as well. They provide working capital loans, loans against property, personal loans, commercial purchase loans, etc. Working capital loans act as short-term as well as long-term financial support to businesses. Loan against property, as the name suggests, is a form of long-term financing against residential or commercial property. Commercial purchase loans are for those who plan to expand their business. Finally, personal loans are for satisfying your requirements.

Documents needed

Whenever you plan to apply for financial support from a bank or an NBFC, you have to provide several documents. For debt consolidation loans, those are,

• The application form with passport-sized photographs of the applicant attached to it.• Photo-identity proof (passport, PAN card, driving license, VoterID)• Property documents (latest sale deed, property chain link documents, approved sanction plan, latest property tax receipt, etc.)• IT returns for the last three years.• Maintenance bills.• Bank statements for the last twelve months.

Self-employed non-professional entities and self-employed professionals must provide,

• Balance sheet and P/L statement for the last two years.• KYC documents along with certificates that prove the existence of your business.

Salaried employees must provide,

• Form 16 for the last two years.• Salary slips for the last three months.

How to Apply

As already mentioned, there aren’t many banks, NBFCs and other such licensed entities that provide debt consolidation loans. However, you shouldn’t worry about it. You can contact DFLTD at 022-67708505/022-28264295. You can also send an email that contains your details to contact@dfltd.in or explore the website www.dfltd.in. You will notice an "apply for loan" section on this webpage, which you have to fill up. Once submitted, a customer service representative will contact you shortly.

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