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Personal Loan

How a Personal Loan can help you repay and manage your debt smartly

Key Takeaways

  • Debt consolidation merges multiple loans into a single EMI payment which helps make repayment easier.
  • Opting for a Personal Loan with a lower interest rate can help bring down your overall debt costs.
  • Paying timely EMIs on a consolidated loan not only makes for easy financial management, it can also enhance your creditworthiness.
21 May 2025 by Team FinFIRST
Manage Debt Smartly with Personal Loan
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Managing multiple loans at the same time can get quite overwhelming since you have to deal with varying interest rates, repayment schedules, and due dates. Missed EMI payments negatively affect your credit score, and loans with high interest rates can build up quite the debt. This is where consolidating all your existing debt with a Personal Loan, following a single EMI structure, can help you take care of your financial obligations much more effectively. Let's understand how a debt consolidation loan can make loan repayment easy.

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What is debt consolidation?
 

Debt consolidation is availing a Personal Loan and combining and paying off multiple pending loans. You don't pay multiple EMIs anymore; you pay one for the overall loan. It saves not only interest but also facilitates easy budgeting.


Advantages of debt consolidation
 

Here are some key advantages of consolidating debt:

  • Single EMI payment: No need to keep track of multiple due dates.
  • Pay off the debt sooner: Following a scheduled payment cycle can help clear off the long-standing debt sooner.
  • Improvement in credit score: Clearing payments on time can enhance your credit score.

How to consolidate your debt using a Personal Loan
 

Follow these steps to consolidate your debt through a Personal Loan:

1. Estimate the total outstanding debt
 

List down all the loans you have, including your credit card loans, personal loans, and other high-interest loans. Calculate what you owe, the rate of interest you are paying, and the remaining tenure for each loan.


2. Comparison of the loan
 

Before applying, learn about personal loan interest rates, processing charges, and repayment terms from different lenders. Taking a loan with a lower interest rate than your current debt will save money.


3. Check your eligibility
 

Get a Personal Loan eligibility check. It considers your income, payment record, and credit score.


4. Use Personal Loan for consolidation
 

Once you've cleared the eligibility test, avail a consolidation loan from a lender offering instant approval, minimal paperwork, and flexible repayment tenure.


5. Pay off pending loans
 

Use the loan amount disbursed to pay off your pending amount. Get an NOC (No Objection Certificate) from your previous lenders so that you can reflect the modification in your credit report.


6. Stick to your new EMI scheme
 

After consolidating your debts, focus on timely EMI payments to stay debt-free. Plan your budget carefully to avoid future financial burdens.

Managing debt isn’t just about making payments - it’s about creating a smarter financial future.

Why choose FIRSTmoney for debt consolidation?
 

FIRSTmoney offers a seamless, 100% digital process to help borrowers consolidate debt easily. Here’s why it is a smart choice:

  • Take loans ranging from ₹ 10,000 to ₹ 10 lakhs based on your eligibility.
  • Avail low interest rates of 10.99% p.a.
  • Choose repayment tenure between 9 and 60 months based on your affordability.
  • Check your personal loan eligibility and get an instant loan disbursal.
  • Pay back the loan entirely at any time without incurring any foreclosure charges.


Conclusion

A Personal Loan for debt consolidation streamlines your finances, saves you stress, and can make you debt-free as early as possible. Consolidating several high-interest loans into single-structured EMI payments provides you with greater control over repayment. Taking a loan from a reliable borrowing source such as FIRSTmoney assures you of the best interest rates, convenient repayment plans, and an instant digital process, which helps with smoothly handling your finances.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.

The features, benefits and offers mentioned in the article are applicable as on the day of publication of this blog and is subject to change without notice. The contents herein are also subject to other product specific terms and conditions and any third party terms and conditions, as applicable. Please refer our website www.idfcfirstbank.com for latest updates.

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