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Enjoy Zero Charges on All Commonly Used Savings Account Services
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- MD & CEO letter about the bank
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- Our History
- Letter to Shareholders on the 1st Annual Report after Merger
- Letter to Shareholders on the 2nd Annual Report after Merger
- Letter to Shareholders on the 3rd Annual Report after Merger
- Letter to Shareholders on the 4th Annual Report after Merger
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As per amendment in the Income Tax Rules, PAN or Aadhaar are to be mandatorily quoted for cash deposit or withdrawal aggregating to Rupees twenty lakhs or more in a FY. Please update your PAN or Aadhaar. Kindly reach out to the Bank’s contact center on 1800 10 888 or visit the nearest IDFC FIRST Bank branch for further queries.
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Enjoy quick, paperless disbursal in a few clicks
with IDFC FIRST Bank Personal Loans
EMI starting at ₹1,699/Lakh
Enjoy quick, paperless disbursal in a few clicks
with IDFC FIRST Bank Personal Loans
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Competitive interest rates starting at 10.75%
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Completely digital, paperless online process
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Balance transfer of existing Personal Loans and Credit Cards at affordable rates
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Flexible tenure up to
84 months
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Competitive interest rates starting at 10.75%
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Completely digital, paperless online process
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Balance transfer of existing Personal Loans and Credit Cards at affordable rates
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Flexible tenure up to
84 months
Debt Consolidation Loan
Debt can adversely affect your financial health and act as a roadblock to growing your savings. However, there are several quick, convenient and simple ways to reduce it – and a debt consolidation loan is one such prudent solution. Taking the debt consolidation route narrows your focus towards one loan. By taking out a single loan to pay off your old debts, you are left with just one monthly payment. It is easier to manage, compared to multiple loans.
The main benefit of a debt consolidation loan is that it reduces your interest rate and EMI amount. A single loan will attract less interest than multiple loans of varying interest rates. But before applying for a debt consolidation, you must analyse the applicable rate of interest, finance costs, and early payment fees.
Features and Benefits of a Debt Consolidation Loan
A debt consolidation loan can be instrumental in helping you manage your finances better. Here are some of its key features and benefits:
Quick approval
Debt consolidation loan applications are processed and approved within a few hours. After receiving an application, the lender verifies the applicants’ credit history and credit score. If the result is satisfactory, the applicant will receive the loan amount in a few hours.
Digital approach
IDFC FIRST Bank, among other lenders, leverage technology to offer a hassle-free application process. You can apply for a debt consolidation loan directly via the lenders’ website and mobile banking app.
No collateral needed
Unlike other loans, a debt consolidation loan does not require collateral or security. You can get a personal loan for debt consolidation using your credit history.
Flexible repayment terms
One of the major advantages of taking out a debt consolidation loan is that you can choose your repayment term. IDFC FIRST Bank allows you to select a tenure between 6-84 months. You can also choose the loan amount you need to clear your debts.
Easy prepayments
Lenders allow prepayment of debt consolidation loans. While you may have to pay a small prepayment fee, the amount is comparatively less than in other loans.
How to apply for a Personal loan for Debt Consolidation?
Most lenders, including IDFC FIRST Bank, allow you to apply for a debt consolidation loan online. Here is a step-by-step guide to applying for a debt consolidation loan through IDFC FIRST Bank:
Stage 1: Leave Details
Apply for Balance Transfer by leaving your details. Leave Details.
Stage 2: Approval
Your loan request will be approved if you pass the eligibility check.
Stage 3: Upload documents
Complete the verification process by uploading the required documents.
Stage 4: Disbursal
When your documents are verified, the loan amount will be transferred to your account.
Eligibility
Documentation
For a debt consolidation loan, you must submit your:
- PAN Card
- Form 60 (To be submitted only if PAN card is not available)
- Any 1 Official Valid Document (OVD) is mandatory from the below:
- Valid Passport with expiry date, photograph, and signature
- Aadhaar card issued by the Unique Identification Authority of India (UIDAI)
- Voter’s ID issued by the Election Commission of India
- Driving license issued by regional transport authority
- Job card issued by the National Rural Employment Guarantee Act (NREGA) and duly signed by an officer of the state government
- National Population Register containing details of name and address
Who can apply?
You can also use this personal loan eligibility calculator to quickly check your eligibility for a debt consolidation loan.
View the fees and charges on Debt Consolidation Loan
Debt consolidation loan charges can vary depending on the lender. The basic fees, though, remain the same as personal loans. IDFC FIRST Bank has the following fees and charges for debt consolidation loans:
- IDFC FIRST Bank offers an interest rate starting at 10.75%. It is among the most affordable in the industry.
- A processing fee of up to 3.5% is deducted at the time of disbursal. If the loan amount is less than ₹1 lakh, the bank charges ₹2999 as processing fees.
- An EMI bounce charge of ₹500 is levied on every failed EMI payment.
- Cancellation/rebooking charges stand at 1% of the loan amount, plus the interest incurred from the date of disbursal till the receipt of cancellation request, or the first EMI presentation date, whichever is earlier. The cancellation request, however, must be received within 15 days of the loan booking date.
- Foreclosure charges stand at 5% of the loan amount. Foreclosure or prepayment of the loan is possible after payment of 12 or more EMIs.
FREQUENTLY ASKED QUESTIONS
What is a debt consolidation loan?
A debt consolidation loan is a type of personal loan used to repay existing debt. It allows you to concentrate on making only one payment each month, which helps you better monitor your finances.
How to instantly apply for a debt consolidation loan?
You can apply for an instant debt consolidation loan through the different instant loans app.
What is the eligibility criteria for a debt consolidation loan?
The eligibility criteria to apply for a debt consolidation loan differs from one lender to another. You must check with the lender of your check to know their eligibility criteria before applying for a loan. Generally, though, you must fulfil the following requirements:
- • For salaried individuals
- Minimum age: 23
- Maximum age: 60 (at the time of loan maturity) or retirement, whichever comes first.
- Minimum monthly salary: ₹25,000 per month
Do debt consolidation loans go into your bank account?
Yes, your debt consolidation loan amounts go into your savings account. You can then use the funds in your account to repay your other loans.
How much time does it take to get approval for a debt consolidation loan?
Approvals for debt consolidation loans take the same time as personal loans. The process can be completed quickly if you have a clean credit history, and your documents are in place. The loan amount usually reaches your account in 48 hours.
What is the tenure for a debt consolidation loan?
Borrowers have the freedom to choose their debt consolidation loan tenure. They can pick any tenure from 12-84 months.
