Credit card usage has increased across India by a significant margin over the last few years. There were approximately 50 million active credit cards in circulations across the nation, showing the growing demand and usage of such alternate currency.
Unfortunately, a large number of credit card users, especially first-time cardholders, often face accumulating debt while using this financial tool. Credit cards mostly MasterCard & visa usually charge a higher interest rate compared to other forms of advance.
One effective method to mitigate substantial credit card debt is to avail a debt consolidation loan such as a personal loan in Chennai. One can easily opt for personal loans from a financial institution or NBFC as they require no collateral and come with easy to meet eligibility criteria. Aside from that, personal loan offers a host of benefits that makes repayment easier for borrowers.
How to pay your credit card debt using Personal loans
Personal loan in Chennai comes with a host of features and benefits to ease the borrower’s financial strain.
No end use restriction –
Personal loans have no end-use limit, therefore they can be used to finance a wide range of requirements, including debt consolidation. It will also enable you to save money on EMI each month by consolidating your debt.
You can calculate your outstanding credit card debt and repay the total sum with the disbursed funds of a personal loan. Make sure to calculate the total credit card due, including its rate of interest, late fee, utilised credit limit, etc.
- High loan amount – You can avail a personal loan of up to Rs.25 lakh if you meet the required eligibility criteria. It offers ample funds to repay multiple credit card debts, allowing you to consolidate any outstanding amount with ease.
- Zero collateral – Personal Loans can be availed much more quickly compared to secured loans since there is no need to pledge any asset. It also eliminates the chances of losing the property if a borrower fails to pay an EMI on time.
- Quick disbursal – The application process for personal loans require minimal formalities and the loan amount is disbursed to borrowers within only a few hours of approval. It ensures availability of adequate finance to consolidate existing debt whenever needed.
NBFCs like Bajaj Finserv also bring pre-approved offers to make the process of availing finance quick and hassle-free. Aside from personal loans, these offers are also available on home loans, business loans, and other retail loans like a credit card. Offers by providing a few essential details, such as your name and contact number.
Flexible repayment period –
You can choose a tenor period for a personal loan as per your repayment capacity. Longer tenor means lower EMI and shorter tenor means higher EMI but reduced interest rates. Contrary to credit cards, which offer a fixed billing cycle, flexible repayment tenor of personal loans allow you to consolidate the debt without worrying about missing on EMIs.
Moreover, you can also use an online personal loan calculator to determine the EMI and repayment tenor that is suitable according to your repayment capability. You only have to enter the loan amount that you wish to avail, the repayment period and the personal loan interest rates to compute the exact EMI amount.
Personal loan eligibility criteria:
Financial institutions and NBFCs provide instant approval for personal loans if you meet the eligibility criteria. This is why you should check the eligibility criteria before applying for such a credit.
Go through the eligibility criteria mentioned below –
- CIBIL score should be 750 or higher to be eligible for personal loans.
- Applicants should receive a minimum salary of Rs. 25,000 and above. Even so, the minimum salary threshold differs depending on the city where you reside. Therefore, before applying for a personal & others loan, you should check the minimum salary requirement for a personal loan with your lender.
- Applicants should be a resident of India between 23 to 55 years of age.
- An individual applying for a personal loan should be currently working in a reputed MNC or in the private or public sector.
Not only will it help you save money on EMI every month, but it will also help you to improve your creditworthiness over time.