How to Simplify Your Finances with IDFC FIRST Bank Debt Consolidation Loan

Having to manage multiple debts, such as credit card debts, personal loans, or payments for several EMIs, can be stressful and confusing. Keeping track of repayment dates, interest rates, and total outstanding amounts for numerous loans becomes difficult when you have several. This can affect your credit scores and limit your ability to save. To address this, consolidating loans into a single loan may be a solution, such as with a debt consolidation loan like the FIRSTmoney smart personal loan from IDFC FIRST Bank.

Understanding Debt Consolidation

Debt consolidation involves combining multiple loans into a single loan with one monthly repayment, often at a potentially lower interest rate. This can simplify debt repayment compared to handling several EMI payments with varying interest rates on different dates. The single debt consolidation loan pays off your existing loans, resulting in one loan and one monthly EMI. Solutions like FIRSTmoney from IDFC FIRST Bank offer interest rates starting at 10.99% per annum and access to funds up to ₹10 lakhs for debt consolidation. FIRSTmoney also provides flexible tenures from 9 to 60 months, which can help in managing EMI payments.

Benefits of a Debt Consolidation Loan

Some potential advantages of using a debt consolidation loan through IDFC FIRST Bank’s FIRSTmoney include:

• Zero foreclosure charges – Allows for early repayment without extra costs.
• Competitive interest rates – Interest rates starting at 10.99% p.a
• Flexible loan tenures – Repayment tenure options from 9 to 60 months.
• 100% digital process – Online loan application and disbursal process, with disbursals in some cases as fast as 30 minutes.
• Greater flexibility in getting additional loan – Potential access to multiple on-demand loans without a new application, for urgent financial needs.

Eligibility Criteria for the Debt Consolidation Loan

For salaried applicants, the general eligibility criteria for IDFC First Bank’s debt consolidation loan include:

• Minimum age –21years
• Maximum age – 60 years
• Employment – Salaried and self-employed individuals
• Credit score – A CIBIL score of 730 and above

It's advisable to check preliminary eligibility on the official website us personal loan eligibility calculator before applying.

How to Apply for an IDFC FIRST Bank Debt Consolidation Loan

Applying for a debt consolidation loan via FIRSTmoney can be done through their website or mobile app. The general steps involved may include:

1. Start Online

Scan the QR code on your desktop or tap the ‘Apply Now’ button on your mobile phone to start FIRSTmoney smart personal loan Digital Journey

2. Verify Eligibility

Provide basic information to check your eligibility.

3. Customise Your Loan

Select your loan amount (up to ₹10 lakh) and repayment period from 9 to 60 months, and connect your bank account to receive the funds.

4. Complete Video KYC

Utilise your physical PAN card for instant video verification.

5. Receive Funds

Upon verification, the loan may be disbursed to your account.

You can typically check the application status online.

Tips for Managing Finances After Consolidation

To help avoid future debt, consider these money management tips:

• Create a monthly budget to track income and expenses.
• Build an emergency fund for unexpected expenses.
• Be mindful of spending on needs versus wants and avoid impulsive purchases.
• Save and invest regularly.

Conclusion

If debts from multiple loans or credit cards keep you from managing your finances, a debt consolidation loan, such as FIRSTmoney from IDFC FIRST Bank, can offer a way to simplify debt into a single monthly payment and potentially reduce the interest burden. Features like digital approval, various tenure options and transparent charges may contribute to easier debt repayment. Implementing money management practices can support the benefits of debt consolidation in pursuing long-term financial stability.

Note to the reader: This article is part of Hindustan Times's paid consumer connect initiative and is independently created by the brand. Hindustan Times assumes no editorial responsibility for the content, including its accuracy, completeness, or any errors or omissions. Readers are advised to verify all information independently.