Debt Consolidation Loan India

Debt Consolidation Loan

Fund Source India offers debt consolidation loans for clients to pay off previous high-interest loans & to convert multiple loan accounts into a single loan for better monitoring the loan repayment & save money on loan repayments. We can pay directly to previous banks to take over the underline securities, give a single date EMI to borrowers & additionally give a moratorium period & additional funds for working capital requirements. With the help of a moratorium period, clients can utilize the business cash flow towards the growth of the company & additional funds for working capital provide an instant boost to accelerate.

Our experienced team does the assessment of client business & underline securities and explores the best possibilities on the proposal. We can fund in all major cities of India & loan amount starts from Rs.1 crore to any highest amount.

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What is Debt Consolidation Loan?

Debt consolidation loan is a new finance facility raised by a company/individual for taking over previous multiple loans from different lenders to form a single loan & to reduce the overall cost of the previous loans. This enables the borrower to have better control of his finance & streamline multiple EMI dates in a single EMI date.

Debt consolidation helps companies reduce interest costs on previous loans and better monitor loan repayment. Suppose a company has a previous finance facility of working capital cash credit limit & a term loan from a bank with a total exposure of Rs.12.5 cr at roi of 9 % annually. After two years he took a loan from an NBFC of Rs.5.30 cr at 12% annually and again after one year for delivering a big order he again takes a loan of Rs.4.5 cr at 13.5%. So there are a total of four different loan accounts in the company with different EMI dates & two loans are high-cost loan compared first loan facility raised by the company. So in order to keep better control on finance through the repayment of Loans Company takes a debt consolidation loan through which all loans are transferred to the new finance company at the ROI of 10%. This new loan comes with a moratorium period of six months which ultimately helps the company to utilize cash flow internally and additional funds given will be utilized towards purchasing raw materials & towards working capital requirements in the company. In this way, a debt consolidation loan helps the companies to take control of their finances & save money on loan repayments.

Features of Debt Consolidation Loans:

  • Helps to reduce the cost of loans
  • Helps to save money through loan repayments
  • Helps to manage finances
  • Provide a moratorium period to utilize internal accruals
  • Provide additional working capital
  • Can be raised on previous or new collateral
  • Available in PAN India
  • Loan starts from Rs.1 crore

Advantages of Debt Consolidation Loan:

  • Saves Money: As this new loan is raised at a better rate of interest comparable to previous loans so borrower can save a lot of money loans.
  • Restructure of Repayment Schedule: As previous loans are taken over through debt consolidation loan so a new repayment track is given with a moratorium period which works as emi free time for the borrower & he can use business accruals internally previously which was utilized for paying EMI’s.
  • Repayment Flexibility: Borrower can choose from different repayment methods like emi’s, ballooning repayments, or as per borrower requirement with moratorium periods.
  • Swapping of Collaterals: Borrower can offer new collateral to take out a previous collateral mortgage in a particular loan account. So this gives freedom of rearranging of collaterals.
  • Quick Approval: Our loan process time is much faster than others, as after submission of all required documentation, the loan will be approved quickly in a less short period than others.
  • Redesign the loan: The borrower can redesign this new consolidation loan means he can easily convert an existing working capital limit to a term loan as term loans are preferred by businesses for repayment of a loan. Moreover, additional working capital can be raised in the form of a limit.

Debt Consolidation Loan for Bad Credit

Fund Source India specializes in providing debt consolidation loans for bad credit and for borrowers whose credit scoring is not enough for taking loans from regular banks or NBFC, we can easily take over their previous loans.

If a borrower has multiple loans or a single loan in which repayment is not regular due to any reason & he wants to take over one or all of his previous liabilities to a new financial institute then we can surely help them out. We can transfer their existing loan liability to a new financial institution giving them additional working capital & moratorium period. Credit scoring or rating becomes very case-sensitive for raising new loans and if a borrower’s rating is affected due to irregularity in the current loan or having any past issue in loan repayments then it will be impossible to raise new loans in the current system. So it will be very crucial for a borrower to streamline current loan liabilities & raise additional funds for his business, then we come as the best alternative for providing debt consolidation loans for bad credit. The borrower can transfer their existing loan liabilities through us and can avail of additional funds to streamline his business.

Benefits of Debt Consolidation Loan for Bad Credit :

  • Available for borrowers with bad credit ratings due to issues in current loans or in past loans
  • Take over of Bad loans: We can easily take over the existing loans whose repayments were heavily disturbed due to any reason and converted into bad loans in the bank.
  • Fast Approval: Our assessment time is very fast, after the submission of all required documentation we can suggest the client about the best possibilities available and if the borrower agrees then we try to issue the offer letter from the financing company as soon as possible may be in a week time.
  • Moratorium: A moratorium period for repayment is given to the borrower this works as emi free period in this time client can utilize his cash flow towards the growth of the business instead of paying emi’s.
  • Additional working capital: As per requirements & eligibility additional working capital is provided to give a boost to the company.
  • Non-Financial Support: Besides arranging finance at crucial times, we also provide the best solutions & suggestions regarding current market availability & trends so that clients can plan out for the future also and so to prevent future defaults and raising of loans in the future.
  • Loan on new collateral: Borrower can raise this loan on new collateral offered to close previous loans & for working capital.
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