Is it a good idea to take a Personal Loan to repay debt?

A series of unfortunate events can sometimes land you under the pressure of mounting debts. You may have maxed out your Credit Card(s) in anticipation of a large sum of money coming in, which never did. You may have borrowed money from your family or friends in case of an emergency, which you have not been able to pay back. You may have taken an urgent loan at a very high interest rate, which is now becoming a burden to repay. It could be all of this combined. Misjudgement or mismanagement on your part can leave you in a tight spot.

If you find yourself facing such a situation, taking a Personal Loan can be your best bet. Below are few reasons why that is a good idea:

  • Consolidated Debt – If you find yourself juggling with a lot of loans or monthly repayments, you can consolidate the entire debt into a single Personal Loan. One of the good things about a Personal Loan is you are not required to state the purpose of your loan. Depending on your eligibility, you can borrow enough amount to repay all pending debt. This way you will not struggle with multiple payments. You will have a single EMI to pay off.
  • Lower Interest Rate – Interest rate on Personal Loans can be fixed or floating. You can speak with your bank representative and opt for an interest rate which is lower as compared to your existing rate of repayment. Basis your eligibility and your credit score, you may be offered a suitable interest rate. Floating interest rate can significantly lower the interest amount being repayed.
  • Quicker pay-off – Personal loan amount can be disbursed as quick as 10 seconds (pre-approved HDFC Bank customer) to within 4 hours (non HDFC Bank) of applying for one. Repayment for personal loan is in fixed monthly instalments, EMIs. You can choose a tenure suitable to you, thus choosing a monthly amount which is easier for you to repay. Doing this will help you quickly clear off your pending debt, while leaving you with a fixed amount to be repaid every month for a definite tenure.

Personal loans can be a very helpful tool to fulfil a variety of monetary needs. In high debt situations, you can opt for a larger sum of money to borrow as Personal Loan and repay it stress-free through a flexible repayment schedule. You can even take advantage of EMIs starting at Rs. 2187 per lakh.

You can read more about the Personal Loan benefits here.

Repay all your debt with ease, and Jio Shaan Se!

To know more, and to apply for HDFC Bank Personal Loan, click here.

* Terms & conditions apply. Personal Loan disbursal at sole discretion of HDFC Bank Ltd.