How to Consolidate Loans

Understanding the Challenges of Multiple Loans;

How to Consolidate Loans. Many times, we take loans as per our needs, and then we take it again when we need it. So, in this way, slowly, slowly, we get a lot of installments. And in this way, our family’s management starts getting worse.

Repaying Multiple Installments

Now, how do we repay these installments? Where did the money come from? And from where should we pay the money? So, we face a lot of problems in this. So, in today’s article, we are going to tell you how to consolidate loans into one installment. You can repay it through one installment.

Introduction to Loan Consolidation

So, let’s go. Hello, friends. I am Shailendra, and welcome to your finance personals website.

Common Problems with Multiple Loans

As we were talking, if we have taken a lot of small loans, and we are facing problems, then how can we repay them? How can we get rid of them? Many times, I have seen people who don’t even know when they take so many loans. And later, they face so many problems that they start panicking. Like, how can I repay the money? From where should I repay? When we take, we don’t even know.

What Is Loan Consolidation?

Many times, after taking so many loans, you feel that how can you repay? In such a situation, there is a thing called loan consolidation. By consolidating the loan, you can get rid of all these loans. What is loan consolidation? We will understand it in detail.

How Loan Consolidation Works

But there will be a permanent solution to your problem. How to repay the loan as soon as possible? How to finish the loan as soon as possible? We have already talked about them. 

Example of Successful Loan Consolidation

Recently, we got a customer a loan. He also had the same problem. He had taken a lot of small loans according to the offer. He also had a lot of interest. When we take small loans, the interest is very high.

Reducing Interest with Loan Consolidation

25%, 28%, 32%. We have seen loans of 40-45%. In such a situation, a lot of money goes to the bank from your pocket. We understood the problem of this customer. So, we consolidated the loan for him. After consolidating the loan, now he is paying half of the previous loan.

Improving Financial Management

And the loan amount that he had taken, we have doubled the loan amount. Now, we have given him a loan amount of 3 times. And the interest has become half. Now, it is easy for him to pay half the interest. And he has got more money. And he has also got less interest.

How to Consolidate Loans

With this, he is able to run his business well. And his problem, which was stuck in small loans, has also been solved. So, what is how to consolidate loans? If you are also worried about it, then let’s understand it in detail on our board.

Detailed Explanation of How to Consolidate Loans

So, friends, now we are on our board. And here we understand in detail how to consolidate loans and how we do it. Suppose, you have taken a loan of 2 lakhs. You have taken a loan of 5 lakhs. You have taken a loan of 3 lakhs. You have taken a loan of 50,000 rupees.

Calculating Loan Installments

Now, you are paying their installments. Suppose, you are paying 2 lakhs for 10,000 rupees installments. Because small loans are available for less interest. So, installments are more. You are paying 5 lakhs for 21,000 rupees installments. You are paying 15,000 rupees for 3 lakhs. And you are paying 5,000 rupees for 50,000 rupees installments. So if we talk about total installments then it will be 10000, 20000, 30000, 31000, 15000, 46000 and 5000. It will be approximately 51000.

Consolidating Multiple Loans into One

So, the total installments will be 51,000 rupees. Let’s see the total amount of loans. 2, 5, 7, 3, 10, 60,000. In a loan of 10,500 rupees, you are paying installments of 51,000 rupees. There is no problem with money. Because the money is so less and the installments are more.

Steps to Consolidate Your Loans

So, what you have to do is to consolidate all these loans. Consolidate means that you have to convert all these loans into just one loan. How will it be consolidated? The best way is to suppose you have taken a personal loan. There are small loans in the personal loan. You can take a big loan. But with a personal loan, your commitment will not be limited.

Using Property for Loan Consolidation

We will tell you a good way that if you have a property, like a house or a shop, you can mortgage it and take a loan from the bank.

Conclusion: Why Loan Consolidation Is a Smart Choice

Now you have taken a personal loan. Suppose your house value is Rs. 50 lakhs. You can easily take a mortgage loan Here your total is Rs. 10 lakhs. If you want to get a loan of Rs. 15 lakhs and cover Rs. 10 lakhs, plus Rs. 5 lakhs or more. Or you want a loan of Rs. 20 lakhs.

Calculating the Benefits of Consolidation

If we talk about a consolidated loan, suppose we take a mortgage loan and we need Rs. 15 lakhs. Why do we need Rs. 15 lakhs? Because we have to cover Rs. 10.5 lakhs. Because their installments are very high. We want to get Rs. 5 lakhs or more for our business.

Comparing Monthly Payments

If it is a loan of Rs. 15 lakhs, then the installments will be around Rs. 20,000. If we look at it broadly, you will get Rs. 5 lakhs extra. You will get Rs. 5 lakhs extra. And you will get Rs. 30,000 in the fixed amount. Discount it. Here you are paying Rs. 51,000 in a loan of Rs. 10 lakhs. You are getting worried every month. You are cutting your family’s income. You are reducing the facilities for your children.

Final Thoughts on Loan Consolidation

But don’t do this. The best way to get out of this is to get a loan consolidated. We call it how to consolidate loans. What you have to do is take a mortgage loan. You will get a mortgage loan for a long term. You will get it for 15-20 years. Due to the increase in the tenure, your installments will be reduced. You will get a loan of Rs. 15 lakhs in the fixed amount of Rs. 20,000. And it will come in the range of Rs. 18,000 to Rs. 20,000. We will take an average of Rs. 20,000.

Take Action Today

If you were paying Rs. 50,000 or Rs. 51,000, you will pay Rs. 20,000. Otherwise, you will be left with Rs. 30,000. You will be able to give your family the facilities that you want. You will be tension-free because you will get a long term.

Overall, how to consolidate loans is very good. If you are stuck in something and you have a property, you can get a loan consolidated. You can take a loan and close your old loan. It will have a condition. If you are paying Rs. 51,000, you will have a condition that you will close all your loans.

Final Advice

It will make a cheque for the remaining Rs. 5 lakhs. You will get the closure receipt later. Here, you will get Rs. 15 lakhs. You will get Rs. 5 lakhs extra in your account. You can do business with it. If you get less than Rs. 30,000, you can easily pay Rs. 20,000 every month without any tension. So, how to consolidate loans is a very good thing.

If you are stuck in a loan, you can consolidate it like this. It will make it easier for you to get a loan. I hope you liked today’s article. Share it with your friends. Do share it with those who want to get their loan consolidated. Those who are stuck in a loan and don’t know how to get rid of it. Do share it with them.