Debt Consolidation Loan and applying for loan assistance online

Debt consolidation loan is a form of debt refinancing that entails taking out one loan to pay off many others through Pinjaman Peribadi (lending institution / company). This, most commonly refers to a personal based financial process of individuals who tend toaddress high consumer debt systems but occasionally refers also to acountry’s fiscal approach to corporate personal debt or Government debt. The process can secure a lower overall interest rate to the entire debt load and provide the convenience of servicing only one loan, which proves beneficial  for the people.

General perspective

Debt generally refers to money owed by one party, which is called the debtor, to a second party, referred to as  the creditor. It is usually subject to repayments of a combination of principal and interest. Interest is the fee charged by the creditor whose money it originally is,to the debtor, who has borrowed the money, generally calculated as a percentage of the principal sum per year known as an interest rate and generally paid periodically atregular intervals, such as monthly. Debt can be secured with collateral or unsecured.


Although there is some amount of variation from country to country and even in regions within various countries, consumer debt is primarily made up of home loans, credit card debt and car loans. Household debt is the consumer debt of the adults in the household plus the mortgage applied, if applicable. In many countries, namely  the United States and the United Kingdom, student loans can make up  significant portion of debt but are usually regulated differently regarded to  other debt. The overall debt can reach such a point where a debtor might actually be in danger of bankruptcy, insolvency, or other fiscal emergency. Options that are then  available to overburdened debtors include credit counseling and personal bankruptcy.

Other consumer options include:

  • Debt settlement, where an individual’s debt is negotiated to a lesser interest rate or principal with the creditor’sagreement to lessen the overall burden;
  • Debt relief, in which part or whole of an individual debt are forgiven; and
  • Debt consolidation, where the individual is able to pay off the current debts by taking out a new loan.

Sometimes the solution includes some of each of these options.


The bulk of the consumer debt, especially that with a high interest is mostly repaid by a new loan. Most debt consolidation loans are offered fromPinjamanPeribadi (lending institutions/ company) and secured as a second mortgage or a home equity line of credit. These require the individual to put up his or her home as collateral and the loan to be less than the equity available.

The overall lower interest rate proves to be an advantage of the debt consolidation loan offered to  consumers. Lenders offer fixed costs to process payments and repayment can spread out over a larger period. However, such consolidation loans incurthe costs: fees, interest, and “points” where one point equals to one percent of the amount borrowed. In some countries, these loans are capable ofproviding certain tax advantages. Because they are secured, a lender might attempt to seize property if the borrower goes into default.

Personal loans comprise yet another form of debt consolidation loan. Individuals can issue debtors a personal loan that satisfies the outstanding debt amount and creates a new one on their own terms. These loans, often unsecured, are based on the personal relationship between the 2 rather than collateral.

Debt Consolidation Loan – Eligibility

  1. AGE – The borrower’s minimum age should be 21 years old and maximum 55 years old.
  2. INCOME – The borrower’s minimum net monthly income should be over Rs 12,000.
  3. BANK DEFAULT – He must have no record of loan /credit card defaults after Jan 2012.
  4. STAY TYPE – The borrower should be staying with family or friends.
  5. LOCATIONS – he must be a resident of Mumbai, Pune, Ahmedabad, Nagpur or Bangalore.
  6. EMPLOYMENT TYPE – Only salaried individuals are eligible to apply for a loan.