Personal loans have been a lifesaver for millions of people over the years. They have helped people in emergencies and sudden expenses, and in the current day, they do much more than just that. From funding events like weddings to paying off education expenses, personal loans solve all your financial problems. However, high-cost debt can get stressful for any person. It can take a toll on your finances and affect your financial goals. Multiple debts may sometimes even compel you to dive into your savings to clear the existing debts. Therefore, another option that might be a lifesaver for you is a low-cost, long-term personal loan for debt consolidation.

What is Debt Consolidation?

Debt consolidation uses a new loan to pay off previous debts and liabilities. Here, you can combine multiple high-interest debts into one and save more money, pay lesser EMIs, and manage your finances much better.

Importance of Debt Consolidation

Having debts can be stressful. But managing finances can be even more stressful, especially while keeping track of multiple payments like managing work, household, and other personal expenses. In such scenarios, debt consolidation is the solution you should opt for, as it allows you to merge your loans and make the most of them. Doing so will give you a single loan and a single EMI, which will help you focus on one payment rather than multiple payments.

Advantages of a Personal Loan for Debt Consolidation

Are you looking to achieve a healthy financial status? Debt consolidation is the way! It is one of the smartest moves towards a healthy financial status and offers many benefits. Here are some of the advantages of a personal loan for debt consolidation.

Timely Approvals

Most banks/ lenders/ financial institutions quickly approve personal loan applications after verifying and approving your application and other supporting documents.

Online Application

Most banks/ lenders/ financial institutions allow borrowers to apply for personal loans online through their official websites. This makes the application process more manageable and allows you to compare personal loans offered by other banks/lenders.

Quick Disbursal

Once your lender approves your application, the loan amount will quickly disburse into your savings bank account.


Repayment is flexible with a personal loan. You can choose a repayment term between 1 year and 5 years as per your convenience.

Competitive Interest Rates

At Piramal Finance, we offer you repayment options as per your preference. The shorter the tenure, the bigger the EMI, and vice versa. You can opt for a tenure as short as 1 year or as long as 5 years.

Documents Required for a Personal Loan for Debt Consolidation

  • 1.
    Photo ID with age proof: Voter’s ID, PAN card, driving license, or passport copy.
  • 2.
    Filled and signed application form.
  • 3.
    Coloured photograph.
  • 4.
    Residence proof: Ration card, rental agreement, telephone bill, electricity bill, driving license, passport copy, or bank passbook or bank statement.
  • 5.
    Bank statement for the last 6 months.
  • 6.
    Additional documents for salaried applicants: Salary slips of the last 3 months, Form 16, or Income Tax Returns.
  • 7.
    Additional documents for non-salaried or self-employed applicants: Last 3 years Income Tax Returns, income computation, last 3 years Balance Sheet, and Profit and Loss Account.
Many banks/ lenders/ financial institutions offer personal loans for debt consolidation. These lenders often charge a reasonable rate of interest and provide flexible terms that make it easy for the borrower to repay the sum. Check your loan eligibility and credit score before you approach any bank/ financial institution for a personal loan for debt consolidation.