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South Indian Bank has launched a new debt consolidation loan called SIB Power CONSOL, in which all loans like home, car, education and personal are combined into one low interest EMI. This is a property-based loan, whose tenure is up to 15 years and the processing fee is zero.
New Delhi. Many people today are repaying various types of loans – home loan, car loan, education loan, personal loan etc. It becomes quite difficult to pay multiple EMIs on different dates every month. To ease this problem, Debt Consolidation Scheme has emerged as a better way. In this, a new, low interest loan is taken by combining all your old loans, due to which you have to pay only one EMI.
In this direction, South Indian Bank (SIB) has launched a new loan product SIB Power CONSOL. This scheme allows customers to consolidate all their home, car, education, personal and other consumer loans into one low-interest loan. The bank works like a debt counselor, so that customers can easily plan their payments.
Tenure of consolidation loan is maximum 15 years
This is a property-based loan, in which customers can take a loan up to 75% of its value by mortgaging their house or commercial property. Customers can take loans ranging from Rs 10 lakh to Rs 3 crore. The tenure of consolidation loan can be up to a maximum of 15 years and the tenure of home loan balance transfer can be up to 30 years.
Processing fee zero
The most important thing is that the processing fee is zero. The interest rate on home loan consolidation starts from 7.35% and on other loans from 8.5%. Due to having a single EMI, customers do not have to worry about bank balance, dates and different payments. Additionally, combining multiple unsecured loans into one secured loan also improves your credit score over time.
Always calculate total interest
However, before opting for consolidation, keep in mind that some loan closures may attract a foreclosure charge of 2-4%. Also, increasing the EMI for a longer period can also increase the total interest. Therefore, always make the comparison on the basis of total interest burden and not just on the basis of lower EMI.
