What is Debt Consolidation Loan?
Debt Consolidation Loan is a loan taken to pay off all your existing loans. All existing loans will be consolidated into a single loan that is more favourable. The new loan might come at a lower rate of interest, flexible tenure terms and better benefits. Consumers usually use debt consolidation loans as a tool to get out of debt.
Advantages of availing a Debt Consolidation Loan
There are several advantages to debt consolidation loans. Listed below are some of the advantages of opting for a debt consolidation loan.
- Single payment - Debt consolidation means taking up a single loan to pay off several loans. When you opt for a debt consolidation loan, you will be making only one loan payment so there won’t be the hassle of making several payments on different loans.
- Lower rate of interest - Opting for a debt consolidation loan will get you a better and lower rate of interest with your new loan thus saving on your monthly payments on the loan.
- Less stress - Debt is one of the main reasons for stress. A debt consolidation loan will take the burden off of your shoulders as all the loans are consolidated into one single loan.
- Credit score - Having several loans might result in late payments on at least a few of the loans. Consolidating all your debt into one single loan and staying on top of the payment will improve your credit score.
Popular Debt Consolidation Loans in UAE
Listed below are some of the most popular debt consolidation loans in UAE.
Mashreq Bank Debt Consolidation Loan
Mashreq Bank offers Debt Consolidation loan to its customers who want to take advantage of making a single payment for all their existing loans. The loan is available for expats residing in UAE. The loan offers high loan amounts up to a maximum of AED 1 million, competitive rate of interest, lower monthly repayments and flexible repayment tenure of 48 months.
NBAD Debt Assistance Loan
NBAD debt assistance loan will ensure that all your outstanding loans are consolidated into a single loan. This loan option is designed exclusively for UAE nationals. The loan option offers flexible repayment terms up to 144 months, variable interest rates and high loan amounts.
ADIB Debt Consolidation Loan
ADIB debt settlement loan or debt consolidation loan is one of the loan options that allow its customer to take advantage of consolidating all their loans into one single loan. The loan offers job loss protection, free approved ADIB Visa cashback card and two payment holidays every year. One can avail lower rates on interest and flexible tenure terms with the plan.