Debt consolidation involves taking a single loan (usually secured, like LAP) to pay off multiple high-interest debts — credit card balances, personal loans, and other unsecured obligations. By replacing 15-36% interest debts with a single 9-14% secured loan, borrowers significantly reduce total interest burden and simplify repayment to one EMI.
LAP is the most common vehicle for debt consolidation in India — property owners can borrow at secured loan rates to clear expensive unsecured debts. The strategy works best when the consolidated rate is significantly lower than existing rates and the borrower commits to avoiding new high-interest debt.
Debt consolidation can save substantial interest by replacing expensive debt with cheaper borrowing. It also simplifies financial management with a single EMI payment.
Nihal Fintech helps clients consolidate expensive debts using LAP or other secured products, often reducing overall interest costs by 50% or more while simplifying their financial obligations.
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