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Types of Consolidation Loans from Small Finance Banks in India
Everything you need to know about debt consolidation loans from Small Finance Banks
Small Finance Banks are niche banks that cater to customers who are not being served by major banks in a country. They offer regular banking services as well as some tailor-made solutions depending on the needs of their customers. When it comes to lending schemes, the loan amounts offered by small finance banks are usually lower as compared to major banks.
How do you differentiate a small finance bank from major banks?
Simple. These banks use the words “Small Finance Bank” in their name, as mandated by law. The 10 Small Finance Banks in India are:
- AU Small Finance Bank
- Capital Small Finance Bank
- Equitas Small Finance Bank
- ESAF Small Finance Bank
- Fincare Small Finance Bank
- Jana Small Finance Bank
- North East Small Finance Bank
- Suryoday Small Finance Bank
- Ujjivan Small Finance Bank
- Utkarsh Small Finance Bank
Some of the popular types of financial products offered by these small finance banks include deposit and lending schemes. In this post, we are going to discuss the consolidation schemes offered by small finance banks in India. Let’s get started.
Personal Loans
Easily the simplest, even though not always the best, option for consolidating debt, a personal loan helps customers reduce their debt burden. Small finance banks offer personal loans to salaried employees of government institutions, public sector units and reputed private organisations who need funds for their personal needs including paying off debt. This is a collateral-free loan.
Personal loans offered by a few small finance banks in India:
- AU Small Finance Bank Personal Loan
- Capital Small Finance Bank Personal Loan
- Ujjivan Small Finance Bank Personal Loan
- Utkarsh Small Finance Bank Personal Loan
Asset-backed Loans
Small finance banks also offer a range of asset-backed loans that customers can use for their different needs including debt consolidation. These loans can range from loans against gold and Fixed Deposits (FDs) to loans against property and rent receivables (for leased out property).
The loan amount depends on the types of the asset against which the loan is availed. As expected, loans against property fetch relatively higher loan amounts as compared to others. Please note that the Loan to Value (LTV) percentage may differ in each case.
Asset-backed loans offered by small finance banks in India:
- AU Small Finance Bank Gold Loan
- AU Small Finance Bank Loan Against Property
- Capital Small Finance Bank Gold Loan
- Capital Small Finance Bank Loan Against Property
- Capital Small Finance Bank Loan Against Rentals
- ESAF Small Finance Bank Loan Against Property
- Fincare Small Finance Bank Gold Loan
- Fincare Small Finance Bank Loan Against Property
- Jana Small Finance Bank Gold Loan
- Jana Small Finance Bank Loan Against Property
- North East Small Finance Bank Demand Loan (Loan Against Fixed Deposit)
- Suryoday Small Finance Bank Loan Against Property
- Utkarsh Small Finance Bank Loan Against Property
Top-up on Home Loans
If you are a home loan borrower from a small finance bank and need more funds for renovation / extension / repair of your home or other personal financial needs like debt consolidation, you can avail a top-up loan on your existing home loan. This is usually considered to be one of the best loan schemes for debt consolidation since separate collateral is not required to secure the loan, the interest rate is relatively low and the loan repayment period coincides with the existing home loan.
Top-up loans on homes loans offered by small finance banks in India:
- AU Small Finance Bank Home Loan Top-up
- Ujjivan Small Finance Bank Home Equity Loan
- Utkarsh Small Finance Bank Home Loan Plus
Balance Transfer Facility on Loans
If you are finding it difficult to pay the EMI of your loan or simply have found a loan scheme with better repayment terms such as interest rate, repayment period, etc. then you must consider Balance Transfer facility on loans and transfer them to a small finance bank. A balance transfer facility is usually offered on home loans.
Balance transfer facility to transfer your home loans from other banks to small finance banks in India:
- AU Small Finance Bank Home Loan Balance Transfer
- Fincare Small Finance Bank Home Loan Balance Transfer
- Jana Small Finance Bank Home Loan Balance Transfer
- Utkarsh Small Finance Bank Home Loan Balance Transfer
A Final Word
Any loan that helps you to reduce, sort out or pay off your debt can be considered as a debt consolidation scheme. If you want to know more about loan schemes offered by Indian banks that can be availed for debt consolidation purposes, you may check out our consolidation loans page. We cover the loan schemes that you can take from various banks in India to get out of debt.
