Frequently Asked Questions (FAQ)
Frequently Asked Questions (FAQ)
1.What is Debt Consolidation?
Debt consolidation is a financial strategy where you combine multiple loans, credit card dues, or EMI obligations into one single loan.
The main goal is to simplify repayment and sometimes reduce the overall interest rate.
2. How does debt consolidation work?
You take one new loan to pay off all your existing high-interest loans.
This way, instead of managing multiple EMIs, you only need to pay one EMI every month.
Example:
₹50,000 Credit Card Balance (36% interest)
₹1,00,000 Personal Loan (18% interest)
₹30,000 App-Based Loan (30% interest)
Total: ₹1,80,000
You can consolidate these into one loan of ₹1,80,000 at a lower interest rate (12–15%), making repayment easier and more affordable.
3. What are the benefits of debt consolidation?
| Benefit | Description |
|---|---|
| 🔁 Single EMI | Pay one EMI instead of multiple payments |
| 📉 Lower Interest Rate | Convert high-interest debts into one low-interest loan |
| 🧠 Easy to Manage | Reduce stress and simplify repayment tracking |
| 💳 Improves Credit Score | Timely EMI payments can boost your credit score |
| 📆 Flexible Tenure | Choose repayment tenure between 12–60 months |
4. Who should consider debt consolidation?
People with multiple credit card dues
Those with app-based instant loans
Anyone stressed about paying multiple EMIs every month
People who want to improve financial discipline
Individuals whose credit score is dropping due to missed payments
5. What should I do if my loan doesn’t get approved?
Don’t worry!
You can explore other loan lending platforms within the app to increase your chances of getting approved.
6. Does applying for a loan affect my credit score?
No.
When you apply for a loan through 1LONE, it’s considered a soft inquiry, which does not harm your credit score.
We prioritize transparency so you can explore options without any negative impact.
7. I applied for a loan twice but haven’t received a response. What should I do?
If you haven’t received any response, please contact the app’s customer support team.
They will help you check your application status and guide you further.
8. How does the app help me?
Tracks your existing loans
Monitors your credit score
Provides debt consolidation offers
Sends EMI reminders and repayment tracking updates
Gives personalized financial tips
9. Can I get a loan with a low credit score?
Yes!
Even if your credit score is below 650, we have partner NBFCs and lenders who can provide suitable loan options.
10. Do I need to check eligibility for a new loan?
Yes.
Your credit profile, income, and existing obligations will be evaluated to determine eligibility for the consolidated loan.
11. What if my credit score is below 650?
If your credit score is below 650, a pop-up will appear in the app showing steps to improve your credit score, so you can increase your chances of loan approval.
12. What are the key advantages of loan consolidation?
Repay all debts with one single EMI
Save money with a lower interest rate
Improve and manage credit score better
Avoid late fees and multiple payment reminders
Reduce financial stress and simplify your life