Debt Consolidation
Combine multiple loans into one simpler, lower EMI.
Consolidate multiple high-cost loans and credit-card dues into a single, more affordable facility — simplifying repayment and potentially lowering your overall cost.
Interest rates and terms are indicative and subject to lender approval.
Debt Consolidation
Key features
- One EMI instead of many
- Potentially lower interest
- Simplified repayment
- Improves cash flow
Eligibility
- Multiple existing obligations
- Repayment capacity
- Acceptable credit profile
Documents
- Existing loan statements
- KYC & income proof
- Bank statements
- Credit report
In depth
Understanding Debt Consolidation
The process of taking out a new, single loan to pay off multiple existing liabilities or debts.
- The Mechanism
- Consolidating Loan = Sum of all existing debts. Multiple high-interest EMIs are replaced by one lower-interest EMI.
- Key Components
- Existing loan balances, Prepayment penalties, and New loan interest rate.
- What the Results Mean
- Simplifies personal finances by turning multiple due dates into a single monthly payment.
- Smart management
- After consolidating, strictly avoid accumulating new debt to prevent falling into a deeper debt trap.
Regulatory source
Subject to the RBI's Fair Practices Code regarding transparent lending and responsible credit behavior.