Can I Consolidate Loans From Different Banks Into One Loan? – A complete guide
Can I Consolidate Loans From Different Banks Into One Loan? – A complete guide
LoanLast updated: 19 August 2026
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Yes, one can easily consolidate their multiple loans from different banks into one loan in India. The concept of consolidating multiple loans into one is known as debt consolidation, and several banks in India provide personal loans for debt consolidation. The idea of consolidating loans has come up for these reasons. There are many people holding different credit cards, etc., from multiple banks, among which some have dues pending. This means one has multiple loan burdens on them, and a personal loan for debt consolidation eliminates this problem. Among which is LoansJagat, which provides the facility of debt consolidation services to the people by connecting them with approved and right lenders.
Key takeaways:
One can consolidate their multiple loans into one loan through the debt consolidation process.
The service of debt consolidation is provided by several banks or financial institutions in India.
Consolidating loans from different banks into one bank can lower the financial burden and give financial relief to some extent.
What is a debt consolidation loan?
A debt consolidation loan, covered under a personal loan, is provided by several financial institutions to people with multiple loans. The personal loan for debt consolidation is also offered to people with multiple loans with different banks.
A personal loan for debt consolidation usually provides a single loan against multiple loans, even those taken from multiple banks, at a certain interest rate.
These are the major features of the personal loan for debt consolidation:
Feature
Details
Affordable loan option
Helps pay off dues in an affordable manner without the hassle of managing or repaying multiple debts. Can be applied for online.
No collateral or security required
No collateral or guarantor is required to avail a personal loan for debt consolidation.
Hence, these are the major features of the personal loan for debt consolidation in India.
Which banks offer personal loans for debt consolidation?
There are several banks in India providing the facility of debt consolidation through personal loans for people with multiple debts.
Here are the banks giving personal loans for debt consolidation:
Name of Banks
Interest rates
Maximum loan amount
Axis
9.99%
₹5,000,000
Hence, these are the banks that provide personal loans for debt consolidation to people with multiple debt burdens.
What is the process to apply for a personal loan for debt consolidation?
Different banks provide different ways to apply for a personal loan for debt consolidation. This process can be done offline by visiting banks or online directly through websites.
Here are the steps to apply for a personal loan for debt consolidation through the website:
Banks
Process to apply
Axis
Begin by clicking ‘Apply Now’ on the personal loan page of Axis Bank.
Provide your personal details, such as mobile number and either date of birth or PAN.
Visit the HDFC website to apply for a personal loan.
Select your occupation.
Identify yourself using your mobile number and DOB/PAN.
Provide personal details.
Verify income.
Check the loan offer.
Quick processing & approval
After verification of the application and supporting documents, the approval process does not take much time.
Instant disbursal
The applied loan amount is immediately disbursed into the savings bank account after approval by the lender.
Repayment flexibility
Repayment tenure can be chosen up to 6 years. The loan amount can be sufficient to pay off debts and any additional amount required based on financial repayment capability.
HDFC
9.99%
₹5,000,000
IDFC First Bank
9.99%
₹1,500,000
ICICI Bank
9.99%
₹5,000,000
Kotak Mahindra Bank
10.99%
₹3,500,000
Enter the OTP received on your mobile phone.
Give consent to share your details for the purpose of verifying your documents.
Keep your last six months’ bank statements and salary slips ready for uploading.
Complete the eKYC and Video KYC process for your loan application to be complete.
HDFC
100% Digital Process
*T&C Apply
— Need money urgently?
Poonawalla Fincorp Personal Loan
Money in your account within 15 minutes
*T&C apply
Get up to
₹15 Lakhs
For salaried & self-employed
Serving 10,000+ Locations
No Hidden Charges
100% Digital Process
Apply Now→
Complete Aadhaar-based KYC.
Enjoy quick funds in your bank account.
IDFC First Bank
Visit the IDFC First Bank’s debt consolidation loan page and click on Apply Now.
Provide your basic details for registration.
Select your loan amount and EMI plan.
Link the account where funds should be credited.
Complete the video KYC by presenting your PAN card.
ICICI
Visit the personal loan page of ICICI Bank and click on Apply Now.
Enter your desired loan amount.
Provide your basic personal and work-related information.
Review your loan amount and tenure.
Confirm your loan application.
Get the loan disbursed.
Hence, this is how you can apply for a personal loan for debt consolidation if you have multiple debts with different banks.
What are the advantages of consolidating your debts?
There are several advantages to consolidating your debts into one loan in terms of financial stress, EMI burden, etc.
Here are the advantages of consolidating your debts:
Simpler Repayment = Consolidating multiple debts into a personal loan makes your repayment process simpler. You will only have one monthly payment to make.
Lower Interest Rates = A personal loan can offer lower interest rates compared to other high-interest debts. You can save on interest over time.
Fixed Repayment Schedule = Personal loans have fixed repayment schedules. Your monthly payments and loan tenure are pre-decided from the beginning.
Better Credit Score = Consolidating your debt allows you to make timely payments. It can improve your credit score.
Hence, these are the advantages of consolidating the multiple loans from different banks into one loan.
What are the disadvantages of consolidating your multiple debts?
There are several disadvantages in terms of hidden charges and more; one faces when they consolidate their debts into one loan.
Here are the disadvantages of consolidating multiple debts into one loan:
New Charges and Fees = Availing of a new personal loan may involve fees, including origination fees, prepayment penalties, or other charges.
Chances of Accumulating More Debt = There are chances you might end up accumulating new debt if you do not keep a check on your financial habits.
Impact on Credit Score = Taking out a personal loan can lead to an inquiry on your credit report. It might lower your credit score for a while.
Longer Repayment Term = A new loan with a larger amount means that your repayment tenure increases. It also means you end up paying more interest over time.
Hence, these are the major risks when you choose to consolidate your multiple debts from various banks into one loan.
Bottom line:
Debt consolidation is the concept of combining multiple loans, even from different banks, into one loan. Several banks in India provide personal loans for debt consolidation to lower the financial burden. Every bank provides a different interest rate for personal loans for debt consolidation to people. But there are certain disadvantages that come with it, like hidden charges, longer repayment terms, etc. Subsequently, a well-known company, like LoansJagat, also provides debt consolidation services to people by connecting them with the right lenders.
FAQs:
What is debt consolidation in finance?
Debt consolidation means the process of combining multiple debts into one form of loan at a favourable interest rate.
Does every bank in India provide the same interest rate on personal loans for debt consolidation?
No, every bank provides a different interest rate for the personal loan for debt consolidation in India.
Does every financial institution verify your credit score before providing you with a personal loan for debt consolidation?
Yes, credit score is one of the important parameters for the personal loan for debt consolidation, as it shows your financial standing.
What interest rate does HDFC provide for a personal loan for debt consolidation?
HDFC Bank provides a 9.99% interest rate per annum and ₹5,000,000 as the maximum loan limit.
What are the major disadvantages of consolidating debts?
Consolidation debts bring hidden charges, longer repayment tenure, and psychological effects of spending more money or taking out more loans, and can lower your credit score initially as a disadvantage.
Does debt consolidation lower your credit score permanently?
No, a credit score does not go down permanently. It drops initially due to enquiries made for your credit report. But as soon as you regularly pay EMIs on time every month, your credit score goes up.
Are these hidden charges applied to personal loans for debt consolidation the same for all the banks?
No, these hidden charges vary from bank to bank and depend on the bank's rules and regulations.
What is the maximum loan amount that Kotak Mahindra Bank offers for a personal loan for debt consolidation?
Kotak Mahindra Bank offers ₹3,500,000 for a personal loan for debt consolidation to people.
How does consolidating multiple debts lower the financial stress?
Consolidating debts into one loan means you need to pay for one instalment every month, no multiple interest rates on multiple loans, and no multiple dues to fear about missing them. This is how it lowers the financial stress.
Is it necessary to meet the eligibility criteria to get the personal loan for debt consolidation?
Yes, it is necessary to meet the eligibility criteria to get the personal loan for debt consolidation. These eligibility criteria vary from bank to bank.
