Compare your debts with one debt consolidation loan
Year-by-year repayment schedule
| Year | Principal paid | Interest paid | Balance at year end |
|---|
Reducing-balance method. Results are estimates for planning; the lender's Key Fact Statement is final.
A consolidation loan only helps if the new rate is lower than the weighted rate of the debts it replaces, or if one EMI is easier to manage. The calculator compares your current EMIs and interest with the single new loan.
Debt Consolidation Loan at a glance
The figures the calculator starts with come from these typical ranges. Change them to match the offer in front of you.
| Feature | What to expect |
|---|---|
| Typical loan amount | Roughly ₹1 lakh to ₹30 lakh, usually sized to your total outstanding dues |
| Tenure | Commonly 12 to 60 months, sometimes longer for larger balances |
| Indicative interest rate | Roughly 11% to 24% a year, depending on lender and profile |
| Processing fee | Commonly 1% to 3% of the amount, plus GST |
| Security / collateral | Usually none. Some lenders offer lower rates against property or gold |
| Typical time to disbursal | Often 2 to 7 working days, as old lenders must issue closure figures |
From our Debt Consolidation Loan guide. Ranges are indicative; your offer may differ.
Your current debts vs one consolidation loan
The example below uses three typical debts. Each is repaid at its current EMI until it is cleared; the table shows how long that takes and how much interest it costs.
| Debt | Balance | Rate | Current EMI | Time to clear | Interest left to pay |
|---|---|---|---|---|---|
| Credit card balance | ₹1,50,000 | 36% | ₹6,000 | 3 years 11 months | ₹1,31,397 |
| Personal loan | ₹2,00,000 | 15% | ₹9,000 | 2 years 3 months | ₹35,765 |
| Other loan or card | ₹1,50,000 | 18% | ₹7,500 | 2 years | ₹29,672 |
Together these debts carry a weighted rate of about 22.2%. A consolidation loan at 13% for 4 years replaces them with one EMI of ₹13,414, ₹9,086 lower than today, and total interest of ₹1,43,860. The longest debt would have taken 3 years 11 months to clear; the new loan takes 4 years.
Pick the tenure carefully
A lower EMI is not the same as a saving. If you stretch the new loan too long, you can end up paying more interest than you would have on the old debts. For ₹5 lakh at 13%:
| Tenure | New EMI | Total interest | Saving vs current debts, after fee |
|---|---|---|---|
| 3 years | ₹16,847 | ₹1,06,491 | ₹78,543 |
| 4 years | ₹13,414 | ₹1,43,860 | ₹41,175 |
| 5 years | ₹11,377 | ₹1,82,592 | ₹2,442 |
When consolidation stops making sense
The saving depends on getting a rate well below what you pay today. Over 4 years:
| New loan rate | New EMI | Total interest | Saving after fee |
|---|---|---|---|
| 11% | ₹12,923 | ₹1,20,293 | ₹64,742 |
| 13% | ₹13,414 | ₹1,43,860 | ₹41,175 |
| 19% | ₹14,950 | ₹2,17,603 | Costs ₹32,568 more |
| 24% | ₹16,301 | ₹2,82,444 | Costs ₹97,410 more |
If the saving turns negative, a cheaper route is to clear the most expensive debt first, usually the credit card, while paying the minimum on the rest.
Make the new EMI stick
Close the old card and loan accounts with the closure letters in hand, and do not run the cards up again, or you will end up carrying both the new EMI and fresh card debt.
Lenders usually keep all EMIs within about 40% to 50% of take-home pay. An EMI of ₹13,414 needs a net income of about ₹27,000 at the 50% limit, before any other EMIs.
How the comparison is calculated
For each existing debt, the calculator works out how many months your current EMI takes to clear the balance at its rate, and the interest paid in that time. For the new loan it uses the standard reducing-balance EMI formula. Credit card minimum payments are often lower than the EMI shown here; if you pay only the minimum, the card takes much longer to clear and the interest is far higher.
Before you apply for a debt consolidation loan
The calculator tells you what the loan costs. Before you apply, check whether you qualify, what documents lenders ask for and the mistakes borrowers most often make.
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Debt Consolidation Loan EMI: frequently asked questions
Is a debt consolidation loan a good idea?
Only if the new rate is lower than the weighted rate of your current debts, about 22.2% in this example, and you do not add new debt. Here it saves about ₹41,175 after fees over 4 years.
Will a consolidation loan lower my EMI?
Usually, because the new loan spreads the balance over a single tenure. Here the EMI moves from ₹22,500 to ₹13,414. A lower EMI over a much longer tenure can still cost more interest, so check the total.
Does consolidation hurt my credit score?
There may be a small dip from the new enquiry, but closing several accounts on time and paying one EMI reliably usually helps over time. Keep the closed cards at zero balance.
Can I include credit card dues in a consolidation loan?
Yes. Card balances are usually the most expensive debt, often around 36% to 42% a year, so moving them to a loan at a lower rate gives the biggest saving.
What fees should I expect?
A processing fee of around 1% to 3% plus GST, and possibly foreclosure charges on the old loans. Include both when you compare.
How long should the consolidation loan be?
As short as your budget allows. Aim for a tenure no longer than the longest debt you are replacing, so the total interest falls rather than rises.
Rates, fees and limits are indicative ranges for India, reviewed on the date above. KhatuLoans is not a lender and does not decide approval or pricing. Read our editorial policy and how we make money.
Official sources and further reading
These guides are written from Reserve Bank of India rules and official scheme pages. Rules, rates and scheme terms change, so check the current position on these sites and in your lender's Key Fact Statement before you apply.
- RBI: Key Facts Statement (KFS) for loans and advances. The Reserve Bank of India notification that tells lenders to give every borrower a plain-language statement of the full cost of a loan.
- RBI Complaint Management System. Where to take a complaint against a bank, NBFC or other regulated lender if the lender does not resolve it.
- RBI (Pre-payment Charges on Loans) Directions, 2025. Bars pre-payment charges on floating-rate loans taken by individuals for non-business purposes, for loans sanctioned or renewed from 1 January 2026.
- Reserve Bank - Integrated Ombudsman Scheme, 2021. The single complaint scheme for customers of banks, NBFCs and other RBI-regulated lenders.
- RBI: Free Annual Credit Report to Individuals. Credit bureaus must give you one free full credit report with score every calendar year.
- RBI Financial Education. Consumer guidance from the Reserve Bank of India on borrowing, fraud and your rights as a customer.
Edited by Hemant Kumar. Rates on this site are indicative ranges, not offers.