Consolidate Multiple Debts With an Affordable Loan
Managing multiple loan repayments every month can make it difficult to keep track of your finances. Poonawalla Fincorp’s debt consolidation loan allows you to consolidate multiple debts by combining multiple EMIs into one single loan, resulting in a single monthly EMI.
The amount for a short-term debt consolidation loan ranges from ₹50,000 to ₹5 Lakh, with interest rates starting as low as 16% p.a. Completing the online application for a Personal Loan for debt consolidation is easy, as it involves minimal documentation and quick processing. Check your eligibility and apply now to clear all your existing debts in one go.
How a Debt Consolidation Loan Can Help
Many borrowers manage credit card dues, personal loans, consumer durable loans, or two-wheeler loans at the same time. Tracking multiple repayment dates and EMIs can become challenging. A debt consolidation loan combines eligible existing debts into a single loan, simplifying repayments to one EMI and one repayment schedule.
Debt Consolidation Loan EMI Calculator
Before you apply for a debt consolidation loan, it is beneficial to get an accurate estimate of the final EMI amount for informed decision-making. Our Personal Loan EMI Calculator helps with EMI calculations based on three factors listed below:
- Loan Amount
- Interest Rate
- Repayment Tenure
Use this calculator to tweak each of these variables and find out the monthly payments and total interest costs. Check your EMI now!
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Tap the Apply Now button to initiate your application.
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Enter your DOB, PAN card number, monthly income, KYC details and residential details.
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The loan amount will be credited to your bank account instantly.
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To apply for a debt consolidation loan, applicants must meet the eligibility requirements below:
| Parameter | Details |
|---|---|
| Age | Between 25 and 55 years |
| Citizenship | Indian |
| Employment | Salaried and Self-Employed, Full-time job with a government entity, public/private limited company, LLP, educational institution, or a company approved by Poonawalla Fincorp. |
| Annual Income | Minimum annual household income (declared) must be ₹3 Lakh. |
| KYC Documents | PAN card and Aadhaar card for identity and address verification. |
Poonawalla Fincorp offers a short-term Personal Loan for debt consolidation with competitive interest rates and transparent charges.
| Parameter | Details |
|---|---|
| Interest Rate | 16%* p.a. onwards |
| Loan Amount | ₹50,000 to ₹5 Lakh |
| Loan Processing Fees | Up to 5% Plus Applicable Taxes |
| Lowest EMI per Month | ₹1,962 for 36 months |
| Loan Tenure | 12-36 months |
| Prepayment / Foreclosure Charges | 1. If Foreclosure or Prepayment is done from own funds of the Borrower – Nil charges 2. If Foreclosure or Prepayment is done by balance transfer from another bank/financial institution – 4% on amount being prepaid plus applicable Taxes |
| Default Charges | 24% p.a. |
| Repayment Instrument Dishonour Charges | ₹500 per bounce plus applicable taxes |
| Stamp Duty | At actuals (as per state) |
| Duplicate No Objection Certificate | ₹500/- Plus Applicable Taxes |
| Cash Collection/Cash Handling Charges Applicable for cash collection done via Lender’s employees/personnel as well as cash deposited in Lender’s branch by the Borrower or any of their representatives, applicable on prospective basis. |
₹500/- Plus Applicable Taxes per instance |
| Hidden Charges | Nil |
Default Charges: Penalty will be charged for nonpayment of EMI amount and for non-compliance of material terms and conditions, as more particularly specified at Default Charges.pdf
*T&C Apply
A debt consolidation loan helps simplify your financial commitments by combining multiple eligible debts into a single loan. This can make repayments easier to manage and improve overall financial planning.
- One EMI Instead of Multiple Payments: Replace multiple loan and credit repayment obligations with a single monthly EMI, making debt management simpler and more convenient.
- Simplified Financial Management: Track just one repayment date and one outstanding loan amount rather than managing multiple lenders and payment schedules.
- Better Budget Planning: A single monthly repayment can provide greater visibility into your finances and help you plan your monthly expenses more effectively.
- Reduced Risk of Missing Due Dates: Managing one EMI instead of several repayments can help reduce the chances of overlooking payment deadlines.
- Pay Off Existing Debts Conveniently: Use the loan amount to clear eligible outstanding obligations such as credit card dues, personal loans, consumer durable loans, and other debts.
- Flexible Repayment Options: Choose from available repayment tenures to find an EMI structure that aligns with your financial requirements.
- Greater Control Over Your Finances: Consolidating debts into a single repayment obligation can help you stay organised and maintain better oversight of your borrowing commitments.
- Access to Higher Loan Amounts: Loan amounts ranging from ₹50,000 to ₹5 Lakh can help you consolidate multiple eligible debt obligations into one loan.
An instant Personal Loan for consolidating debt allows many different borrowers to simplify their overall repayment process and gain greater control over their finances.
- Salaried individuals with a stable monthly income and full-time employment.
- Salaried professionals such as doctors, chartered accountants, and company secretaries are subject to the lender’s eligibility criteria.
- Applicants who meet the age, income, credit score, and documentation requirements.
A Personal Loan for debt consolidation is ideal for anyone seeking to simplify their borrowing journey.
Before you apply for a debt consolidation loan, consider the following tips:
- Prepare the necessary documents before beginning the application process.
- A CIBIL score of 750 or more can increase your chances of approval, so check your credit score.
- Before applying, check your eligibility against the lender's requirements.
- To prevent delays, fill out the application form completely and accurately.
- Avoid applying for several loans at once, as this could lower your credit score.
A borrower may have multiple debts with separate repayment schedules or interest rates, making their debt repayment difficult.
| Existing Debt | Outstanding Amount | Remaining Tenure | Monthly EMI |
|---|---|---|---|
| Credit Card Dues | ₹1,20,000 | 24 months | ₹6,000 |
| Personal Loan | ₹2,00,000 | 36 months | ₹7,000 |
| Consumer Durable Loan | ₹80,000 | 18 months | ₹4,000 |
| Two-Wheeler Loan | ₹1,00,000 | 30 months | ₹3,500 |
| Total | ₹5,00,000 | - | ₹20,500 |
When a borrower chooses a debt consolidation loan of ₹5 Lakh to pay off all existing obligations and replace multiple repayments with a single EMI:
| Debt Consolidation Loan | Loan Amount | Tenure | Monthly EMI* |
|---|---|---|---|
| Single Consolidated Loan | ₹5,00,000 | 36 months | ₹17,579 |
Below is a comparison of the loan terms before and after the debt consolidation loan.
| Repayment Comparison | Before Consolidation | After Consolidation |
|---|---|---|
| Number of EMIs | 4 | 1 |
| Total Monthly EMI | ₹20,500 | ₹17,579* |
| Repayment Schedules | Multiple | One |
| Due Dates to Track | Multiple | One |
*Illustrative example only.
In this example, the borrower replaces four separate repayments with a single loan, simplifying monthly debt management and improving repayment visibility.
Caution: The reduced EMI in this example is achieved through a longer repayment tenure. The actual EMI, loan tenure, interest rate, and total repayment amount depend on the lender’s assessment and the applicant’s eligibility. While a debt consolidation loan can simplify repayments by combining multiple debts into a single loan, it may not necessarily reduce the total cost of borrowing. Borrowers should carefully evaluate the overall interest payable, fees, and loan tenure before making a decision.
Happy Customers, Happy Us
Throughout my loan journey, the Poonawalla Fincorp team showcased exceptional dedication, in-depth product knowledge, and a truly customer-centric approach. At every stage, they guided me with patience and clarity, making the entire process seamless, transparent, and timely. Their proactive communication and unwavering willingness to go the extra mile are a testament to the organization’s high standards of service excellence. Such professionalism not only fosters strong customer trust but also reinforces Poonawalla Fincorp’s reputation as a leading, customer-focused financial institution. I extend my heartfelt thanks to the entire team for their commendable efforts and wish them continued success in all their endeavors.
I am incredibly grateful for the outstanding support I received throughout my loan process. The guidance provided made every step feel manageable and stress-free. What stood out most was the humility and genuine willingness to help at every stage, qualities that made a significant difference in my experience. Without this support, the journey would have been far more challenging. I truly appreciate the dedication and helpful nature that was consistently demonstrated. The efforts put forth were invaluable, and I feel fortunate to have worked with someone so committed and supportive.
It was really great working with Poonawalla Fincorp. Thanks to the support and coordination by the team. I was able to get a significant portion of my requirements despite having a bit of a mess in my financial records. The loan processing and disbursement process at Poonawalla Fincorp was super smooth. They were incredibly cooperative and helpful. I’m looking forward to building a healthy relationship with them in the future. Thank you.
Poonawalla Fincorp’s Pre-owned Car Loan made the entire financing process effortless. The loan approval was quick, and the minimal documentation made it even more convenient. Within just a couple of days, the funds were disbursed, allowing me to purchase a well-maintained pre-owned vehicle without any hassle. The repayment options were flexible, and the entire experience was seamless. Thanks to Poonawalla Fincorp, I could get my car without any financial strain. Highly recommended!
Securing a loan to purchase a commercial property with rental income was crucial for my business. Having previously worked with Poonawalla Fincorp, I was confident in their services. The process was incredibly smooth and transparent. The quick disbursement and excellent post-sales support made the entire experience stress-free. Thanks to Poonawalla Fincorp, I now own a prime commercial property in Mumbai, which has significantly boosted my business. Their quick turnaround time and excellent post-sales support made all the difference. I wholeheartedly recommend them to anyone in need.
I had a great experience with Poonawalla Fincorp’s Pre-owned Car Loan. The offered loan amount was as per my expectations, and the entire process was smooth and hassle-free. The documentation was minimal, and the loan was disbursed in just two days! What stood out was the flexibility—repayment was easy, and the EMI structure was well-planned. The loan approval process was straightforward, making it convenient to get the car I wanted without any delays. Overall, the service was excellent, and I highly recommend Poonawalla Fincorp to anyone looking for an easy and quick loan process!
A friend in need, is a friend indeed. Poonawalla fincorp has been like one of those friends for me, who has supported me in my journey. With no hidden charges and no prepayment charges, the company has provided me with the adequate funds I needed for me professional practice. From the loan application process to the disbursal of funds, I did not face any problems. My experience was hassle-free and smooth. Not just me, all my fellow professionals and friends have had a wonderful experience with Poonawalla Fincorp’s Professional Loan.
I am practicing Chartered Accountant (CA) based out of Hubli. There were working capital issues that i was facing like upgrading my firm’s overall infrastructure, hiring well-qualified staff and digitization. Poonawalla fincorp hab been of great support when it comes to funding these requirements. I’ve got one of the best interest rates available in the market, my documentation process was fast & hassle-free. and the digital application process made it very simple to get a Professional Loan as a CA. I recommend to CAs to consider Poonawalla Fincorp for their working capital or any other funding requirements.
I run a chain of farmacy stores with 5 branches in pune. With the growing polpularity of home delivery, my customers were expecting the same from me as well. However, the extra capital requirement made it difficulf for me to hire delivery persons. With Poonawalla fincorp’s Business loan, I am now able to compete with online pharmacy retailers, manage working capital and upgrade my system. My customers have grown 50-60%. The loan applicatipn process is digital, simple and speedy. I was delighted to get my loan amount disbursed quickly, allowing me to upgrade my operationg seamlessly.
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Frequently Asked Questions
Debt consolidation combines multiple debts into a single debt consolidation loan, making repayments easier to manage. A loan balance transfer involves transferring the loan from one lender to another, usually to benefit from interest rates, terms and features.
If your existing loan already has a lower interest rate than the consolidation loan, consolidating may not be the most cost-effective option. Before deciding, compare the total repayment amount, EMI, loan tenure, and any applicable processing or prepayment charges. A consolidation loan is beneficial only if it helps reduce your overall repayment burden or makes managing multiple loans easier.
Debt consolidation may help improve your debt-to-income ratio if it reduces your monthly repayment burden. The impact depends on factors such as your total debt, income, and loan terms.
After taking a Debt Consolidation Loan, avoid missing repayments or taking on unnecessary new debt. Effective debt management and disciplined spending can help you maximise the benefits of debt consolidation and maintain better control over your finances.
A debt consolidation loan is a Personal Loan that combines multiple debts into one EMI at a lower interest rate.
With debt consolidation, you take a new loan and use the funds to repay your existing debts. Once the previous debts are cleared, you make a single monthly payment towards the new loan according to its terms and tenure.
Poonawalla Fincorp maintains transparent loan terms with no hidden charges. However, applicable fees such as processing charges and taxes may apply as per the loan agreement.
Yes, a Short-term Personal Loan can help manage multiple debts by combining obligations into a single loan with one monthly repayment.
You should consider a debt consolidation loan if you have multiple EMIs or credit card debt.
It might lower your monthly payment, depending on your loan amount, the time taken for repayment and the interest being charged.
Yes, after you have consolidated your eligible existing debts into one loan, you need to pay for only one EMI.
Yes, subject to the lender’s policies, you may be able to combine eligible credit card debt and personal loans into a single loan.
The time required varies based on the lending institution you choose, your creditworthiness and whether or not all supporting documentation has been provided.
If you make your payments on time, it helps improve your credit score. If you fail to make payments on time, your credit score may be negatively affected.
Yes. Eligible borrowers can select from available tenure options offered by the lender.
No, because instant personal loans for debt consolidation can be obtained without providing any assets for security.