Debt Consolidation Loan: One EMI, Less Stress
Struggling with multiple EMIs and high interest rates? My Mudra’s Debt Consolidation Loan helps you merge all your debts into one easy EMI—fast, secure, and hassle-free.
Last Updated: 19 June 2025
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What is a Debt Consolidation Loan?
It is a financial tool that lets you combine all your existing debts. It can include credit card balances, personal loans, or other borrowings into a single, manageable loan. Instead of tracking multiple payments and interest rates, you pay just one EMI each month. This loan typically comes with a lower interest rate than credit cards or unsecured loans. It saves both your money and peace of mind.
How does it work?
Suppose you have three loans and two credit cards. Each has a different due date, interest rate, and EMI. With a debt consolidation loan, you borrow a lump sum to pay off all these debts. Now, you only have to repay the new loan, one EMI, one interest rate, one due date.
Key Features:
- Unsecured (no collateral required)
- Loan amounts up to ₹55 lakh (varies by lender)
- Repayment periods up to 96 months
- Quick approval and disbursal — often within 24 hours
- Transparent terms with no hidden charges
Benefits of Consolidating Debts
Why do so many people choose debt consolidation loans in India? Here’s what makes them a smart choice:
Lower Interest Rates:
Replace high-interest debts (like credit cards) with a single, lower-rate loan.
Simplified Finances:
One EMI, one due date — no more juggling multiple payments.
Reduced Stress:
Easier to manage, less risk of missed payments or late fees.
Improved Credit Score:
Paying off multiple debts can improve your credit utilisation ratio and boost your score (as long as you pay the new EMI on time).
Flexible Repayment:
Choose a tenure that fits your budget, from 12 to 84 months.
No Collateral Needed:
Most consolidation loans are unsecured, so you don’t risk your assets.
Quick Approval:
Many providers offer instant debt consolidation loans with approvals in minutes and funds in your account within a day.
Transparency:
No hidden charges, clear terms, and easy online tracking.
Eligibility for Debt Consolidation Loans
Wondering if you qualify? Here’s what most lenders look for:
- Age: 21 to 80 years (at loan maturity)
- Citizenship: Indian resident
- Employment: Salaried (public, private, or MNC), self-employed, or professional
- Minimum Income: Varies by city and lender; often starts at ₹30,000/month for metros
- Credit Score: 700+ for best rates, but flexible for some lenders
- Existing Debt: Should be able to demonstrate the ability to repay the new loan
- Stable Employment: Minimum 1–2 years in current job or business
Tip: Even if your credit score isn’t perfect, you may still qualify. My Mudra helps you find lenders with flexible criteria.
Documents Required for Instant Debt Consolidation Loans
Applying for a debt consolidation loan online is simple. Here’s what you’ll need:
- KYC Documents: PAN card, Aadhaar card, Voter ID, Driving License, or Passport
- Address Proof: Utility bill, passport, or rent agreement
- Income Proof: Latest salary slip or bank statement (last 3 months)
- Employment Proof: Employee ID or official email (for salaried)
- Financial Documents: Bank statement (last 6 months), ITR for self-employed
- Photograph: Passport-size photo
All documents can be uploaded online — no branch visits, no paperwork hassle — that’s the My Mudra promise.
Step-by-Step Application Process for Debt Consolidation Loan Online
How to apply for a debt consolidation loan with My Mudra? Here’s a quick guide:
- Check Your Credit Score: Use free tools to know your score. Higher scores get better rates.
- Calculate Your Total Debt: List all loans and credit cards you want to consolidate.
- Visit My Mudra: Go to our website and select “Debt Consolidation Loan Online.”
- Compare Offers: Enter your details and view personalised offers from top banks and NBFCs.
- Choose the Best Option: Compare interest rates, EMIs, and tenures.
- Apply Online: Fill in the application and upload your documents.
- Get Instant Approval: Many loans are approved within minutes.
- Disbursal: Funds are credited to your account, often within 24 hours of approval
- Pay Off Old Debts: Use the funds to clear your existing loans and credit cards.
- Repay Single EMI: Enjoy the simplicity of one EMI, one due date.
Pro Tip: Use My Mudra’s EMI calculator to plan your payments and choose the tenure that fits your budget.
Compare & Choose the Best Debt Consolidation Loan
Not all loans are created equal. At My Mudra, you can compare:
- Interest Rates: Find the cheapest debt consolidation loan for your needs.
- Tenure: Choose from short (12 months) to long (up to 84 months) repayment periods.
-
EMI Amount: Use our EMI calculator to see what fits your budget.
- Prepayment Options: Some lenders offer free prepayment after 6 EMIs.
- Flexi Loan Features: Some loans let you pay interest-only EMIs for the initial period.
- Providers: Choose from ICICI Bank, SBI, HDFC, Axis Bank, Bajaj Finserv, and more.
Example:
You have ₹5 lakh in credit card and personal loan debt at 24% interest. You get a debt consolidation loan at 12% for 5 years. Your EMI drops, and you save thousands in interest.
Debt Consolidation Loan Comparison Table
Below is a comparison of the best debt consolidation loans in India from leading banks and NBFCs. This table includes interest rates, tenures, processing fees, and special features/offers.
| Provider | Interest Rate (p.a.) | Tenure | Processing Fee | Special Offers/Features |
|---|---|---|---|---|
|
ICICI Bank |
10.85% – 16.25% | 12 – 72 months | Up to 2% | Quick digital approval, flexible part-prepayment |
|
HDFC Bank |
10.90% – 21 | 12 – 60 months | ₹6500 + GST | Instant approval for pre-approved customers |
|
Axis Bank |
10.40% – 22% | 12 – 84 months | Up to 2% | Digital process, quick disbursal |
|
Bajaj Finserv |
10% – 31% | 12 – 96 months | Up to 4% | Flexi loan facility, interest-only EMI for initial tenure |
|
Kotak Mahindra Bank |
10.99% onwards | 12 – 72 months | Up to 5% | Zero prepayment charges after 12 months |
|
IDFC First Bank |
10% onwards | 12 – 84 months | Up to 2% | Flexible repayment options |
Note:
- Actual rates and offers may vary based on your credit score, income, and lender policy.
- Always read the fine print for prepayment/foreclosure charges and eligibility criteria.
- Use My Mudra’s loan comparison feature to get real-time personalised offers
Why Choose My Mudra for Your Debt Consolidation Loan?
When you’re looking to get a debt consolidation loan, trust and speed matter. Here’s why My Mudra stands out:
- One Platform: Compare offers from top lenders like ICICI Bank, SBI, Axis Bank, HDFC, and Bajaj Finserv in one place.
- Instant Approvals: Our streamlined digital process means you can get a decision within minutes.
- Personalised Offers: We match you with the best debt consolidation loans based on your profile and needs.
- No Collateral: All our partner loans are unsecured.
- Transparent Process: No hidden fees. All terms are explained upfront.
- Expert Support: Our advisors guide you from application to disbursal.
- Flexible Tenures: Choose repayment terms that fit your cash flow.
- Secure & Private: Your data is protected with the highest security standards.
Happy Customers Who Chose Our Debt Consolidation Loan
Rohit, Mumbai:
Verified CustomerI had three credit cards and two personal loans. The EMIs were eating up my salary. I applied for a debt consolidation loan online with My Mudra. The process was quick, and I got approval in 10 minutes. Now I pay just one EMI every month, and my interest rate is much lower. I feel in control again.
Pooja, Bangalore
Verified CustomerManaging different due dates was stressful. I used My Mudra to compare the best debt consolidation loans in India. I chose the Bajaj Finserv debt consolidation loan for its flexible tenure. The funds came in a day, and I cleared all my old debts. My CIBIL score has improved since then!
Neha, Delhi
Verified CustomerI owed Rs. 15 lakhs on various loans, with interest rates ranging from 18% to 25%. I decided to consolidate my debts and applied for a debt consolidation loan at a 10% rate through My Mudra. After approval, I paid off all my existing loans. Now, I have only one EMI to manage, and I’m saving a lot of interest. It’s made my financial life so much simpler.
Too Many EMIs? Merge Them with a Debt Consolidation Loan Online
Managing multiple debts doesn’t have to be stressful. At My Mudra, we help you apply for a debt consolidation loan online — quickly, securely, digitally, and with expert support every step of the way. Compare the best debt consolidation loans in India, pick the right offer, and start your journey to a debt-free future.
Ready to simplify your finances? Apply now with My Mudra and regain control of your money — one EMI at a time.
Debt Consolidation Loan FAQs
Are debt consolidation loans good for my credit score?
Yes, if you repay on time. Consolidating and paying off multiple debts can improve your credit utilisation ratio and boost your score. But missing EMIs on the new loan can hurt your score.
How to apply for a debt consolidation loan online?
Visit My Mudra, compare offers, fill out the application, upload documents, and get instant approval. Funds are usually disbursed within 24 hours.
What is the cheapest debt consolidation loan?
The cheapest loan depends on your profile and the lender’s rates. My Mudra helps you compare and find the lowest interest rate for your needs.
Can I prepay my debt consolidation loan?
Yes. Many lenders allow free prepayment after a few EMIs. Some may charge a small fee — always check the terms.
What is the ICICI Bank debt consolidation loan?
ICICI Bank offers personal loans up to ₹25 lakh for debt consolidation with flexible tenure and quick approval.