Debt Consolidation Calculator

Initially, your score may dip slightly due to the hard inquiry and new account. However, as you make timely payments on the consolidated loan and pay off revolving credit cards, your credit utilization improves, and your score typically rises within a few months.

Most unsecured debts can be consolidated, including credit card balances, personal loans, payday loans, and medical bills. Secured debts like home loans and auto loans are usually consolidated separately through refinancing rather than consolidation.

No. A balance transfer moves credit card debt to another card with a low introductory rate, usually for a fee. Debt consolidation uses a new loan to pay off all debts. Consolidation generally offers a fixed rate and term, while balance transfers are temporary.

Missing a payment can trigger late fees, penalty interest rates, and a negative mark on your credit report. If you anticipate difficulty, contact your lender immediately to discuss hardship options or restructuring before the missed payment.

Yes, but options may be limited and interest rates higher. Borrowers with low credit scores may need a secured consolidation loan backed by collateral such as a fixed deposit or property. Alternatively, you could work with a nonprofit credit counseling agency that can negotiate with creditors on your behalf for reduced interest rates without taking a new loan.

Secured debt consolidation requires collateral such as your home, car, or fixed deposit, which allows lenders to offer lower interest rates typically 10-14%. Unsecured consolidation does not require collateral but has higher rates of 14-24%. The trade-off is that secured loans put your asset at risk if you default, while unsecured loans are riskier for the lender and therefore more expensive.

Debt consolidation can affect your CIBIL score both positively and negatively in the short term. Initially, your score may drop 5-15 points due to the hard inquiry from the new loan application. However, once you consolidate, paying off multiple credit card balances lowers your credit utilization ratio significantly, which is a key factor in credit scoring. Over 3-6 months of on-time payments on the consolidation loan, your score typically rises above the pre-consolidation level. Closing old credit card accounts after consolidation can also impact your credit age, so keep older accounts open with zero balances.

Most major Indian banks and NBFCs offer debt consolidation loans, though they may market them as personal loans for debt consolidation rather than a separate product. SBI, HDFC Bank, ICICI Bank, Axis Bank, Bajaj Finserv, and Tata Capital all offer personal loans that can be used for consolidating credit card and other high-interest debts. Some banks also offer specific debt consolidation schemes. Interest rates typically range from 10.5% to 24% depending on your credit score, income, and relationship with the bank.

Yes, you can consolidate both personal loans and credit card debts into a single consolidation loan. However, the interest rate on the consolidation loan will depend on your overall credit profile. If your personal loan already has a relatively low rate (say 12%), and your credit card debt is at 36%, the blended savings will still be substantial. The consolidation loan should ideally have a rate lower than the weighted average of all your debts to make financial sense. Most lenders allow you to specify which debts you want to pay off with the consolidation amount.

The maximum amount for an unsecured debt consolidation loan in India typically ranges from 10-40 lakh, depending on your income, credit score, and relationship with the lender. For secured consolidation against property or fixed deposits, amounts can go up to 1 crore or more. Your maximum eligible amount is determined by your FOIR (Fixed Obligation to Income Ratio) and your repayment capacity. Most banks offer up to 20-30 times your monthly income for unsecured consolidation loans.