Four payments, four due dates, four reminders, and a salary that never seems to stretch to all of them. Combining your loans into one EMI can bring order back, but only if you do it in the right sequence.
Short answer: To combine loans into one EMI, list every debt with its cost, compare consolidation offers using the APR and total amount payable in each KFS, and borrow enough to close every expensive debt. Then repay and close each account the same week, collect closure letters, and check your CIBIL report 30–45 days later.
Step 1: List every debt
Write down everything you owe, including small app loans and buy-now-pay-later bills. For each, note:
- outstanding amount
- interest rate or APR (from the statement or KFS)
- monthly payment
- months left
- foreclosure or prepayment charge (from the loan agreement)
Here is an example. Meera, 28, Hyderabad, takes home ₹62,000 a month.
| Debt | Outstanding | Rate / APR (example) | Monthly payment |
|---|---|---|---|
| Credit card (revolving, about 3.5% a month) | ₹80,000 | about 42% a year | ₹6,000 |
| Personal loan (20 months left) | ₹1,20,000 | 15% | ₹6,818 |
| App loan A (3 months left) | ₹25,000 | 90% APR | ₹9,613 |
| App loan B (3 months left) | ₹20,000 | 75% APR | ₹7,517 |
| Total | ₹2,45,000 | ₹29,948 |
Meera is paying 48% of her take-home pay towards debt (₹29,948 ÷ ₹62,000).
Step 2: Work out your weighted average cost
The weighted average tells you what your debt costs as a whole. Multiply each balance by its rate, add them up, and divide by the total balance.
- Card: ₹80,000 × 42% = ₹33,600
- Personal loan: ₹1,20,000 × 15% = ₹18,000
- App loan A: ₹25,000 × 90% = ₹22,500
- App loan B: ₹20,000 × 75% = ₹15,000
Total: ₹89,100 ÷ ₹2,45,000 = about 36% a year. Any consolidation offer should be compared against this figure, and against what you will repay in total. (GST on card interest makes the card’s real cost a little higher than 42%.)
Step 3: Check your credit report
Get your free credit report and look for errors: loans you never took, closed loans still shown as active, wrong overdue amounts. Bureaus must resolve disputes within 30 days. Checking your own report is a soft enquiry and does not affect your score. If you see a lender you do not recognise, our guide on an unknown lender on your CIBIL report explains what to do.
Step 4: Work out the full amount you need
Add up every outstanding balance plus any foreclosure charges. Meera’s personal loan charges 3% of the outstanding plus GST to close early: ₹1,20,000 × 3% × 1.18 = ₹4,248. So she needs ₹2,49,248.
If the new loan deducts a processing fee upfront, borrow enough to cover it. A ₹2,58,000 loan with a 2% fee plus GST (₹6,089) puts ₹2,51,911 in her account, enough to clear everything with about ₹2,660 to spare. Do not leave one app loan open “for later”. That is how the cycle restarts.
Step 5: Compare offers using the KFS
Every regulated lender must give you a Key Fact Statement before you sign, with the APR and total amount payable. Compare those, not the headline rate. Our APR vs interest rate guide explains the difference.
Say Meera is offered ₹2,58,000 at 19% a year (reducing balance):
| Option | Monthly payment | Share of salary | Total repaid |
|---|---|---|---|
| Current debts as they are | ₹29,948 (falls after 3 months) | 48% | about ₹3,06,380 |
| Consolidate over 24 months | ₹13,005 | 21% | about ₹3,12,130 |
| Consolidate over 30 months | ₹10,870 | 18% | about ₹3,26,110 |
Notice what this shows. Even at 24 months, Meera would repay about ₹5,750 more in total than if she somehow paid off her current debts on schedule. That is common when app loans are involved: they are expensive but short. What she gains is a monthly payment cut by more than half, one date, and an end to borrowing from new apps to cover the old ones. If she could have paid ₹29,948 a month comfortably, she would not need this loan.
That is an honest trade-off, and only you can judge it. Pick the shortest tenure you can manage. Run your own figures through the EMI comparison calculator or our consolidation calculator.
Juggling several EMIs? See in two minutes whether one loan could replace them.
Step 6: Repay and close each account the same week
Under RBI’s digital lending rules, the loan money comes into your own bank account. Pay each lender directly, ideally within a day or two of receiving the funds. Pay the full closure amount, not just the EMI. Keep payment receipts and screenshots.
Close the costliest debts first if timing is tight, but close them all.
Step 7: Collect closure letters
Ask every lender for a no-dues certificate or closure letter. For app loans, download it from the app or request it from the grievance officer. Our guide on closing a loan app loan and getting your NOC explains how. Without this, an old loan can keep showing as active.
Step 8: Check CIBIL and automate the new EMI
Lenders now report to credit bureaus at least every fortnight, so check your report 30–45 days after closing. Every old account should show “Closed”, not “Settled” and not still active. Raise a dispute if anything is wrong.
Set up auto-debit for the new EMI a day or two after salary day. If you miss even one EMI on the new loan, much of the benefit is lost. Our pillar on EMI consolidation covers the mistakes to avoid, and how consolidation affects your CIBIL score shows the month-by-month timeline.
Check before you apply
- The APR and total amount payable in the Key Fact Statement (KFS), compared with what you pay today
- Processing fee plus 18% GST, and any insurance or add-ons (ask whether they are optional)
- Foreclosure charges on your existing loans and on the new loan
- That the new loan covers every debt you plan to close, and that you will get a closure letter or NOC for each
- Whether the new EMI fits your monthly budget after essentials and savings
- That the lender is RBI-regulated: check our lender directory and loan app directory
Frequently asked questions
Can I combine all my loans into one EMI?
Usually, yes, as long as you qualify for a loan large enough to cover every outstanding amount plus foreclosure charges and fees. Lenders will check your income, your existing EMIs (FOIR) and your credit history. Secured loans such as home loans are usually left as they are.
Will combining loans lower my interest rate?
It may, if most of your debt is credit card dues or expensive personal loans. If most of it is app loans, the new loan may not be cheaper in total, as Meera’s example shows. The benefit may be lower monthly outgo and a single date, so compare total repayment before you decide.
How long does it take to combine loans?
Approval can take from a day to a couple of weeks, depending on the lender and your documents. Closing old accounts takes a few more days, and the updated status usually shows on your credit report within 30–45 days.
Should I close my credit card after consolidating?
Not necessarily. Clearing the balance and keeping the card unused, or with a lower limit, can help your credit utilisation. Close it only if you know you will run it up again.
Disclosure: FundsTiger (Gatimaan Finance Advisors Pvt. Ltd.) is a loan marketplace and lending service provider for RBI-regulated lenders. Aparampaar Finance Pvt. Ltd. (Omozing), one of those lenders, is a related party of FundsTiger. This article is general information, not financial advice. Read your loan agreement and KFS before you decide.