Question 1

What is a debt consolidation loan?

Accepted Answer

One new loan that pays off several old ones. Loan consolidation and debt consolidation mean the same thing. FREED's Loan Consolidation Plan covers personal loans, credit cards, BNPL, payday and P2P loans.

Question 2

How do I put all my loans in one EMI?

Accepted Answer

Take a debt consolidation loan big enough to clear every balance. Share your details, a counsellor checks which bank approves loan consolidation for your profile, pre-approval is usually instant, final approval up to 48 working hours.

Question 3

What is the eligibility for loan consolidation?

Accepted Answer

CIBIL 700 or above, steady income, 2 or more unsecured loans, no recent missed EMIs. The 700 cutoff comes from the banks funding the debt consolidation loan, not from FREED.

Question 4

Can I get debt consolidation with a low CIBIL score?

Accepted Answer

Below 700 it is very difficult. Loan consolidation is built for people still paying on time. If missed EMIs pulled your score down, we would discuss loan settlement instead. Settlement is not something a borrower chooses out of preference.

Question 5

Which companies offer loan consolidation in India?

Accepted Answer

Banks and RBI-regulated NBFCs fund it. Platforms like FREED match you to one. When comparing debt consolidation companies: check RBI regulation, all fees shown upfront, a genuinely lower EMI, and nobody asking for money before approval.

Question 6

Is there a loan consolidation app?

Accepted Answer

Yes. Start on the FREED app or freed.care. Check eligibility and talk to a counsellor in one place. A debt consolidation app should give you a real answer, not just take your number.

Question 7

How much can I save with debt consolidation?

Accepted Answer

Eligible loan consolidation customers cut their EMI by 10 to 30%*. The saving comes from a lower rate, a longer repayment time, or both. Longer repayment time means more total interest. You see both numbers. *Savings, rates and approval times depend on your loans, your credit profile and the partner bank or NBFC's policy.

Question 8

Will loan consolidation hurt my CIBIL score?

Accepted Answer

Usually it helps. Old loans close as paid in full, not settled. One on-time EMI builds a clean record. Expect a small dip from the debt consolidation enquiry, recovered in a few months.

Question 9

Loan consolidation or loan settlement?

Accepted Answer

Can you still pay? Then loan consolidation, because it protects your score and clears the debt in full. Cannot pay for 3 months or more? Settlement is not something a borrower chooses out of preference. It can cut what you owe by up to 50%*, and your report shows settled for up to 7 years. *Savings, rates and approval times depend on your loans, your credit profile and the partner bank or NBFC's policy.

Question 10

What does FREED charge for loan consolidation?

Accepted Answer

Nothing. No fee for counselling or for checking your debt consolidation eligibility. The bank funding the loan may charge a processing fee, and old loans may carry foreclosure charges. Every figure is shown before you sign.

Question 11

What does loan consolidation mean?

Accepted Answer

Loan consolidation means replacing several loans with one debt consolidation loan. Consolidation on its own just means combining things, and in lending it means combining what you owe into a single loan with a single EMI. People also ask us "consolidation kya hota hai" and the answer is the same: many loans in, one loan out. Loan consolidation meaning and debt consolidation meaning are interchangeable. Neither one reduces what you owe. Both change how you repay it.

Question 12

Can I consolidate my HDFC, SBI, ICICI or Axis loans?

Accepted Answer

Yes. Loan consolidation does not care which bank gave you the original loan, and nor does any debt consolidation partner we work with. A debt consolidation loan from one partner bank or NBFC pays off your personal loans and credit cards at HDFC, SBI, ICICI, Axis, Bajaj or anywhere else, and you repay the new one. What matters is your CIBIL score, your income and your repayment record, not the logos on your old loans. One caution: your existing bank may charge a foreclosure fee when the loan closes early, and that fee belongs to them.

Question 13

How do I check all the loans in my name before consolidating?

Accepted Answer

Pull your credit report before you start any loan consolidation. Every loan and credit card linked to your PAN appears on it, including ones you may have forgotten. You can check through Credit Insights, or directly from any of the four bureaus. Do this before you apply for debt consolidation, because a loan you miss will not be included in the new loan and you will end up paying two EMIs instead of one.

Question 14

What are the common myths about debt consolidation?

Accepted Answer

Three debt consolidation myths come up constantly. First, that loan consolidation reduces your debt. It does not. It reduces your monthly EMI and the number of due dates. Second, that it damages your credit score. A debt consolidation loan closes your old accounts as paid in full, which helps once you pay on time. Third, that anyone can get one. The CIBIL 700 cutoff is real and most rejections happen there.

Question 15

How long does loan consolidation take?

Accepted Answer

Loan consolidation moves faster than most people expect. Pre-approval is usually instant once a counsellor has your loan details. Final approval of the debt consolidation loan takes up to 48 working hours. After that the partner bank pays off your old loans directly, which typically settles within a few working days depending on how quickly each old bank processes the closure. Your single EMI starts from the next cycle.

Question 16

What documents do I need for a debt consolidation loan?

Accepted Answer

Standard ones for any debt consolidation loan. Identity and address proof, PAN, recent salary slips or income proof, and bank statements covering the last few months. The bank funding your loan consolidation will also pull your credit report. If you are self employed, expect to show business income proof instead of salary slips. Your counsellor tells you the exact list for the bank you are matched with, so nothing comes as a surprise halfway through.

Question 17

Can I consolidate only my credit card debt?

Accepted Answer

Yes. Credit card consolidation is one of the most common reasons people come to us. Card interest is usually the most expensive debt someone carries, so moving it into a debt consolidation loan at a lower rate often produces the biggest single saving. You can consolidate cards alone, or cards together with personal loans, BNPL and payday loans in the same loan consolidation.

Question 18

What happens to my credit cards after debt consolidation?

Accepted Answer

After loan consolidation they stay open with a zero balance, and that is the dangerous part. The debt consolidation loan clears what you owed, so the full limit is available again. People who keep spending end up carrying the loan consolidation EMI plus a fresh card balance, which is worse than where they started. Freeze the cards, lower the limit, or hand them to someone you trust until the new loan is well under way.

Question 19

Can I prepay or close a loan consolidation early?

Accepted Answer

Usually yes, and closing a loan consolidation early is often worth doing. Prepaying cuts the total interest, especially if you took a longer repayment time to bring the EMI down. Check the foreclosure or part-payment charge on your debt consolidation loan before you commit, because it varies by bank and NBFC. Your counsellor can tell you what the charge looks like on the offer you are considering.

Question 20

What interest rate will I get on a debt consolidation loan?

Accepted Answer

Debt consolidation rates start from 11.99%* and go up from there. What you are offered depends on your CIBIL score, your income, how much you want to consolidate, and the partner bank's own policy. A loan consolidation only makes sense if the new rate is meaningfully below the blended rate you pay today, which is why your counsellor shows you the comparison rather than just quoting a headline number. *Savings, rates and approval times depend on your loans, your credit profile and the partner bank or NBFC's policy.

Question 21

Does loan consolidation reduce the total amount I owe?

Accepted Answer

No, and anyone telling you otherwise is selling something else. A debt consolidation loan repays your old loans in full and you owe the new bank the same principal. What changes is the interest rate, the repayment time and the number of EMIs. If you need the amount owed to come down, that is loan settlement, not consolidation. Settlement is not something a borrower chooses out of preference, and it costs you your credit score for up to 7 years.

Question 22

How do I avoid loan consolidation scams?

Accepted Answer

Four tests before you sign any debt consolidation agreement. The lending partner must be an RBI-regulated bank or NBFC. Every fee and the interest rate must be visible before you sign anything. The new EMI must be genuinely lower than your current EMIs added together, in writing. And nobody legitimate asks for money before your debt consolidation loan is approved. An upfront fee to "arrange" or "guarantee" approval is the single clearest sign to walk away.

Comparison criteria	Balance transfer	Loan consolidation	Loan settlement
Best for	1 or 2 costly loans	2 or more loans, debt consolidation territory	Cannot pay at all
What happens	Loan moves to a cheaper bank	1 new loan clears them all	Bank accepts less than full
After	Same count, lower rate	1 EMI, often 10 to 30%* lower	A reduced agreed amount
CIBIL	Neutral to positive	Improves with on-time EMIs	Settled for up to 7 years
Score needed	Good	700 or above	No minimum

Multiple EMIs ko 1 karoSave 50% on your EMIs

Reduce EMI by up to 50%*

Interest rates from 11.99%*

1 Loan, 1 EMI, 1 Due date

Reduce EMI by up to 50%*

Interest rates from 11.99%*

1 Loan, 1 EMI, 1 Due date

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₹450 Cr+

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32,645+

75,000+

₹450 Cr+

4.8/5

20 Lakh+ borrowers trust us

Too many due dates Too little peace of mind

What is loan consolidation?

Multiple loans. One EMI. A simpler way to manage your repayments.

Keep more of your salary every month

Without Loan Consolidation

With Loan Consolidation

Is Loan Consolidation Right For You?

I have multiple loans & credit cards.

My salary doesn't last till month-end.

I'm only paying the minimum due.

Every loan has a different interest rate.

I have multiple loans & credit cards.

My salary doesn't last till month-end.

I'm only paying the minimum due.

Every loan has a different interest rate.

How FREED loan consolidation works?

How FREED loan consolidation works?

Share your loan details

Share your loan details

Get matched

Get matched

Consolidate & Get 1 EMI

Consolidate & Get 1 EMI

Balance transfer vs loan consolidation vs loan settlement

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Loan consolidation guides

What is a debt consolidation loan?

How do I put all my loans in one EMI?

What is the eligibility for loan consolidation?

Can I get debt consolidation with a low CIBIL score?

Which companies offer loan consolidation in India?

Reduce EMI
by up to 50%*

Interest rates
from 11.99%*

1 Loan, 1 EMI,
1 Due date

Reduce EMI
by up to 50%*

Interest rates
from 11.99%*

1 Loan, 1 EMI,
1 Due date

Too many due dates
Too little peace of mind