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How To Get Rid Of Multiple Loans?

Submitted by admin on October 2nd, 2026

It may be hard to keep track of several loans. When you have multiple EMIs, different interest rates, repayment dates and loan terms, it can become challenging to keep track of everything.

When you’re asking yourself how to pay off all your loans, the first thing you need to do is to know the full scope of all your debts. List all the loans with an outstanding balance, interest rate, remaining balance, remaining tenure of the loan. With this data, you can select a repayment method that is appropriate for you.

How To Get Rid of Multiple Loans?

The initial step in how to get rid of multiple loans is to first come up with a comprehensive listing of all the debts.

• Outstanding loan balance
• Interest rate
• Current EMI
• Remaining tenure
• Due date

Do not try to take on more debt for unessential items while working to repay your debt. When you get a bonus, tax refund, or other excess income, ask yourself if it is worthwhile to have some of the money go to pay down your debt. You can learn more about: Types of Loans in India.

How To Close Multiple Loans

You can choose several different ways on how to close multiple loans, depending on your financial situation.

A solution is to keep paying all the EMIs as per the schedule and then put the surplus amount into one loan. So, once that loan closes, the EMI amount used for that loan can be channeled to the next loan.

If a lender is considering foreclosure or prepayment, see the lender’s terms before taking any action. Foreclosure and/or prepayment fees may apply to some loans, and others may have certain requirements.

Also, ask for a closure statement or appropriate confirmation when you have repaid a loan. So, save the closing documents of the loan and payment for your records.

It is important not to stop repayments on other loans when concentrating on one loan. All loans in force should continue to be paid as they are currently.

Debt Consolidation Loan in India

A debt consolidation loan in India enables the borrower to pay off a number of debts with a single loan; it may be that he ends up with only one regular repayment instead of multiple ones.

If you had three loans each with a different EMI and repayment date, for instance. In the case of a consolidation loan, those unpaid balances may be paid off with the new loan. You would then pay back the new loan as per the terms.

Consolidation is not, however, always cheaper.

Consider this option, but compare:

• New interest rate
• Interest rates on loans that are already outstanding.
• Processing fee
• Foreclosure charges
• New loan tenure
• Total interest payable
• New EMI
• Any other associated charges

The lower the EMI, the cheaper the loan isn’t necessarily. With a longer loan term, the monthly payment will be lower, but so will be the total interest that is paid over the life of the loan.

Combine Multiple Loans into One EMI

Many borrowers find consolidation attractive for the reason that they would like to merge several loans into a single EMI.

It is easier to keep track of repayments if you have one EMI. This means that you will only have to remember one hefty monthly payment, rather than several due dates.

It should be based on convenience, however, and the overall cost.

Suppose you have 3 loans:

• Loan A: ₹8,000 EMI
• Loan B: ₹6,000 EMI
• Loan C: ₹5,000 EMI

You will be paying a total of ₹19,000 per month in the future.

These three payments can be replaced by one EMI in a consolidation loan. With a new EMI of ₹15,000, the cash flow can get better. However, it is important to review the new tenure and the repayment amount prior to signing the agreement.

It’s important to work toward making your debt easier to manage and without taking on more than you need to by combining multiple loans into one EMI. 

Personal Loan for Debt Consolidation

If you have many debts with high interest rates and you can get a new loan at a good rate, you may want to take out a personal loan for debt consolidation.

Personal loans are typically unsecured loans and are thus subject to a range of other considerations in addition to your credit profile, income, lender policies and other factors that determine eligibility. You can also learn about: How to Get a ₹50,000 Loan on Your Aadhaar Card?

Afterwards, compare this with the total repayment on the new personal loan.

Loan Repayment Strategy for Multiple EMIS

A good loan repayment strategy for multiple EMIs can help you to get rid of debt in a more organised manner.

The two most popular methods are the debt avalanche and debt snowball method.

The debt avalanche approach targets the loan that has the highest interest rate. So, paying a little more than the minimum payment on that loan and the rest of the loan payments are paid off. When the highest-interest loan is paid off, you will work on the next loan.

The debt snowball method is about paying off the smallest debt first. After closing that loan, you redirect the available payment towards the next smallest debt.

Develop A Realistic Monthly Payment Plan

If your monthly budget doesn’t allow a repayment plan, then it’s not going to work.

First of all, determine your net income. Next, deduct the basic costs like rent, food, utilities, insurance, education and transportation.

If there’s hardly any money left after paying bills and making debt payments, then do not set up an ambitious repayment program that is not feasible.

It’s also a good idea to have an emergency fund. If an emergency comes up, then you run the risk of running out of money to pay your debt.

Don’t undertake any new obligations that you don’t have to.

It might be easy to take on additional loans if you find yourself short of cash in your effort to pay off the several loans you already have.

This may lead to a vicious circle of one loan being used to pay off another.

Evaluate each new credit transaction and determine if it is needed and if it can be included in the current budget. It may be better to look at your overall budget and possibly seek some financial advice from a professional rather than getting another loan if you are constantly borrowing to pay daily bills. You can learn more about: A Brief Guide on How CIBIL Score Defaulters Can Apply for A Loan.

Frequently Asked Questions

How Can I Get Rid of Multiple Loans in India?

The first step is to list down all your loans, outstanding loans, interest rates and EMIs. Just continue to make all necessary payments and decide on a strategy used to repay, e.g., paying off high interest debt first or paying off smaller amounts. You may also want to compare if consolidating might make your payments easier.

Is It Possible to Consolidate All My Loans into One EMI?

It depends on your eligibility and the lender’s terms; it may be possible to do it with a debt consolidation loan. You can compare the new interest rate, term, fees and total repayments to the cost of maintaining the existing loans before consolidating.

What Do You Mean by Debt Consolidation Loan?

A debt consolidation loan is a fresh loan that may be employed to settle several debts. You typically pay back the new consolidated loan, rather than multiple lenders.

Is It a Good Idea to Take a New Loan to Close Old Loans?

You can compare the interest rate, total repayment, fees, tenure and EMI. A new loan might make repayments easier. It is not necessarily going to save you money in the long term.

How Do I Decide Which Loan to Repay First?

Compare the rates of interest, how much you owe and fees that are due. Some borrowers opt for the loan that has the highest interest, and others want to pay off the loan with the lowest balance. Select a plan you can stick to and make the necessary payments on other loans.

Which Is the Best Way to Pay Off Several Loans?

The default debt avalanche method is to pay off the loan with the highest interest rate first, whereas the debt snowball method is to pay off the loan with the smallest balance first. Snowball can give quicker “hands-on” progress and avalanche can give lower interest costs. 

Is There a Possibility to Avail Consolidation Loan When Already Having Multiple EMIs?

You could be eligible, but it will depend on the lender’s criteria. Your income, credit history, debt, payment history and financial obligations are among the factors that may be taken into account. It is not necessary that a person will be approved or denied with multiple EMIs.

Is A Multiple Loan Closure Beneficial for CIBIL Score?

When you are closing loans can impact your credit profile. It doesn’t necessarily impact your CIBIL score immediately or for certain. Just make sure that repayments for closed accounts are reported appropriately.

What Are the Things to Review Prior To Closing A Current Mortgage?

Look for prepayment penalties and fees, foreclosure fees, taxes, outstanding interest, processing fees and any other associated costs found in your loan document. Request a final statement for foreclosure from the lender, which specifies how much is needed to close the account.

What If I Can’t Afford My EMIs at Present?

Don’t turn a blind eye to the payments. You can communicate with your lenders as soon as possible and tell them of your financial hardship. Just inquire if there is any restructuring or an amended repayment schedule, or another alternative available that would be applicable to your situation.