Best Student Loan Consolidation Banks: Know How to Choose

Best Student Loan Consolidation Banks

Student loan consolidation is one of the best ideas when dealing with multiple debts. In India, banks offer personal loans for debt consolidation at lower interest rates. For example, you have two separate loans going on with Bank A and Bank B. Apart from that you have a credit card bill of say INR 50,000. 

In this case, Bank C offered you a personal loan of an amount that is enough to foreclose both the existing loans and your credit card bill. In this way, you consolidated your loans and will now pay only one EMI to Bank C for personal loans. Let’s understand how to compare and choose the best student loan consolidation banks in India. 

How to Choose the Best Student Loan Consolidation Bank?

Ajit is a student pursuing a postgraduate program at Oxford University. He has already taken two loans to finance his study abroad program with floating interest rates of 14.5% and 16%. In Oxford, a city with a high cost of living he used a credit card to manage the expenses and the total due for a credit card was INR 60,000. 

Ajit is now dealing with 3 different for which he is making payments in EMIs. While figuring out ways to manage finances Ajit came across the website of ABC Bank which has a scheme for personal loans for debt consolidation at a 13% interest rate. Now what kind of benefits do you think Ajit noted down here? Let’s check:

  • With one personal loan, he was able to foreclose all the ongoing loans and credit card bills. 
  • The rate of interest on personal loans was 13%, quite less than that of existing loans.
  • The repayment period was longer which means the EMI amount will be lower and he has to pay only one EMI.
  • The personal loan for debt consolidation offered by ABC Bank was collateral-free. 

Considering all these factors Ajit decided to do in-depth research on the banks in India offering personal loans for debt consolidation. In this case, you can easily understand the factors which you must consider while choosing the best student loan consolidation bank. Let’s discuss the major features of the top banks offering personal loans for debt consolidation.

Loan amortization is a financial tool which offers complete transparency in your repayment. It’s very important to understand loan amortization while getting an education loan refinancing. Check this blog and understand

Loan Amortization in Education Loan Refinancing 

SBI Personal Loan 

SBI is the largest public sector bank in India with over 48 crore customers and more than 22,405 branches across the country. State Bank of India (SBI) offers personal loans under different schemes depending on the source of income and type of job. The interest rate also varies according to the schemes under which you are taking a personal loan for debt consolidation from the banks. The interest rate for SBI personal loans ranges from 11.05% to 14.05%.

Name of SchemeCategory/EligibilityEffective Interest Rate
Xpress Credit Applicants working in a corporate sector 12.05%-14.05%
Xpress Elite SchemeSalary A/c with SBI or other banks Salary A/c with SBI: 11.05%-11.55%
Salary A/c with Other Bank: 11.30%-11.805
Xpress Lite SchemeSame as Xpress Credit1% higher than Xpress Credit
SBI Quick Personal Scheme through the CSP PortalFor customers not maintaining Salary A/c with SBI0.25% higher than Xpress Credit
Xpress Credit Insta Top-up Loans12.15%
Pre-Approved Personal Loan to Non-CSP CustomersAny customer with Non-CSP Accounts13.55-14.05%

Axis Bank Personal Loan for Debt Consolidation

Axis Bank offers a personal loan which is best suited for debt consolidation with minimum paperwork and a completely online process. The minimum and maximum amount of personal loan from Axis Bank is INR 50,000 and INR 25 lakhs respectively. Axis Bank’s personal loan interest rate ranges from 10.49% to 21% depending on the eligibility criteria, amount and the tenure of loan. Check more details in the table below:

Particular Details
Maximum amount of LoanINR 25 lakhs
Repayment PeriodUp to 60 months
Eligibility CriteriaAny salaried person above 18 years of age with a net monthly salary above INR 15000. 
Processing FeeUp to 2% of the total loan amount + applicable taxes/GST
Net DisbursementNet loan amount after deducting upfront charges i.e. processing fees, stamp duty and  insurance charges (if applicable)

Bajaj Finserv Personal Loan for Debt Consolidation

Bajaj Finserv is a private non-banking financial corporation (NBFC) that offers hassle-free quick personal loans to salaried individuals for debt consolidation and other requirements. You can easily take a personal loan from Bajaj Finserv if you have a monthly income above INR 25000 (based on the city of residence). The interest rate ranges from 11% to 37% per annum depending on income, eligibility and repayment terms. Check the major features of Bajaj Finserv personal loan for debt consolidation below:

ParticularsDetails
Name of SchemePersonal Loan for Salaries Individuals (Term Loan, Flexi Term Loan, Flexi Hybrid Loan) 
Maximum Amount of LoanINR 40 lakhs
Eligibility CriteriaSalaries for individuals above 18 years with a net monthly income of INR 25,000.
Repayment PeriodUp to 96 months
Processing fee3.93% of the loan amount including taxes

There is a lot of confusion and myths regarding education loan refinance and student loan consolidation. If you also have questions regarding the same you can read this blog on 

Refinancing Vs Consolidating Student Loans: Which is Better

HDFC Bank Personal Loan for Debt Consolidation 

HDFC Bank is one of the largest private sector banks in India. The bank offers hassle-free personal loans for debt consolidation and other requirements and the entire process is completely online. You can get a personal loan from HDFC Bank within 24-48 hours without even visiting a branch of the bank. The interest rate charged by the bank for a personal loan ranges from 10.505 to 25% (fixed). Check the significant features of HDFC Bank personal loan below:

Particulars Details
Maximum Loan Amount INR 40 lakhs
Repayment Period Up to 60 months 
Processing FeeUp to INR 4,999 + GST
Eligibility CriteriaSalaried Individuals with a monthly income of INR 25,000 and above 

ICICI Bank Personal Loan for Debt Consolidation

ICICI bank offers personal loans to salaried individuals of an amount up to INR 50 lakhs. The banks offer a flexible repayment period of 12 to 84 months as per your repaying capability. Any individual who is above 20 years of age and has completed at least two years in the profession or job can easily get a personal loan of the desired amount subject to the terms and conditions provided by the bank. Check some of the significant features of ICICI bank personal loan:

Particulars Details 
Rate of Interest 10.50% to 16% fixed rate of interest
Repayment PeriodUp to 7 years
Processing Charge Up to 2.50% of the loan amount
Time taken for Loan ApprovalWithin 72 hours

Note: The above-mentioned data is taken from the official website of the banks and is subject to change depending on the guidelines from the monetary authorities. Students are suggested to check all the details and terms and conditions with the bank before taking a personal loan. 

FAQ

Which bank is best for taking a personal loan for debt consolidation?

Several banks in India offer quick personal loans depending on your eligibility criteria. Usually, the government banks offer lower interest rates as compared to the private banks. However, government banks have a long loss of eligibility criteria. If you want a quick personal loan of a higher amount you can choose among SBI, HDFC, ICICI Bank etc.

Can I get a personal loan from SBI if my net monthly income is INR 50,000?

If you don’t have a salary account with SBI you may not be able to get a personal loan from this bank. You can check with your nearest branch for more eligibility criteria. 

How can I get an online personal loan for debt consolidation?

A lot of banks today offers hassle-free online personal loan. For example, you can easily get a personal loan from HDFC or ICICI bank by submitting the required documents online within hours. 

When you are choosing the best student loan consolidation bank you must compare between a lot of reputed banks and NBFCs who have a related track record. Consider major factors while deciding on banks like interest rates, repayment period, and any other terms and conditions.

To know more about personal loans for student loan consolidation, the best bank accounts for students, forex and banking experience for global students or international money transfers, reach out to our experts at 1800572126 to help ease your study abroad experience. 

Related Blogs
Pros and Cons of Student Loan Consolidation 
How to Apply for Education Loan Refinance 
Impact of Moratorium and Grace Period on Education Loan Refinancing 

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About Shekhar Suman

Shekhar is a versatile writer with a passion for sharing knowledge and creativity. With expertise in crafting informative blogs on study abroad and finance, Shekhar helps readers navigate the complexities of education and financial planning. Most of his writings blend the practicality of finance and the beauty of language, making a meaningful impact in both spheres. Beyond his professional pursuits, he finds solace in the writing Shayari.

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