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.
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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.
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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 Scheme | Category/Eligibility | Effective Interest Rate |
| Xpress Credit | Applicants working in a corporate sector | 12.05%-14.05% |
| Xpress Elite Scheme | Salary 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 Scheme | Same as Xpress Credit | 1% higher than Xpress Credit |
| SBI Quick Personal Scheme through the CSP Portal | For customers not maintaining Salary A/c with SBI | 0.25% higher than Xpress Credit |
| Xpress Credit Insta Top-up Loans | – | 12.15% |
| Pre-Approved Personal Loan to Non-CSP Customers | Any customer with Non-CSP Accounts | 13.55-14.05% |
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 Loan | INR 25 lakhs |
| Repayment Period | Up to 60 months |
| Eligibility Criteria | Any salaried person above 18 years of age with a net monthly salary above INR 15000. |
| Processing Fee | Up to 2% of the total loan amount + applicable taxes/GST |
| Net Disbursement | Net 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:
| Particulars | Details |
| Name of Scheme | Personal Loan for Salaries Individuals (Term Loan, Flexi Term Loan, Flexi Hybrid Loan) |
| Maximum Amount of Loan | INR 40 lakhs |
| Eligibility Criteria | Salaries for individuals above 18 years with a net monthly income of INR 25,000. |
| Repayment Period | Up to 96 months |
| Processing fee | 3.93% 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
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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 Fee | Up to INR 4,999 + GST |
| Eligibility Criteria | Salaried 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 Period | Up to 7 years |
| Processing Charge | Up to 2.50% of the loan amount |
| Time taken for Loan Approval | Within 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
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.
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.
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.
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| 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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