Revealing the Major Pros and Cons of Student Loan Consolidation

Advantages of Student Loan Consolidation

Loan consolidation simplifies the repayment by combining multiple EMIs into one EMI.

Simplified Repayment

Applicants may get potentially lower interest rates on newly consolidated loan.

Lower Interest Rates

Loan consolidation enables extended repayment terms which reduces monthly EMIs.

Extended Repayment Tenure

Disadvantages of Student Loan Consolidation

An upper limit of up to INR 25 to 30 lakhs is set. Beyond that, loan consolidation is challenging.

Limited Loan Amount

3-5% of the total loan amount is charged to process the student loan consolidation.

Additional Fees

Not all education loans are suitable for student loan consolidation.

Not suitable for all loan types

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