Debt consolidation with the term effect separated from the rate effect. A lower monthly payment can come from a lower rate or from a longer term, and only the first saves money.
Also called: consolidate debt calculator, debt consolidation loan.
₹1,57,230 saved by consolidating at 14% against 32%. The new payment is ₹18,117 against 28,000 now. Payoff moves from 37 months to 48. The consolidated term is longer than your current payoff, so part of the lower payment is stretching rather than saving.
This is what the calculation gives for the numbers you entered. It is an estimate, not advice, and it knows nothing about your situation beyond those numbers. Rules for India change on a published schedule; the effective date is shown on every rule-based tool.
Consolidation replaces several debts with one loan at a single rate. The genuine benefit is the rate reduction. The trap is that a lower monthly payment often comes mostly from stretching the term, which reduces the payment and increases the total interest. This shows both the payoff period and the total interest so the two effects are separable. The other risk is behavioural rather than arithmetic: consolidating credit card debt frees up the cards, and re-accumulating on them turns one debt into two.
a lower payment from a longer term is not the same as a lower costEach of these is asserted on every build. If a change to the engine ever moved one of these answers, the build would fail before the page could print it.
Interest saved₹1,57,230
2% of 6,50,000
Open this exampleInterest saved-₹90,097
boundary
Open this exampleFormula version 1.0.0 · definition 1.0.0 · India · Report a problem with this calculator