A loan is itself debt. To pay off your existing debt, taking a loan can increase your debt burden as a loan comes with interest payment. However, it also depends on the type of debt you have at the moment. 

For example, in case you want to consolidate all your debts and pay off as a single one, you can opt for a debt consolidation loan. This can help you make a single payment each month to one lender. However, you need to compare the interest rates on existing loans and the new loan. Higher interest on new loans means higher repayment. 

Debt consolidation loans are generally offered to individuals who have a low credit score with multiple debts. It can help them pay off the debts and increase the credit score as well. The following are some of the popular lenders who offer debt consolidation loans. 

Bajaj Finserv Debt Consolidation Loan

  1. Loan amount up to Rs. 25 Lakhs
  2. Flexible tenure
  3. Attractive interest rates
  4. Disbursal in 24 hours
  5. Pre-approved offers and deals
  6. Minimal documentation 
  7. The quick online application process

Lendbox Debt Consolidation Loans for Credit Card Settlement & Informal Debts

  1. Loan amount from Rs. 25,000 to Rs. 5 Lakhs
  2. Interest rate starting from 11.49% onwards
  3. Paperless process
  4. No pre-closure charges
  5. Your monthly income should be a minimum of Rs. 25,000 
  6. You must be a minimum of 22 years old
  7. You must have an Indian bank account
  8. You must have a valid ID Proof
  9. You must be an Indian resident
  10. Processing fee 2% to 6% of the loan amount
  11. Loan tenure 3 to 60 months

DBS Refinance Loan

  1. For transferring your high-cost loan or consolidating all your debts
  2. Online application process
  3. Attractive interest rates
  4. Minimal documentation process

RupeeCircle Debt Consolidation Loan

  1. Tenure: 3 to 24 months
  2. No prepayment charges
  3. Approval in 2 to 3 working days
  4. Fixed interest rates

Faircent Debt Consolidation Loan

  1. Loan amount up to Rs. 10 Lakhs
  2. Interest rate from 12% to 36%
  3. Tenure: 6 to 36 months

I2iFunding Debt Consolidation Loan

  1. Tenure from 3 months to 24 months
  2. Loan amount is up to Rs. 3 Lakhs
  3. Fixed interest rates based on credit profile
  4. Minimum credit score requirement is more than 600
  5. Should have a minimum monthly salary of Rs. 20,000 who live in their own house and Rs. 25,000 for rented house applicants. 
  6. No prepayment penalty

If you are looking for a loan to pay off your debts, you can check your eligibility here.