Why Balancing Multiple Loans Matters

Managing multiple loans in India in 2025 can be challenging but achievable with the right strategies. Loanpao helps you prioritize repayments, explore debt consolidation, and maintain financial stability without compromising your goals.

Steps to Balance Multiple Loans

Follow these steps to manage your loans effectively:

  1. List All Loans: Document loan types, amounts, interest rates, and EMIs.
  2. Prioritize High-Interest Loans: Pay off loans with higher rates (e.g., personal loans at 12–18% p.a.) first.
  3. Create a Budget: Allocate 40–50% of income to EMIs and essentials.
  4. Explore Debt Consolidation: Combine loans into one with a lower interest rate.
  5. Automate Payments: Set up auto-debits to avoid missed EMIs.

Debt Consolidation Options

Consolidate multiple loans for easier management:

Option Details Interest Rate
Balance Transfer Loan Transfer high-interest loans to a single loan 8–12% p.a.
Loan Against Property Use property as collateral for a lower-rate loan 9–11% p.a.
Personal Loan Top-Up Add-on loan to clear existing debts 10–15% p.a.

Loan Repayment Prioritization Strategies

Choose a strategy that suits your finances:

  • Snowball Method: Pay off smallest loans first for quick wins.
  • Avalanche Method: Focus on highest interest rate loans to save on interest.
  • Hybrid Approach: Combine both, prioritizing high-interest or high-EMI loans.

Tips to Avoid Common Pitfalls

Stay on track with these tips:

  • Avoid taking new loans until existing ones are manageable.
  • Maintain an emergency fund (3–6 months of expenses).
  • Monitor your credit score to ensure timely payments (aim for 750+).
  • Negotiate with lenders for better rates or repayment terms.
  • Use Loanpao’s EMI calculator to plan repayments.

How Loanpao Helps You Manage Loans

Loanpao offers:

  • Loan comparison tools to find consolidation options.
  • EMI calculators for budgeting and repayment planning.
  • Expert advice on debt management strategies.
  • Balance transfer and refinancing support.
  • Credit score monitoring and improvement tips.

Frequently Asked Questions

Combining multiple loans into a single loan with a lower interest rate for easier repayment.

It may cause a temporary dip due to a new loan application but improves with timely payments.

Yes, but check for prepayment penalties (1–2% of outstanding amount).

Ideally, 40–50% of your monthly income to maintain financial stability.

Paying off loans with the highest interest rates first to minimize total interest paid.

Loanpao provides consolidation options, EMI calculators, and expert debt management advice.

How to Get Started with Loanpao

Take control of your loans with Loanpao:

  1. Visit Loanpao’s application page to explore consolidation options.
  2. Use the EMI calculator to plan affordable repayments.
  3. Compare balance transfer and refinancing offers.
  4. Apply for debt management solutions with expert support.

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