Posted on 11 October 2026
I currently have outstanding balances across three credit cards totaling around ₹4.2 Lakhs. The finance charges (APR 42%) and minimum due payments are getting unmanageable. Can I take an unsecured personal loan to pay them off completely?
Portal Admin & Advisory
Yes, absolutely. Consolidating credit card debt into a single personal loan is one of the most effective ways to break the revolving interest trap in India. Key advantages: 1. Drastic Interest Reduction: Credit card revolving interest typically charges 3.5% to 3.75% per month (42%–45% APR). A personal loan from a major bank or NBFC typically ranges from 10.5% to 15% per annum, reducing your interest outgo by over 60%. 2. Single Predictable EMI: Instead of tracking multiple due dates and minimum payments that barely touch the principal, you get a fixed 24 to 48 month structured repayment schedule. 3. CIBIL Score Recovery: High credit card utilization (>30%) heavily penalizes your credit score. Moving the balance to an installment loan clears card limits, causing your score to recover over subsequent quarters. Actionable Step: Verify your credit score first. If your CIBIL is above 720, check the LoanMe pre-approved personal loan offers. Once disbursed, immediately instruct the card issuers to close the accounts or reduce limits to avoid re-accumulating debt.
