South Indian Bank has launched SIB Power CONSOL, a debt-consolidation product designed to simplify repayments and ease monthly cash flow for borrowers juggling multiple EMIs. The plan converts several high-cost loans — such as home, car, education, personal and consumer-durable loans — into a single, lower-interest, property-backed loan with one monthly EMI. For borrowers stretched thin by multiple due dates and rising interest burdens, this can be a useful tool — provided you understand the costs and trade-offs.

SIB Power CONSOL is a consolidation facility where the bank settles your existing loans and replaces them with one new loan. The new facility typically carries a lower interest rate than many unsecured or high-cost loans, and it consolidates scattered EMIs into a single payment. South Indian Bank acts like a debt adviser during the process: it assesses your overall liability, structures the combined loan, and offers a simplified repayment schedule.

This scheme allows consolidation of:

• Home loans (including balance transfers)

• Car loans

• Education loans

• Personal loans

• Consumer-durable loans and other retail credit

The aim is to fold high-interest and multiple small EMIs into one manageable instalment.

• Type: Property-backed loan (mortgage required)

• Loan-to-Value (LTV): Up to 75% of the property’s value

• Loan amount: ₹10 lakh to ₹3 crore

• Tenure: Up to 15 years for consolidation loans; for home-loan balance transfers, tenure can extend up to 30 years

• Target borrowers: Primarily salaried and self-employed individuals aged 30–55 who have multiple existing loans and stable income

Borrowers must mortgage a residential or commercial property to avail the facility, which means this product is more suitable for those who own property and want to leverage it to restructure debt.

• Property as security: Your home or commercial asset will be mortgaged. Defaulting can put the property at risk.

• Foreclosure and processing charges: Closing existing loans may attract foreclosure penalties and fees; include these in your cost comparison.

• Longer tenure may increase total interest: While monthly EMI may fall, extending tenure can increase the cumulative interest paid.

• Upfront costs: Processing fees, legal and valuation charges for the new loan will apply.

• Not suitable for short-term fixes: If you can clear high-interest loans quickly, consolidation may not be optimal.

• Borrowers with multiple high-interest unsecured loans (personal loans, consumer finance) who own property and have stable incomes.

• Individuals aged 30–55 balancing family and loan obligations, and those seeking one predictable monthly outflow.

• Those who want to improve their credit score by regularising payments under a single loan.

Consider SIB Power CONSOL if:

• A significant portion of your salary is going towards many EMIs.

• The weighted average interest rate on your consolidated liabilities is higher than the bank’s consolidation rate even after including foreclosure fees.

• You prefer lower monthly EMI to ease immediate cash flow, and you understand longer-term interest implications.

Before committing, run a total cost comparison: add foreclosure penalties, processing fees, and projected interest on the new tenure and compare it with continuing existing loans. If total cost falls or your liquidity improves meaningfully, consolidation could be the right move.

SIB Power CONSOL offers a practical path to simplify EMI management and reduce monthly interest pressure by converting multiple loans into one property-backed facility. It can be especially helpful for borrowers grappling with high-interest liabilities. But consolidation is not a one-size-fits-all remedy — evaluate the total cost, security implications, and how longer tenures affect lifetime interest before you switch. If you’d like, I can prepare a side-by-side cost calculator example (before vs after consolidation) to help you decide.