Banking
What is a Debt Consolidation Loan and How Does it Work?
Debt consolidation is the act of clubbing all your existing loans together and paying them off as one single debt.
The biggest advantage of taking a debt consolidation loan is that you don’t have to worry about connecting with multiple vendors for repayments. There’s no need for managing multiple credit cards and the EMIs you pay are dedicated towards a single big loan.
There are some cases where you cannot apply debt consolidation. For example, you cannot take a debt consolidation loan for paying off pending EMIs for liable or secured assets (such as a home loan).
However, for unsecured loans like personal loans, education loans, and credit card dues, you can apply for a debt consolidation loan to clear them up.
Some organisations these days offer secured debt consolidation loans for individuals where they put up their property or business assets as the collateral.
Unsecured debt consolidation loans are hard to apply for and charge higher rates of interest. Most banks aren’t willing to give out individuals unsecured debt consolidation loans but there are NBFCs, fintech startups, and private organisations that disburse these loans as long as the borrower’s profile is verified and they demonstrate sufficient creditworthiness.
The best part about these loans is that the interest rates remain fixed and do not fluctuate. This means your monthly EMI repayments stay the same and don’t suddenly change, thus giving borrowers peace of mind.
Advantages of Debt Consolidation Loans

There are various reasons why you’d want to opt for a debt consolidation loan. Here’s a list of the benefits:
- One Single Liability – It’s hard enough to keep track of multiple EMIs and repayment. Going for debt consolidation takes care of this legwork since your lender takes care of the communications. Your only duty is to make sure you make your EMI payments on time for the debt consolidation loan you applied for.
- Lower Interest Rates – With multiple different loans, you have varying interest rates. But with a debt consolidation loan, you have to worry about a single interest rate. The payoff is lower too and it makes the monthly repayments lesser too.
- Paperless Process – If you’re applying for a debt consolidation loan online, you’ll find that the entire process is paperless. You can file your application digitally and you’ll find that lenders disburse the amount in just a few days if you meet their borrower requirements.
- Flexible EMI Tenure – Debt consolidation loans can have a flexible repayment tenure of anywhere between 2 years to 20 years. Self-employed individuals can get a tenure of up to 18 years while salaried individuals are liable for more.
Debt Consolidation Loans vs Debt Settlement
The key point to remember about debt consolidation loans is that they don’t completely erase all your debts. They simply club your loans together and transfer them to a single lender. As a borrower, you become responsible for making repayments to a single lender.
Debt settlement works a bit differently and aims in providing credit relief to borrowers. Here, negotiations are done with lenders to reduce the loan amount or interest rates instead of cutting down on the number of lenders by transferring the debt to an organisation.
There are many credit counselling services and organisations that help in doing debt negotiations with organisations and providing relief to borrowers, although they don’t directly give out any loans on their own.
How Does It Work?
Let’s say you’ve taken a loan of Rs 1 lac over a period of 2 years with an interest rate of 12%. And you have another loan of Rs 2 lacs which you have to clear within a year, its annual interest rate being 10%. The monthly EMI payments for each of these loans may come to around INR 5170 and INR 5830 respectively.
With a debt consolidation loan, your monthly EMI payment would amount to INR 6000 combined. However, the trade-off is that you get a longer tenure for making both the repayments on your existing debts. Instead of making multiple payments to lenders, you can now make a single EMI payment every month and end up saving money on interest. The longer tenure also gives you peace of mind as you know that you can handle your repayments a lot better. Debt consolidation gives you a favourable structure for making repayments and makes it convenient to pay off multiple small loans together by applying for a big loan.
Make sure you identify all your financial obligations and liabilities before going for this type of loan. It’s always a good idea to talk to an advisor before applying for debt consolidation if you’re not sure whether or not to go for one based on your financial circumstances.
What Are The Eligibility Requirements?
If it’s your first time applying for a debt consolidation loan, you’re going to have to make sure your KYC documents are with you. Lenders look for documents such as:
- Proof of employment and stable income (at least 2 months’)
- Letters from credit agencies
- Bank statements
- Proof of Identity
You must also be a resident of India and be 25 years of age or older. If you’ve been self-employed for years and have taken loans before the age of 23, you can still go ahead and apply for a debt consolidation loan before this age limit criteria. Your lending organisation will decide which creditors you pay off after your debt consolidation loan is approved. The way this works is you pay off your highest-interest loans first and clear up the remaining ones over time.
However, some organisations may allow you to pay lower-interest loans in the beginning and later clear the higher-interest ones. This will depend on your lender whom you’re applying for a debt consolidation loan through or the lending organisation. Additionally, you will have to demonstrate your creditworthiness and show your CIBIL Score when applying for these types of loans.
How Does A Debt Consolidation Loan Affect Your CIBIL Score?
If you take a debt consolidation loan and pay off the principal portion of your loan sooner, it can attract various credit lending organisations to your profile. The sooner you clear out the existing loans, the higher your CIBIL rating will be.
Also, the period involved in making all your repayments becomes shorter since you’re clubbing different debts into a single EMI. Overall, it makes it much easier to manage your existing debt repayments. You can also get a much more reasonable interest rate when you go for debt consolidation and sometimes, you can cut that number to one-thirds depending on what your current CIBIL rating is like.
Banking
Stanbic IBTC Reinforces Role in Driving Businesses, Key Sectors in Nigeria
By Adedapo Adesanya
Top financial services provider in Nigeria, Stanbic IBTC, has reiterated its commitment to empowering businesses, strengthening key sectors and positioning Nigeria as a competitive player in the global economy.
This came on the back of the 2026 edition of the Nigeria Business Summit from Wednesday, April 1 to Thursday, April 2, 2026, at the Landmark Event Centre, Victoria Island, Lagos. The two-day summit brought together industry leaders, policymakers, entrepreneurs and stakeholders across multiple sectors to explore sustainable business practices, foster economic growth and unlock global trade opportunities.
With the theme, Nigeria Means Business: Powering Sectors, Growing Sustainable SMEs & Unlocking Global Trade, the summit addressed critical issues across key sectors, including agribusiness, renewable energy, trade and Africa–China banking, as well as ICT and telecommunications. Additional sessions covered areas such as family business sustainability, artificial intelligence, employee value banking, insurance, pension and wealth management.
The event featured a keynote address by the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, who emphasised the urgent need for Nigeria to reposition itself as a leading export-driven economy to achieve sustained growth.
“Our true potential lies in becoming a leading export economy,” Edun stated. “Increased participation in regional and global trade will be critical to diversifying foreign exchange earnings and driving inclusive growth.”
He noted that while Nigeria’s GDP growth has improved to approximately 4 per cent, it remains below the level required to significantly reduce poverty. According to him, the country’s economic strategy is now shifting from stabilisation to growth acceleration, with trade expansion playing a central role.
Mr Edun highlighted ongoing reforms, including improved foreign reserves, rising non-oil revenues and renewed investor confidence, as indicators of a more resilient economy. However, he stressed that enhancing trade competitiveness would require continued investment in infrastructure, logistics and policy coordination.
He also highlighted the importance of small and medium-sized enterprises (SMEs), which account for over 90 per cent of businesses, noting that inclusive growth will depend on stronger collaboration between the public and private sectors.
Participants engaged in a rich line-up of activities, including expert presentations, panel discussions and high-level networking opportunities. Highlights of the summit included the Africa Trade Barometer presentation, client testimonial showcases and insightful discussions on the state of the African economy and intra-African trade opportunities.
Breakout sessions on agribusiness, ICT and healthcare, Africa-China banking and trade, as well as renewable energy, provided attendees with deeper, practical insights into some of the most critical sectors driving Nigeria’s economic future.
Speaking at the event, Mr Chuma Nwokocha, chief executive of Stanbic IBTC Holdings, represented by the organisation’s Chief Finance and Value Management Officer, Mr Kunle Adedeji, emphasised the importance of collaboration and innovation in driving sustainable growth.
“This summit has reinforced the importance of creating platforms where ideas can flourish, and businesses can grow sustainably. By working together, we can unlock new opportunities and drive economic advancement across Nigeria and the African continent,” he said.
The summit also spotlighted practical strategies for integrating sustainability into business operations, encouraging organisations to adopt environmentally conscious practices while maintaining profitability and competitiveness.
Mr Remy Osuagwu, Executive Director, Business & Commercial Banking, expressed satisfaction at the level of interest from participants, a critical element for a successful summit.
“From our conversations on energy and healthcare to the deep dives into trade, Africa-China relations, and agribusiness, Day 1 has offered perspectives that were both insightful and practical. I believe we’re all leaving with a stronger understanding of the opportunities emerging across our industries,” he said.
He acknowledged the level of engagement, questions, contributions and willingness of participants to share experiences, describing this as the real power of the Nigeria Business Summit, and a solid foundation for tomorrow.
The Chief Executive of Stanbic IBTC Bank, Mr Wole Adeniyi, who was represented by Mrs Bunmi Dayo-Olagunju, Deputy Chief Executive of Stanbic IBTC Bank, opened Day Two of the Nigeria Business Summit by highlighting the focus of the summit’s SME Day.
“Today, we build on Day One’s momentum with conversations that are equally critical for the future – from the dynamics of family businesses to the growing influence of artificial intelligence; the evolution of insurance, and the emerging space of electric vehicle banking.”
She further added, “Our goal on Day Two is simple: to explore what’s next. To understand how these developments will shape our businesses and how we can position ourselves ahead of the curve.”
Banking
Applications Open for GTCO ‘Take on Squad’ Hackathon 3.0
By Dipo Olowookere
Tech enthusiasts interested in participating in the Take on Squad Hackathon, organised by Guaranty Trust Holding Company (GTCO) Plc, can now enter the contest via the official portal at https://squadco.com/hackathon.
The programme enters its third edition in 2026, and the theme for this year is Smart Systems: The Intelligent Economy, according to a statement issued by the organisers.
The hackathon brings together developers, designers and entrepreneurs across Nigeria in a collaborative environment to build practical solutions across key sectors, including financial services, healthcare, commerce and digital inclusion.
Participants are challenged to design and build intelligent, data-driven solutions that transform how communities engage with money.
It is part of the organisation’s commitment to fostering innovation, empowering talent, and supporting the development of technology-driven solutions that address real-world challenges across Africa.
“Today’s dynamic, digitally driven world demands continuous innovation, which is shaping how economies grow, how businesses scale, and how societies evolve.
“Through Take on Squad Hackathon, we are deliberately investing in the ideas and talent that will define the future.
“Our objective is not simply to encourage innovation, but to enable its translation into scalable solutions that deliver real and measurable impact.
“This reflects GTCO’s role as a financial services platform that connects capital, capability, and creativity to drive sustainable progress,” the Managing Director of HabariPay, Ms Eduofon Japhet, stated.
The social coding event remains a cornerstone of HabariPay’s mission to foster creativity and problem-solving among emerging tech talents. Competing teams will leverage Squad’s advanced APIs to create scalable digital tools that address everyday challenges faced by businesses and individuals.
Through initiatives such as this, GTCO continues to position itself at the intersection of finance, technology and enterprise, actively shaping the future of digital transformation in Africa.
Banking
Easter: Ecobank Assures Customers Uninterrupted Banking Services
By Dipo Olowookere
Banking services will not be interrupted throughout the Easter public holidays, from Friday, April 3, to Monday, April 6, 2026, for any reason, Ecobank Nigeria has assured its customers.
In a message over the weekend, the member of Africa’s leading pan-African banking group, Ecobank Transnational Incorporated, said customers would continue to enjoy quality service delivery during the period.
It noted that its secure and robust digital platforms would remain fully operational to support financial activities during the festive period.
All digital channels, including the Ecobank Mobile App, Ecobank Business App, USSD *326#, Ecobank Online, OmniPlus, Omnilite, EcobankPay, Ecobank Cards, ATMs, PoS terminals, and over 35,000 Ecobank Xpress Point agent locations nationwide, will remain accessible throughout the holiday, the financial institution further said, urging customers to conveniently conduct transactions at any time using this wide range of digital solutions.
Ecobank customers were encouraged to maximise the bank’s alternative channels for transfers, bill payments, airtime purchases, card services, and account management.
They were also advised to stay vigilant by shopping only on trusted websites; avoiding the sharing of PINs, passwords, and one-time passwords (OTPs); refraining from banking on public Wi-Fi networks; being cautious of urgent or emotionally charged messages; and regularly monitoring their account activity.
“Customers will continue to enjoy a full bouquet of services during the holiday, including local and international funds transfers, bill payments, airtime top-ups, merchant payments, balance enquiries, account statements, and cardless cash withdrawals via ATMs,” the Head of Products & Analytics, Consumer & Commercial Banking at Ecobank Nigeria, Mr Victor Yalokwu, stated.
“We understand that festive seasons come with increased financial activity, and our priority is to ensure our customers enjoy fast, reliable, and secure banking wherever they are.
“Our digital channels are designed to support uninterrupted transactions, and we have strengthened our systems to guarantee optimal performance throughout the Easter break,” he added.
Mr Yalokwu noted that, “Ecobank remains committed to providing innovative financial solutions and exceptional customer service. We wish all our customers and partners a peaceful and joyful Easter celebration.”
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