New Delhi, Feb. 27 -- When you are planning to raise a personal loan, and are worried over its high interest rate, you can follow a simple strategy. You can blend it with another loan for a range of benefits such as low interest rate and easier eligibility, among others.

Let us understand how it works. Suppose you need Rs.10 lakh personal loan for home renovation then you can use Rs.6 lakh as home loan and the remaining Rs.4 lakh as personal loan. Alternatively, if you have a current loan of Rs.7 lakh and now need another Rs.3 lakh - then you can take a top up loan on the current loan instead of applying for a fresh personal loan.

Here we describe the key advantages of clubbing multiple loans into one:

1. Lower interest rate: Home loan...