Is it smart to take a loan to clear other loans?

Short answer
It can be smart, but only in specific situations. Taking a new loan to clear old loans works only if it actually reduces cost and stress.

When It Makes Sense

If you have multiple high-interest loans like credit card dues or short-term personal loans, consolidating them into one loan at a lower interest rate can help. One EMI is easier to manage than many. Interest kam hota hai and cash flow thoda smooth ho jaata hai.
Yeh tab useful hai jab new loan ka rate clearly lower ho and tenure sensible ho.

When It Is a Bad Idea

If the new loan interest is similar or higher, you are just shifting the problem. Also, extending tenure too much may reduce EMI but increase total interest paid. Loan clear ho raha hai jaisa lagta hai, but debt actually lamba chal jaata hai.
Agar discipline issue hai, consolidation bhi help nahi karega.

Things to Check Before Doing It

Compare total interest, not just EMI.
Check processing fees and prepayment charges.
Make sure you do not start using credit cards again after consolidation. Yahin pe log trap mein phir se phans jaate hain.

Credit Score Angle

Consolidation itself is not bad for a credit score. In fact, fewer EMIs and timely payments can help. But too many loan applications in a short time can cause a temporary dip. Balance zaroori hai.

A Smarter Approach

Clear the highest-interest loan first if possible. If consolidation gives real savings and peace of mind, go for it. Otherwise, slow and steady repayment is better.

Final Takeaway

Taking a loan to clear other loans is smart only when it reduces interest and simplifies repayment. EMI kam lagna enough nahi hai. Numbers clear hone chahiye and spending control mein rehna chahiye.