Three simple steps, from too many payments to one clear plan.
Enter your profile
Add your salary, each credit card (limit and what you owe) and any existing loans, or pull it from a saved DBR calculation.
Pick what to restructure
Choose which cards to close and which loans to buy out, and how much cash you would like in hand.
Get your plan
See the loan to take, your new single EMI, your improved DBR, and exactly what to ask your bank for.
A buyout, also called a takeover, balance transfer or debt consolidation, is when one bank gives you a single personal loan that pays off your credit cards and other loans. Instead of several minimum payments and high card interest, you consolidate everything into one predictable EMI, usually at a lower rate.
Closing cards also frees your Debt Burden Ratio (DBR). Banks count about 5% of every card’s limit as a monthly commitment, even if you owe nothing on it. Clear and close the card and that whole slice of your DBR comes back, so you become eligible for more.
This planner uses the same maths as the DBR Calculator and the Loan EMI Calculator, so every figure lines up with the way a bank would work it out. The DBR cap, card percentage, interest rate and fees are all editable, so you can match your own bank and country. Please check your own country’s bank policy before you decide.
Can I get cash on top of clearing my debts?
Often yes. If your DBR allows, the loan can be bigger than your total debts, and the extra is cash in your hand. The planner shows the maximum you can safely take.
Will a loan buyout affect my credit score?
Applying for any new loan adds a search to your credit file, and closing old cards changes your history a little. In most cases, replacing several debts with one loan that you pay on time is good for your score over the following months, because your total balances and your risk of a missed payment both go down.
How long does a buyout or takeover take?
It depends on your bank and on how you handle the paperwork. If you request a liability letter for the loans or cards you are settling, the new bank can pay them off and your old bank usually issues the closure or clearance letter within about a week, so your cash in hand or final approval comes through quickly. If you close a credit card without a liability letter, some banks can take up to about 45 days to issue the No Objection Certificate (NOC), and if your salary is transferred, your HR may not release a new salary transfer letter until that NOC arrives. To avoid a long wait, it is usually safest to request a liability letter for everything you are settling. Timelines vary by bank and by country, so always confirm with your own bank.
Do I always need a liability letter?
Not always. If you only have credit cards and you take the buyout from your current salary bank, the bank will often accept your latest card statement and a screenshot of the exact outstanding from the bank app instead of a liability letter. If you take the buyout from a different bank, that bank may ask for a liability letter for your cards. For any actual loan you are buying out from another bank (personal, auto, mortgage or other), a liability letter is normally a must. As a safe habit, request a liability letter anyway, because it makes your old bank issue the closure or clearance letter much faster. Rules differ from bank to bank and country to country, so please check your own bank’s policy.
What is a salary transfer letter (STL), and when do I need one?
A salary transfer letter tells a bank that your salary is paid into an account with them, and most banks need it to approve a new loan. If instead you take a top-up on your current loan or restructure it, a salary certificate is usually enough, because you already provided an STL when you first took the loan. If you move your loan to a new bank, your HR will normally ask for a clearance or No Objection letter from your current bank before issuing a fresh STL, which is another reason to request the liability letter early. This is general guidance, so confirm the exact requirement with your own bank and employer.
Do I have to close all my credit cards?
No. You decide which cards to close and which to keep. Closing a card frees the 5% of its limit that the bank counts against your DBR, but you can keep a card open if you still use it. In the planner you can switch each card between keep and close to see the effect instantly.
Can I take over a loan or card from another bank?
Yes. A takeover, also called a balance transfer, is when a new bank pays off a loan or card you hold at another bank and gives you one fresh loan. It is a normal way to move to a lower rate and a single monthly EMI.
What documents will the bank usually ask for?
Most banks ask for your national ID, passport and visa or residence proof, a salary certificate or recent pay slips, and a few months of bank statements. For a buyout they also request liability letters, or at least the latest statement, for the cards and loans you want to settle. Requirements vary by bank and country, so check what your own bank needs.
What if my DBR is already above the cap?
If your Debt Burden Ratio is over the bank’s cap you may not qualify for extra cash, but a buyout can still lower your monthly payment. Closing cards and choosing a longer tenure both bring your DBR down, and the planner shows you exactly what fits under the cap.
What is the “security” banks mention in a liability letter?
Banks sometimes ask for a little more than your balance as security. This extra amount is refundable once the card is settled and closed.
Is my data safe?
Everything is calculated in your browser. Nothing is sent anywhere unless you choose to save it to your account.
These figures are estimates for education and guidance only. Bank policies, interest rates and fees are different at every bank and in every country, so please check your own country’s bank policy and confirm the final numbers with your bank or a licensed advisor before you decide.