In terms of Banking Industry, Consolidation Loan refers to __:

In terms of Banking Industry, Consolidation Loan refers to __:
[A]Taking a loan from more than one banks
[B]Combining the loans taken from different banks into a single loan account
[C]Taking loans to pay a previously unpaid loan
[D]Taking loans by mortgaging real estate

Combining the loans taken from different banks into a single loan account
A person, if owes money to several creditors, he / she can combine payments and balances into a single account with one creditor. This is called Loan Consolidation or Debt Consolidation. This can be done in several ways. For example, one can transfer several high interest credit card balances onto one card with a lower rate. If one owns a home, , he / she can consolidate the debt with a low-interest home equity loan. Or, can get a loan specifically designed for this purpose.

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