What is the banking process of combining several loans into one new loan called?

The banking process of combining several loans into one new loan is called debt consolidation.

Debt consolidation replaces multiple debts with a single borrowing arrangement. For example, a borrower might use a personal loan to repay several credit-card balances, leaving one lender, one scheduled payment, and one interest rate. The new loan can make repayment easier to organize, although it does not automatically reduce the total amount owed.

The financial result depends on the new interest rate, fees, loan term, and repayment behavior. A lower monthly payment may simply reflect a longer term, which can increase total interest. Some consolidation products are secured by property, while others are unsecured.

Debt consolidation is not the same as debt settlement. Consolidation generally repays the existing debts through new borrowing; settlement attempts to negotiate a reduced payoff and can have different legal, tax, and credit consequences.