The process of combining one or more loans into a single new loan.

Merriam-Webster Online Dictionary
consolidation (noun)
1.
the act or process of the state of being - consolidating consolidated
2.
the process of uniting the quality or state of being united , specifically the unification of two or more corporations by dissolution of existing ones and creation of a single new corporation
3.
pathological alteration of lung tissue from an aerated condition to one of solid - consistency