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Today, usage of loans isn’t restricted to just financing expenses like a property purchase or a business expansion. Personal loans offer unrestricted usage to meet various monetary requirements.
A growing number of people are availing credits to meet financial goals via credits from lenders by leveraging their current income generation capabilities. Simultaneously, there are a growing number of borrowers who have multiple EMIs with little to spare for their financial security and future investments.
If you are in a similar situation, a smart way to come out of it is to avail a debt consolidation loan for your convenience. A loan against property can help you club your existing debts into a single low-interest rate credit for a longer tenure. Additionally, it will save you from the trouble of tracking multiple EMIs at once.
Here’s a guide to how loan against property helps you in consolidating debts –
- Offers Greater Flexibility-
With a loan against property, you can avail loan amounts of up to 50%-70% or more of your property’s current value. Loans against property in India or anywhere else have no end-usage restrictions, so you can use the high-value loan amount easily to consolidate your debts conclusively.
You can consider availing a Loan against Property for Debt Consolidation offered by lending authorities like Bajaj Finserv. Avail loan amounts of up to Rs. 3.5 Crore as a self-employed individual or Rs. 1 Crore as a salaried applicant. This loan against property features affordable interest rates and easy-to-meet eligibility criteria. Enjoy flexible repayment tenure of up to 20 years.
Bajaj Finserv also brings you pre-approved offers on secured credits like home loans and unsecured advances like personal loans, business loans among numerous other financial products. These pre-approved offers ease the process of availing finances and save time as well.
- Relaxed Eligibility Criteria-
Loan against property eligibility criteria from top lenders are simple even for a secured loan. You can mortgage any immovable assets to avail such a loan. In case of a default, the lender can liquidate your mortgaged asset to recover the outstanding dues. Lenders are therefore more inclined to approve and disburse such loans without mandating stringent eligibility as there is less risk involved in a loan against property. However, you must know how not to default your loan against property to reap its benefits in full.
- Minimal Documentation And Low-interest Rates-
With considerably lower rates of interest, a loan against property seems an obvious choice for many. It helps in consolidating multiple high-interest debts requiring you to repay a single loan that too at lower rates of interest. Furthermore, the loan against property documents required are nominal, so you don’t have to fall into the hassle of procuring a loan against property.
You will only need to provide basic identification documents for ID proof and Address proof such as your Voter Card, PAN Card, Aadhaar, proof of employment or business, other than requisite property documents, which varies between lenders.
- Extended Repayment Tenure-
Most financial institutions and NBFCs provide loan against property tenure ranging up to 18 years for self-employed professionals and 20 years for salaried individuals. Such long tenure make repayment more convenient, especially in the case of debt consolidation.
Furthermore, if you avail a Loan Against Property from Bajaj Finserv, you can choose to benefit from their Flexi Loan facility. With this facility, you can withdraw a certain amount from your sanctioned loan and pay interest only on the amount withdrawn. You can also choose to interest only as EMIs as well as and repay the total principal borrowed at the end of the tenure.
So, if you want readily to erase multiple debts and increase your CIBIL score, avail a loan against property for debt consolidation in India. Increased CIBIL score poses great impact. If your CIBIL rating is low, then must learn how to improve credit score for future benefits while taking loan. Refer to lenders who provide the beneficial features to help you consolidate debts with a loan against property and help you repay the loan availed easily over time.
