A loan against property is a multi-purpose loan that you can use to fund any pressing need, including mounting debt. In fact, for this very purpose, a loan against property for debt consolidation serves as a cost-effective lifeline. It offers ample funding for a long tenor, at a low-interest rate. These loan against property features allow you to get out of debt easily, without any stress.
Here’s a closer look at why you should use a loan against property to consolidate debt.
Obtain a high loan amount to clear all outstanding dues
A loan against property offers substantial funding so that you can clear all your debt in one go. This means if you are currently servicing debt from a personal loan, a car loan and a credit card, for example, you can use a single loan against property to clear the total amount.
At present, Bajaj Finserv is one of the best debt consolidation loan providers as it offers to finance to the tune of Rs.3.5 crore that you can use to consolidate debt. Once you meet the eligibility terms and submit the loan against property documents required, Bajaj Finserv offers financial assistance in just 4 days.
Manage your finances better with a lower interest rate
If you have substantial outstanding debt, you are likely to have to pay a high-interest rate, in addition to penalties and penal interest if you delay or default on repayment. This means that your EMIs can escalate quickly and drain your finances in no time at all.
By taking a loan against property, you can eliminate this worry. All you have to do is make sure that you meet the lender’s loan against property eligibility criteria before you apply, as the higher, your credit score is, the lower is the interest rate that you can secure. Moreover, by reducing your debt-to-income ratio, you will be able to better your credit profile too.
Manage your new debt by paying just one EMI a month
When you have many loans to clear at once you have to keep track of multiple payment deadlines. For instance, you may have to pay the personal loan EMIs by the 5th of the month, car loan dues by the 10th and pay your credit card bill by the 15th of each month. By taking a loan against property for debt consolidation, you only have to keep track of a single EMI. This keeps stress and anxiety at bay and makes repayment infinitely simpler.
Stretch the tenor to reduce your immediate financial burden
Lenders like Bajaj Finserv allow you to extend your loan against property tenor to up to 240 months or 20 years. What this means is that while you can pay off your outstanding debt in one go, you can repay the loan against the property itself comfortably, as a long tenor implies lower EMIs.
Prepay your loan without worrying about hefty charges
After you consolidate your debt and your finances recover, you can consider prepaying your loan, provided your lender offers favorable repayment terms. Typically, loans with a floating rate of interest allow you to make prepayments at zero additional charges.
In addition, Bajaj Finserv offers you a unique loan against property feature that makes the task simpler. For instance, when you avail of the Flexi Hybrid facility, you get the freedom to borrow from your sanction on the go and pay interest only on the portion you utilize. You can also pay interest-only EMIs for a part of the tenor and repay the principal later on. This will help you combat debt speedily and ease into repayment slowly.
To obtain one of the most versatile loans against property in India even quicker, check your pre-approved offer from Bajaj Finserv. By doing so you can unlock access to customized financing, as well as instant approval and disbursal.
Additional Read: How debts consolidation loan can help you with your existing debts