4 Reasons to Apply for a Loan Against Property for Debt Consolidation

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Meeting the rising expenses, or going for high-end expenditures often requires external financial assistance. These are best solved by unsecured advances provided by various financial institutions. The amount so acquired from multiple loans meets the monetary requirements of individuals.

However, the major issue with such loans is the high interest rates charged upon each credit individually. This results is multiple higher EMIs, and hence, the borrower ends up in a financial mess. A preferred solution to these scattered expenses is via debt consolidation loan.

While the repayment of multiple loans is efficient in paying off debts and acts up on the credit score, it results in a low monthly budget due to numerous EMIs. Whereas, a loan against property helps a borrower with the convenience of paying off all the existing debts with –

  • only one monthly instalment as against the multiple ones

  • low interest rate and hence, low EMI amount

Since loan against property from various financial institutions come with borrower-friendly features and easy-to meet eligibility criteria, borrowers often find it more preferable for debt consolidation. Given below are some of the advantages of loan against property for debt consolidation.

Benefits of Loan against property in consolidating debt

Thanks to reputed NBFCs, a loan against property in India is readily available for debt consolidation. These credits come with numerous features and help the borrower in paying off multiple debts. However, despite the popularity of this credit, it is essential that borrowers make an informed decision while applying.

Here is why loan against property is the best go-to for debt consolidation-

  1. Offers lower interest rate: In the case of a loan against property, lenders are willing to provide a substantial amount at a lower interest rate (hence lower EMIs). This is because they have the reassurance of repayment due to the property mortgaged by the borrower. Thus, using these credits to repay several high-interest loans would help in reducing the burden of loan repayment.

  2. Provides higher credit amount: Considering this a high-end investment, lenders look into the property papers and the creditworthiness of the individual. Once borrowers meet these criteria, they can avail loans for up to Rs. 3.5 Crore provided the value of the property is more. This amount can take care of the repayment process in a more affordable manner.

  3. Offers extended tenor for loan repayment: While individual smaller personal loans come with a shorter tenor (and hence higher EMIs), the loan against property tenor is more extended. This helps borrowers repay the loan amount spread across a longer time (up to 240 months).

  4. Requires no high credit score: In case of loan against property, a high credit score (750+) is not mandatory because lenders have the assurance of the mortgaged property. This makes the loan convenient to avail, and hence, this credit is widely preferred for debt consolidation.

Thanks to reputed financial institutions like Bajaj Finserv, Loan Against Property for debt consolidation is gaining further grounds due to their multiple user-friendly features and minimal documentation requirements.

  1. Features:

Borrowers prefer Bajaj Finserv to consolidate existing debts, because of the following lucrative loan against property features.

  • High-value credit amount of up to Rs. 3.5 Crore.

  • Flexi Loan facility.

  • Easy balance transfer facility.

  • A flexible tenor of up to 240 months.

  1. Documents

The loan against property documents required are as follows-

  • Address proof.

  • KYC documents.

  • IT returns.

  • Documents of the to-be mortgaged property.

  • Bank account statement of the last 3-6 months.

  • Latest salary slip.

Additionally, Bajaj Finserv brings you pre-approved offers on loan against property, business loans, personal loans, and many such financial products. These offers not only ease the application process to avail finances but also save your time. All that you need to do is provide a few essential details to check your pre-approved offers.

The easy-to-meet loan against property eligibility criteria, attractive interest rates, and nominal documentation help in the quick approval and disbursal of the loan amount. This makes loan against property the best option for debt consolidation.

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