High debts can take a toll on the finances of borrowers and can also affect their future financial plans. Under such circumstances, the escalating EMIs, along with the elevated interest rates, may put a financial strain on one’s budget. However, there’s another way to repay debts conveniently with Debt Consolidation loan against property..
Loans for debt consolidation are designed to consolidate all existing debts with varied interest rates into a single debt with a lower rate of interest. This makes the repayment of loans convenient and quicker. Moreover, it also helps one to boost his/her credit score.
Here’s why borrowers prefer to avail loan against property in India for debt consolidation –
- Low Interest Rates
The loan against property interest rates are lower as compared to that of the other unsecured loans like personal or business loans. This is because of its secured nature and the LTV percentage only 70-75% of the current market value of the mortgaged property.
With lower interest rates, it becomes easier to repay the EMIs in time. This timely repayment holds a positive impact on the CIBIL score, which is beneficial in the long run.
- Easy to Avail
Loan against property is a secured loan, so borrowers need to mortgage a property to draw credit against it. In the case of default, the lending institution can liquidate the mortgaged asset and recover the outstanding dues.
Borrowers can avail a Loan against Property from NBFCs like Bajaj Finserv despite a modest credit score to clear existing debts and make the repayments hassle-free. However, most reputed NBFCs require their borrowers to possess a stable income and a dispute-free property to fulfill the loan against property eligibility criteria.
With a loan against property from Bajaj Finserv, borrowers can enjoy quick loan approval and fast disbursal with minimum documentation. Moreover, one can also have the benefits of lower rates of interest and a higher loan amount of up to Rs. 1 Crore (for salaried) or Rs. 3.5 Crore (for self-employed). Also, borrowers can draw the benefit of the offered loan tenure of up to 20 years.
Bajaj Finserv also brings you pre-approved loan offers on personal loans, business loans and home loans among other financial products. These pre-approved offers ease the process of availing finances and further save your time as well.
- No End-use Restriction
Loan against property features include zero end-user restrictions. One can use it to meet numerous expenses like – expansion of business, funding higher education, medical emergencies, weddings, etc. Following the disbursal of the loan amount, one can use this considerable sum as per his/her requirement – consolidation of multiple small debts also being one of them.
- Loan Against Property Tenure
The tenure period for loan against property varies from 5 to 20 years, depending on the loan amount, borrower’s repayment capacity, etc. This, in turn, prevents a borrower from getting burdened with monthly repayments. This is how loan against property helps one to consolidate all their existing debts.
- Flexibility With The Loan Amount
With a loan against property in India, borrowers can enjoy flexibility with their loan amount. Depending on the property, lenders may grant up to 80% of the current market value of the property in accordance with your income and repayment abilities.
Additionally, loan against property from reputed lenders come with zero charges on pre-closure or part prepayment. So, in case borrowers have some extra money in hand, they can foreclose the loan without any additional charges before the end of the tenure.
Must Read: What is Mortgage Meaning?
Documents Required For Loan Against Property
The basic loan against property documents required are –
- Identity proof
- Address proof
- KYC documents
- Bank account statements of the previous 6 months
- 3 months of salary slip
- 3 years of IT returns (salaried persons)
- Profit and loss balance statements from the past 3 years for self-employed individuals
Loan against property for debt consolidation is thus an effective way to repay multiple financial debts.