4 reasons why a loan against property helps in consolidating existing debts

2.You get the loan on lower interest

Since lenders have your property as collateral, they not only
sanction you a large corpus of funds, but also charge you a low rate of interest on loan against property. As pledging a property give the lender security and assurance, they are more willing to negotiate interest rates. Using this loan to consolidate your multiple high-interest loans will reduceyour repaymentburden.

3. You can repay the loan within a long tenor with ease

One of the most important benefits of a loan against property is the lengthy tenor it offers. Choosing a longer tenor will help you minimise yourmonthly EMIs. This will give you enough room to save parts of your income for unplanned and urgent expenses. In order to make your repayment convenient, choose a lender that offers you a Flexi Loan facility too. Bajaj Finserv’s Loan Against Property is one such option, that allows you to repay funds through a long tenor of up to 20years.

Apart from that if you choose the Flexi Loan facility, you can withdraw funds from your sanctioned limit as per your requirement and pay interest only on the amount you withdraw. Further, you can choose to pay interest-only EMIs andrepay the principal amount at the end of tenor. You can also make prepayments at no cost to reduce your liability and re-avail the prepaid amount too.

4. You can pledge any type of property to avail the loan

You are eligible to avail a loan against property by pledging diverse properties ranging from yourpresent home, to an office space or vacation home you own. This helps you weigh the prices of the properties you own based on their current valuation and then choose the right one. This increases your chances of getting a decent amount to match your current debts.
Don’t leave debts unsettled. Instead, choose a property of your choice and pledge the same to consolidate your debt and repay it conveniently.