Debt consolidation offers you a way to clear all your existing debts quickly and more comfortably. One of the best ways to consolidate your debt is by opting for a loan against property. This loan is an effective,hassle-free solution that allows you to club and repay various debts, be it outstanding loans or credit card balances. This also brings down your loan obligation and management by reducing multiple EMI payments on different deadlines into one payment each month.
Take a look at 4 salient reasons that makes loan against property an easy help-at-hand for debt consolidation.
1. You can avail substantial fundsto pay off all debts
By pledging a property, you can claim and access a higher loan amount. Lenders base their loan amount approvalon the value of the property you pledge. With property prices on the rise,you are sure to get a high sanction of up to Rs.3.5 crorefor your high-value commercial or residential property. Once sanctioned, you can use this substantial amount to pay off all your loans at one go.
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. 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.
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