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5 Steps To Getting Out Of A Debt Trap Using A Loan Against Property

  • Highlights

  • With loans against property you can clear high-interest debts affordably

  • Long tenors imply lower monthly instalments (EMIs)

  • Low interest rates reduce the strain on your finances

  • Loan Against Property Balance Transfer make repayment simple and economical

A debt trap refers to a financial situation in which repaying borrowed finances becomes extremely difficult, primarily because of huge outstanding amounts and increasing repayment charges. If you find yourself with a load of debt too difficult to carry, consider obtaining financial help from a loan against property. This asset-backed loan allows you to get a large loan amount at cost-effective interest rates and thereby helps consolidate and get out of debt easily. Here are 5 steps to getting out of a debt trap using a loan against property.

Clear High Interest Debts More Affordably

If you are wondering how to get out of debt, then the most common advice given is to pay off the debts that cause you to incur the highest interest first. For example, you can prevent your debt from growing uncontrollably by paying the outstanding balance of a credit card having a high APR with a loan against property having a nominal interest rate.

Transfer Existing Loans Against Property To Lessen Your Interest Payments

Loan against property interest rates differ from lender to lender. So, if you know of a lender offering a lower rate, consider transferring your LAP.

This will bring down your EMIs and leave you with more finances to get out of debt quickly. One economical mortgage or property loan you can avail of is the Bajaj Finserv Loan Against Property.

Stretch The Loan Against Property Tenor To Reduce Your EMIs

By paying the loan over a larger tenor you reduce the monthly burden on your finances. So, while you use a mortgage loan to consolidate your debt in one go, you can pay back affordably and without financial strain. However, when doing so, choose the shortest possible tenor as it will keep interest payments to a minimum.

Home Loan under PMAY yojana | Bajaj Finserv

Consider Opting For A Floating Interest Rate Loan Against Property

If you foresee that you may have surplus finances in the future, weigh the pros and cons of taking a floating interest rate mortgage loan. This type of loan usually gives you the benefit of prepaying and foreclosing your loan at no extra charges.

Make Repayment Even Easier By Opting For A Flexi Loan

Taking a loan against property with Flexi Loan facilities from Bajaj Finserv may be the best way to get out of debt affordably. It allows you to borrow from your sanction in parts and pay interest only on the amounts utilised. This way, you are never overspending on property loan repayment.

Additional Read: 4 Reasons Why A Loan Against Property Helps In Consolidating Existing Debts

Further you can prepay and even foreclose your loan at zero extra fees and make interest-only EMI payments during the start of the term. You can thus get out of debt easily by starting off with small EMIs and ramping up your payments as you can. To get this loan against property on simple eligibility terms, check your pre-approved loan offer from Bajaj Finserv. A quick, 1-step verification will give you instant approval on personalised deals.

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