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Loan Against Property for Debt Consolidation

Loan Against Property for Debt Consolidation: Features and Benefits

Consolidate all your existing debts with a Loan Against Property and make the repayment process more convenient and affordable.

  • Loans up to Rs. 3.5 crore

    Salaried individuals can avail a loan of up to Rs. 1 crore, while self-employed individuals can access a loan of up to Rs. 3.5 crore.

  • Minimal documentation

    With the fastest Loan Against Property from Bajaj Finserv you can get loan disbursal within 4 days. All you need to do is submit the required documents to our representative. You also get the convenience of doorstep service.

  • Flexible Tenors

    Choose a tenor of up to 18 years, if you are self-employed individual. Salaried individuals can select a tenor between 2 to 20 years.

  • Flexi Loan Facility

    Borrow as many times as you need with a single application through this facility. What’s more, you pay interest only on the amount utilised. Manage your finances better with interest-only EMIs for the first few years.

  • Easy Balance Transfer Facility

    The process to transfer your existing Loan Against Property is simple. You can also avail a high-value top-up loan with Bajaj Finserv.

Loan Against Property Eligibility Criteria

Salaried or self-employed, you can easily avail a Loan Against Property from Bajaj Finserv. The eligibility criteria for a Loan Against Property are simple and require you to fill out only some basic documents.

Loan Against Property Fees and Charges

You can avail a mortgage loan for debt consolidation at affordable loan against property interest rates. All financial services from Bajaj Finserv are available at minimal processing and administrative charges. You can part-prepay or prepay your loan anytime at negligible charges.


Also Check: What Is Debt Consolidation

Loan Against Property– How to Apply

Apply for a Loan Against Property for Debt Consolidation by following these steps:

step 1

Fill the online form.

step 2

Our representative will get in touch with you within 24 hours.

step 3

Get approval for your loan in 48 hours.

step 4

Submit your documents to our representative.

Loan Against Property for Debt Consolidation FAQs

What is Debt Consolidation?

Debt consolidation is a process where a borrower takes a loan to pay-off multiple smaller debts. It is a common process to clear short-term, high interest debts like multiple credit card bills, consumer debts, etc.

There are several advantages of doing debt consolidation to clear your existing loans. Multiple lines of credit are likely to draw more interest, as each will be charged individually. On the other hand, loan against property debt consolidation loans charge an affordable rate of interest, which helps keep the total payable amount within a reasonable limit.

Moreover, you will also have the chance to choose from unsecured and secured loans for consolidation. Advances such as loan against property for debt consolidation can be used to clear larger debts. These credits disburse a substantial amount of money as the borrower mortgages his or her property to avail the funds. The loan repayment tenure is also considerably longer in this case.

In case your existing debts are lesser in value, you can easily apply for a personal loan for debt consolidation against basic loan against property eligibility and simple documentation requirements.

How To Avail Debt Consolidation If I Have Bad Credit?

Financial institutions prefer applicants with a CIBIL score of 750 or higher to disburse credits. Individuals with a score lower than that might have a higher chance of facing rejections or may have to pay a higher rate of interest.

Moreover, mortgage loan come with an affordable loan against property interest rates, keeping the payable amount within a reasonable limit. Longer repayment tenure of loan also helps to repay the debt without straining one’s finances.

You can also avail loan against property for debt consolidation if you have lower than average credit score. These advances are disbursed against a mortgaged property, substantially reducing the associated risk. Lenders are likely to offer such credits even if you have a poor credit score.

However, once they clear all existing debts with a debt consolidation loan and then repay the borrowed funds in easy EMIs throughout the tenure, CIBIL score will improve and allow them to borrow funds at more affordable terms in future.

What Is The Difference Between Debt Consolidation And Debt Consolidation Loan?

Debt consolidation is a process of consolidating multiple lines of credits into a single one. You can utilise your savings to pay off the existing debts, or avail a purpose-made line of credit to secure the funds.

In this case, you may not have to borrow money from any lender to pay the debts. You can allocate your past savings and budget your income to clear the due amount.

However, you should refrain from this process if you already have high financial liabilities. It can strain your personal finances if you do not have a high repayment capability. In such situations, it is better to consider a credit to pay off any existing credit.

A debt consolidation loan is a particular financial product that a borrower might avail to pay off all existing loans. You can consolidate all your monthly obligations and repay them using the funds secured through this form of credit. It makes repayment simpler as you will pay interest only on a single loan. Also, you will not have to keep track of multiple repayment schedules, which are likely to eliminate chances of accidental delays in payment. It will also amortise your debt for a longer time span and thus make your repayments convenient.

There are several financial institutions that offer loans for debt consolidation. These include both Government-backed and non-banking financial companies. You can avail both unsecured credits like personal loan as well as secured credits like loan against property for debt consolidation, allowing you to select a particular product according to your financial requirement, repayment capability, and preferred loan tenure.

What Are The Types Of Debt Consolidation?

There are multiple means of debt consolidation. One can avail a purpose-build credit to pay off the loan or can avail advances with no end-usage restrictions to do so.

Here are some of the most popular methods in Indian economy for debt consolidation:

  • Personal Loans –
    Personal loans are unsecured credits that come with no end-usage restriction. That makes it ideal as a debt consolidation loan. Most financial institutions offer a large sum, up to Rs. 25 Lakh as a personal loan, providing adequate funds for a borrower to repay multiple small lines of credits. Moreover, personal loan interest rate is relatively lower than other short-term advances, making it ideal for anyone to consolidate the debts at an affordable rate of interest.
  • Loans Against Property –
    Secured loans like loan against property for debt consolidation is preferred when the total due amount is substantially larger. Unlike personal loans, lenders disburse these credits against a mortgaged property, which lower the associated risk. Lenders charge an even lower rate of interest on these loans compared to unsecured credits and allow longer repayment tenure as well.

    A property loan also comes without any end-usage restriction, making it ideal for debt consolidation. It is better suited to consolidate multiple larger loans, including unsecured credits, because of its substantial amount of disbursed funds. One can get up to Rs. 3.5 Crore as an advance if they opt for this type of credit.

    These are the two primary types of debt consolidation used in India. Both are ideal for specific situations; unsecured credits can be utilised to clear multiple credit card dues, utility, or other types of smaller dues, whereas a loan against property can be used to clear larger debts.

How Does Debt Consolidation Work?

Debt consolidation works by opening a new line of credit that offers adequate funds to repay the existing ones, and then make monthly payments towards the single line of credit.

It is one of the most common methods used to pay off multiple existing debts. Short-term high interest debts like credit card dues can accumulate into a significant amount. If someone owns multiple credit cards and have debts in all of them, he or she can take a debt consolidation loan and repay the amount within the due dates.

These loans usually attract less interest than other types of advances, making them ideal for someone who wants to reduce the financial burden of carrying multiple lines of credits. These also come with longer repayment tenure, allowing a borrower to repay the debt without straining his or her finances.

There are several financial institutions that offer such loans to eligible applicants. Moreover, both public and private financial companies offer secured and unsecured loans to consolidate existing debt, providing more choices for an individual.

Unsecured credits like personal loans can be used to consolidate debt as well. These do not have any end-usage restrictions, allowing the borrower to utilise the funds as and when needed. Personal loans also carry an affordable rate of interest than credit cards. It thus reduces some of the financial burden during repayment.

A longer tenure also helps manage one’s finances efficiently.

Borrowers can also avail a loan against property for debt consolidation if they require larger funding. These credits are provided against a mortgaged property, allowing the lender to disburse a larger sum of money for a longer repayment tenure. The lower associated risk also ensures that these secured credits attract less interest rate than another form of advances.

What Are The Documents Required To Avail A Debt Consolidation Loan?

The necessary documents that you will require includes –

  • Identity Proof – Submit a valid Government-issued identity proof while applying. KYC documents like Aadhaar, Voter ID, along with PAN card, driving license, etc. will be accepted as identity proof.
  • Address Proof – To prove your residency, you will have to submit an address proof along with other documents while applying for a loan for debt consolidation. These can be your Aadhaar, Passport, post-paid phone bills, electricity bills, etc.
  • Proof Of Income – Lenders ask for copies of salary slip as well as bank account statement for the past 3 to 6 months to evaluate your income, obligations, and repayment capability.
  • Proof Of Employment – They ask for a copy of one’s employee ID card or other proof of employment during verification.

    Lastly, if you apply for loan against property for debt consolidation, you will also have to submit ownership documents for the property you wish to mortgage.

Debt Consolidation Myths - Top 3 Myths Everyone Should Know

The myths involved with debt consolidation loan are:

  1. It Is Bad For One’s Credit Score – It is a misconception that process of consolidating or availing a debt consolidation loan reduces your credit score further. On the contrary, it helps you to know how to improve credit score. Your creditworthiness improves as you pay off multiple lines of credits. Making repayments and foreclosure in time increases your credit rating as well.
  2. It Costs More – This process is significantly more affordable than paying interest on every single existing debt together. The borrower thus saves a substantial amount while making the repayment.
  3. It Takes Time – If you apply for a loan against property for debt consolidation, which involves verifying documents like property ownership papers, it is likely to get approved within 3 to 4 working days.