Reasons to Consolidate your Debt with a Loan Against property

You might have taken various loans at different points in time to finance both your short and long-term requirements. Over the years, all of these debts have accumulated into a massive corpus at present. Now instead of juggling multiple obligations, you can clear them off with a Loan against Property for debt consolidation.

Debt consolidation is an effective way to clear all the existing debts conveniently and quickly. One of the effective ways to do that is to avail a loan against property in India. You can utilize a LAP to easily repay all your outstanding loan dues and pay a single EMI for this secured loan. It can reduce your loan obligation and multiple EMI payments at various deadlines into one single payment every month.

Let's take a look at how loan against property helps you consolidate all your existing debts –

1. Larger loan amount- If you're struggling to manage multiple monthly repayments, adhering to deadlines and EMIs over time, it can be a daunting task. It often results in you defaulting on your EMIs as you have to channel your income somewhere else. A high sanctioned amount is one of the most beneficial loans against property features.

2. Lower interest rates- Secured loan comes with a lower rate of interest compared to unsecured loans. LAP is no different. Lenders provide only a certain percentage of the total property value you have mortgaged. This percentage is known as LTV. For the lender, the credit sanctioned as a loan against property is a less risky prospect and therefore compels them to provide the loan against lower interest rates.

You can easily utilize a loan against property to consolidate your existing debt. LAPs may even come with lower interest rates than many other secured loans. 

3. Longer tenor- Top lenders offer loan against property tenors of up to 20 years. Longer tenors help you avail the most out of a loan against property. Longer tenors ensure lower EMIs although the cost of the loan is increased.

4. Quick processing- The loan against property eligibility criteria is relatively relaxed than most unsecured credits. This is because LAP requires one to mortgage one’s asset to avail the funds. So, in case you default, your lender liquidates your asset to recover the outstanding dues. Therefore, the risk is much lesser in case of LAP, which leads to quick loan approval from the lender's part. You can mortgage a diverse range of assets like your house, land or even a commercial space.

Where to apply for a LAP?

You can avail a Loan against Property from lenders like Bajaj Finserv to consolidate your debts. You can avail up to Rs. 1 Crore as salaried professionals and Rs. 3.5 Crore as a self-employed individual to consolidate multiple existing debts. Moreover, you can also avail a high-value top-up loan through a balance transfer over your existing loan against property. Furthermore, loan against property documents required by Bajaj Finserv is minimal. You also enjoy an extended repayment tenor of 18 years for self-employed and 20 years for salaried individuals.

Bajaj Finserv also brings you pre-approved offers on secured advances like home loans and unsecured credits like personal loans, business loans, among other financial products. These pre-approved offers streamline the process of availing finances and save time as well. You can check your pre-approved offer by providing a few necessary details.

Irrespective of the number or amount of debts, you need to repay them within time. A debt consolidation loan can replace all your financial burden with easier EMIs and simplify repayment schedule. Opt for lenders who offer the highest LTVs and better interest rates on the loan amount availed.