With the advent of instant credit applications and free credit cards, accumulating debt is easier than ever. While credit can help you achieve goals, having more debt than you can manage can easily be a hindrance to your financial growth. A loan against property for debt consolidation in India is an exceptional solution that helps you deal with your debt crisis. You can use it to consolidate all your debt without exerting any unnecessary pressure on your finances.
It is also convenient to avail of as the loan against property documents required are simple and few. For instance, your identity proof, address proof, property deeds and income statements will suffice for your application, which complements the relaxed loan against property eligibility criteria.
To help you better understand how this loan can work for you, here are 4 benefits of debt consolidation using a loan against property:-
Offers ample sanction to comfortably consolidate large debt
When you’re thinking of consolidating your debt, you need to look for an option that comfortably encapsulates all your debt. A loan against property is well equipped to do just that because of its secured nature and the ample sanction amount. Lenders offer amounts from lakhs to crores as per the value of your property, and this can easily clear up a major chunk of your debt, if not all of it. For example, the Bajaj Finserv debt consolidation loan offers a sanction that can go up to Rs.3.5 crore, and you can have this amount disbursed to you within 4 days of approval.
Has lenient eligibility criteria and minimal documentation
A key benefit of opting for a loan against property for debt consolidation is the ease of access that you enjoy. If you choose the right lender, this loan is easy to avail of and requires minimal effort. Typically, to be eligible you need to be a salaried individual between 33 and 58 years of age. You must own property in one of the major cities in India and you must meet the minimum annual salary amount set by the lender. This amount varies according to the lender and the city you reside in. The documentation for a loan against property is also fairly simple. You only need to provide identity proof, address proof, proof of property ownership and proof of income.
Facilitates repayment through affordable EMIs and a flexible tenor
When considering debt consolidation, your main goal should be to opt for a loan that is affordable to repay. One of the key features of a loan against property is its affordability and this is all due to its secured nature. Depending on the value of the property, lenders have a security to rely on in case of default, and offer a more suitable interest rate, which translates to low EMIs. Additionally, you enjoy flexibility with your loan against property tenor as it can last up to 20 years. The combination of low EMIs and long tenors amounts to easy loan repayment.
Gives access to additional funding through the Flexi facility
A benefit that is exclusive to the Bajaj Finserv Loan Against Property, this feature allows you to borrow from your sanction at any time, whenever you need funds. The best part about this is that you are only charged interest on the amount you utilise. So, you can access these funds at any time without needing to apply for a fresh loan, be it for new debt you may acquire or for any other purpose.
Furthermore, you can choose between a fixed or floating interest rate for your loan, and benefit from zero foreclosure charges on a floating interest rate loan against property.
As you can tell, using a loan against property for debt consolidation is not only beneficial, but also economical. This is especially true when you opt for a loan offer from a top tier lender like Bajaj Finserv. In addition to affordable debt repayment, you get access to loan against property features like the Flexi Loan and fast disbursal that add immense value to your borrowing experience. To unleash the full potential of your asset, check your pre-approved offer online for a customised loan against property deal.
Additional Read: How Loan Against Property Beneficial for Higher Education?