Debt consolidation is a popular financial jargon, and for good reason. Debt consolidation is the process of compressing all your ongoing EMI obligations (be it a car loan, a personal loan, or even a gold loan) into one EMI, eliminating the hassle of keeping up with numerous repayments.
One essentially achieves this by borrowing a bigger loan and using the sanctioned amount to repay all the other ongoing loan obligations, subsuming the other EMIs into one monthly payment. This approach is cost-effective as it streamlines your EMI outgo and substantially limits what you pay as interest on several loan accounts.
Loan Against Property: The Best Tool for Debt Consolidation?
Individuals serious about consolidating their ongoing debts should consider availing of a loan against property to help their cause. A loan against property allows eligible applicants access to big-ticket-sized sanctions such as Rs. 5 Crores, or higher, depending on their profile verification and needs. A loan of this size can help you prepay and close all your loan accounts and consolidate their EMIs into one loan against property EMI – which is substantially more feasible for your repayment capacity.
By availing of a loan against property for debt consolidation, here are the ways you will benefit:
1. The loan against property lets you foreclose your other debt obligations faster, helping save on the interest that would have otherwise accrued over the remaining repayment tenor.
2. You streamline your repayment obligations by removing the need to pay numerous EMIs throughout the month. As you repay your other loans, you absorb their EMIs into just one for the loan against property which you have to pay just once a month, making way for a more simplified repayment schedule.
Debt consolidation not only curtails your total interest outflow but also helps you boost your credit score by ensuring repayment before time. Having a strong credit score is imperative for future loans or other investments that require it, and to help make this achievable, a loan against property may be the best suited financial tool.
Loan Against Property: Prominent Features
Be it to consolidate your debt or to address other sizeable expenses that you may have, a loan against property is an ideal funding solution. Individuals can use the loan amount as they please, as there are no end-use restrictions on it, unlike other loans such as a home loan or car loan. You can use it for business expansion, overseas education, funding your wedding or vacation, or even footing expensive medical bills. Here are some of the features of a loan against property that makes it a compelling loan option for many:
1. Competitive Interest Rates
Loan against property is a secure loan granted against a property collateral that acts as a security for the lender. This enables lenders to offer competitive interest rates on attractive lending terms. Leading lenders offer loans against property starting from an interest rate of 8.60% p.a. to eligible applicants.
2. Flexible Repayment Tenor
When one receives a sizeable loan sanction, it is only sensible that they are allowed enough time to service the loan at their own pace. The repayment tenor for loan against property can stretch up to 18 years (depending on your financial stability and repayment capacity), allowing you to pay reasonably sized EMIs without stretching your finances too thin.
3. Considerable Loan Sanction
Another advantage of having mortgaged your property as collateral for a loan against it is the sizeable loan sum it allows you. The loan amount extended to you is scaled against your property’s value, making it more considerable in size, than what a personal loan can offer. This is especially beneficial for those who have big-ticket expenses lined up, such as a wedding or a business expansion. It also makes a loan against property a fitting fund solution to debt consolidation.
Apply for a Loan Against Property Today
Having gone through all the features and benefits of a loan against property, perhaps you’re more inclined to avail of one to consolidate your debts or address other expenses now. The application process for a loan against property is simple and easy to navigate and most lenders guarantee disbursal within 3 to 4 days from the time of loan approval and document verification. If you need immediate funding or sizeable funding, a loan against property is what you should consider.
