With different monthly payments on different dates, paying off multiple loans often becomes difficult. Here, the easiest route to hassle-free repayment is debt consolidation, i.e., combining all your debts into one loan.
Broadly, debt is of two types – secured and unsecured. Unsecured loans come with stringent eligibility and high-interest rates. On the other hand, secured loans like loans against property offer a higher amount and are available against relatively flexible eligibility criteria.You may opt for Loan Against Property for debt consolidation, merge all outstanding balances into a single loan, and repay with ease.
This will help in ensuring financial stability by reducing interest expenses. A debt consolidation loan also removes the hassle of repaying multiple loans at a time. For example, you can apply for a new loan by mortgaging property and use the amount to pay off all your credit card bills, personal loans, and other existing liabilities. A loan against property is the best option for debt consolidation when the current obligations are large.
The incredible growth of the Indian banking and financial services sector in recent years has not only made finance more accessible but has also brought a wide range of financial products and services for customers to choose from. As the market matures with each passing day, consumers are getting the added benefit of rationalizing and planning credit sources and products to optimize the cost of portfolio lending.
One such innovative debt consolidation strategy is torationalize expensive and unsecured debt sources such as Personal loans or Credit Card outstanding with secured debt which is often available at much lesser interest cost.
Thus, one can take a Loan Against Property (LAP) covering one's outstanding portfolio debt, allowing the individual to close costly unsecured loans such as personal loans or credit card dues. It helps in reducing the overall interest and outstanding debt in a single step and such strategies are increasingly being sought by both individuals and businesses.
Debt consolidation is a simple process where you take out a loan to pay off several existing debts. This can help you close multiple debts such as credit card bills, thus merging them into a single loan. It removes the inconvenience of managing multiple loan accounts.
The main advantage of debt consolidation is that you have to deal with a single loan and remember a single payment date instead of multiple payment dates.
One of the best ways to consolidate loans is to opt for Loan Against Property. Whatdoes a loan against property mean?
A Loan Against Property is a secured loan that uses your property as collateral. Since it uses security, lenders are more likely to approve this loan. You can get up to 60 percent of the value of your real estate asset as a loan against property from your lender.
An effective way out of this is to consolidate your existing debts into a single loan on the property. With a new loan, you can opt for lower interest rates, lower EMIs, and other favorable terms of your choice.
When you are going to apply for a LAP, the documents required may differ from lender to lender.However, the following is an indicative list:
Debt consolidation can help you pay off your debts systematically. One of the most effective means is to apply for a loan against property. This can help you get more time, money, and a lower interest rate, making loan payments easier.
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