The retail credit industry in India is on a steady rise. According to the latest reports by leading credit information companies, the industry witnessed a staggering 28% rise from 2017 to 2018, reaching 107 million accounts. Add to that the 29 odd million credit cards and you are looking at one of the largest retail credit industries in the world, accounting for almost Rs. 20 Lakh Crore.
A substantial percentage of the borrowers have more than one debt to their name. It may be personal loan, business loan, home loan, car loan, or credit card dues. After a point, it may become cumbersome to keep track of so many EMI payments every month.
Consolidation of debt is a financial option that you may explore when there is more than one loan against your name. It is considered an advantageous option as there are numerous benefits associated with debt consolidation loan especially through a Loan Against Property for Debt Consolidation from Bajaj Finserv.
Bajaj Finserv offers a high loan against property amount with low-interest rates and long tenor. They also provide pre-approved offers on several financial products such as personal loans, home loans, and business loans. These offers simplify the process of availing finances and help you save on time.
To understand why loan against property for debt consolidation is an excellent financial decision, it is important to have a clear idea on debt consolidation and how it works.
Debt Consolidation: A Brief Guide
Debt consolidation is settlement of existing debts with a separate loan and paying a single EMI on the new loan. There are several advantages of debt consolidation, which makes it a prudent financial tool for borrowers with multiple running debt accounts.
Most people generally opt for consolidation of unsecured advances like personal loans, student loans, and credit card dues. It makes financial sense to do so as the interest rates on these loans are usually on the higher side, as are the EMI payments.
Now, there are broadly two options that you can explore to consolidate your debt – an unsecured loan or a secured loan. Unsecured loans are not only harder to obtain but also carry a higher rate of interest as there is no guarantee with the lender. Secured loans, on the other hand, are easier to obtain even with a comparatively lower CIBIL score.
The most preferred option to consolidating one’s debt is through a loan against property. You may avail these loans easily subject to the fulfilment of a few easy loan against property eligibility criteria.
Loan Against Property Eligibility And Documents Required
The eligibility criteria to avail a loan against property are among the easiest to meet as it is a secured loan.
- Age limit of 33-58 years for salaried individuals, and 25-70 for self-employed people
- Indian citizenship and residency
- Proof of income (salary slips or business vintage)
Loan against property documents required are also minimal. You need to present your KYC documents, income proof, bank statement, ITR and a copy of the papers of the property you are going to mortgage.
Why Is Loan Against Property The Best Option For Debt Consolidation?
Many loans against property features make it the ideal choice for debt consolidation.
- Lower EMIs
There are two elements to validate this point- interest rate and tenor. Being a secured advance, loan against property in India come with a lower rate of interest, which ultimately results in a smaller EMI amount.
Loan against property tenors is also quite high. For example, Bajaj Finserv offers Loans Against Property with tenors of up to 20 years. When you break down the loan amount into so many EMIs, the amount of each EMI becomes quite low, which doesn’t put too much of a financial burden on your monthly budget. You can calculate your loan against property EMIs with the help of an online loan against property EMI calculator.
- High Loan Amounts
You can avail a loan of up to Rs. 3.5 Crore against your property. It will help you settle all your combined debts quickly. Unsecured loans, like personal loans, do not give you access to such a high amount.
Consolidate all your debts under one umbrella with the help of a debt consolidation loan from lenders like Bajaj Finserv. You’ll relieve of your financial burden substantially with this approach.