Loan consolidation is when an individual clubs all of his smaller debts together and repays them by availing a single large loan. You can avail loan against property debt consolidation to help you pay off all your existing smaller liabilities.
Benefits Of Availing Debt Consolidation
When you consolidate all your existing loans into a single one, you have to pay only one EMI each month as opposed to multiple ones. Additionally, there are several benefits of availing a loan against property in India to pay off your existing smaller debts.
Flexible tenure- The loan against property tenure is flexible, which makes it easier to repay it through smaller EMI amount. Even if you avail a high loan value for debt consolidation, you can pay it off easily over a prolonged tenure.
Easy approval- Financial institutions offer benefits like instant approval and easy disbursal for this advance. You can quickly avail the advance by submitting the loan against property documents required.
Low-interest rates- Since a loan against property is a secured advance, lenders offer a lower interest rate on it as compared to other unsecured advances. Thus, when you avail it as a debt consolidation loan, you can repay your prior debts with lower EMI.
Consolidating your debts into a single one and paying it off with a loan against property comes with numerous benefits. However, before applying for such credits, make sure you comply with the loan against property eligibility criteria to avoid any hassle with the application process.