A Brief Guide About Loan Against Property Debt Consolidation
As per Economic Times, household debt grew at an annual rate of over 13% in the last 5 years. The surge is evident as relative loans worth Rs. 6.74 Lakh Crore were sanctioned in 2018, 1.8 times higher than the Rs. 3.7 Lakh Crore worth of such loans sanctioned in 2017.
For such cases, keeping track of EMIs becomes one hefty task, and one may miss an EMI. A debt consolidation loan is availed to avoid such issues. This loan is taken to pay off multiple other unsecured loans. By doing so, a single EMI is up for payment and hence easier to plan your monthly financial budget.
One can avail both secured and unsecured loans to consolidate debts. While unsecured loans are difficult to avail because of multiple eligibility criteria and have a high rate of interest, secured loans are easy to avail and have affordable rate of interest. You need to qualify as per the loan against property eligibility of your chosen lender to avail a single loan for debt consolidation.
Documents Required:
- KYC documents.
- Copy of property to mortgage papers.
- Salary slip of last 2 months or proof of income.
- Bank statement of the past 3 months.
- Income Tax Returns.
Above mentioned are a few loan against property documents required to complete the loan application process.
Loan Against Property Features:
- High loan amount- One can avail a high loan amount for debt consolidation by opting for loan against property India. You can easily achieve settlement of existing debts by converting it to a single EMI loan.
- Low rate of interest- Low interest rates are offered by financial institutions and NBFCs on loan against property considering that they are secured loans.
- Long tenor- Breaking up the large loan amount in long tenor reduces the estimated monthly instalments low, making them easier to meet. Loan against property tenure can go up to 18-20 years.
Thus, make sure your debt consolidation with this property loan brings you more benefits. Lessen your burden of paying multiple EMIs in multiple places, rather pay a single EMI with affordable interest rate.
Reference Read: How Debt Consolidation Helps To Manage Mounting Interest?
