A debt consolidation loan is available to clear off existing liabilities at a lower interest rate. In case of such a loan, the borrower clubs all his/her high interest debts generally unsecured, under a single debt and repays the loan amount in one single payment. Apart from enjoying low-interest rate and affordable EMI payments, an individual can release the hassle of maintaining different bill payment records using debt consolidation method.
Several financial institutes offer debt consolidation loan at fixed interest rates with the provision of regular EMI payments. However, the tenor of loan repayment varies from one lender to another. Individuals can opt for a loan against property and effectively repay their existing loan with extended tenor options available of up to 20 years.
How Does Debt Consolidation Loan Manage High Interest Rates?
Individuals who are dealing with loans at shorter tenor are subject to higher interest rates. In such cases individuals can avail a debt consolidation loan, combining all such short tenor loans into one and clearing them off at one single payment. Debt consolidation through loan against property equips an individual with a high sum, ranging between Rs.1 crore to Rs.3.5 crore, adequate to resolve all existing loan debts at an affordable interest rate.
A loan against property can help a borrower avail up to 75% of the mortgaged property’s value as the loan. Also, being a secured loan, you can benefit from substantially lower interest rates than those applicable on your current existing unsecured debts.