A loan, no matter how immediate the requirement is, has to be planned smartly. If not all, a potential applicant should at least compare the different options available for them and choose the cheapest option. This is something which people would say to others on being asked about tips one should keep in mind while taking a loan. But when the time comes for them to act smart, they lose their senses and end up subscribing to a high-interest rate credit scheme to finance their purchase.
If this applies on you, don’t worry! You’re not alone. There are a lot of people who make a decision in haste and end up with high-interest debt trap. That said, ending up with debt trap due to unavoidable circumstances is okay, but doing nothing to get out of it is not! The same implies without saying when there’s loan against immovavable property which can be used to refinance their purchase and lower down their debt burden.
If you agree to that, here’s how you can use a loan against property to reduce your debt burden as much as possible.
Gives you access to required financing at a lower interest rate. You can use this facility to borrow money and use that to foreclose and consolidate your existing loans. The interest payable goes down owing to the interest rate difference.
You get a longer time to repay your loan which makes it easier to manage the EMIs. Besides, you get the option to part-prepay your loan whenever you want - to further reduce your interest obligation.
Bottom line: Read the loan documents thoroughly before signing it.
