How Do I Consolidate My Loans Into One Payment?

How Do I Consolidate My Loans Into One Payment?

How Do I Consolidate My Loans Into One Payment?
Consolidate My Loans Into One Payment

Debt consolidation is where a borrower avails a single large loan to repay all existing debts and clubs them together under that single loan. Such loans are known as debt consolidation loans.
Loan against property for debt consolidation are popular among borrowers in India. Such advances provide substantial loan amounts to cover existing debts. Loan Against Property are secured loans and therefore come with lower rates of interest than unsecured loans, which are the most commonly defaulted loans in India.

A Loan Against Property for debt consolidation allows an indebted person to pay EMI for only one loan. Thus, it helps to consolidate multiple loans into one. There are many advantages of debt consolidation with a loan against property.

Debt Consolidation With A Loan Against Property

Various loan against property features allows it to be one of the best financing tools to pay off multiple debts. Let's understand what makes a Loan Against Property so useful for debt repayment.

    • High-value Loan

Loan Against Property is a high-value loan and borrowers can withdraw up to Rs. 3.5 Crore. Such substantial loan amounts are sufficient to close all existing debts. With a loan against property in India, you can pay off all your short-term debts at once. Pay a single EMI instead of multiple ones like before.

  • Low Interest Rates

Loans against properties are secured loans, and thus are low risk for lenders. Loans against property and other such secured loans come with lower rates of interest in comparison to unsecured loans. Use a debt consolidation loan to repay your existing debts at lower EMIs.

  • Long Tenure
  • Loan against property tenures is longer as these are high-value long-term financial products. It is obviously not possible for an individual to repay such a high loan amount across a short tenure as it will lead to extremely high EMIs.
  • Longer tenure lowers the EMI payments, so it becomes convenient for the borrower to pay off the loan. Note that higher tenures mean you pay a larger amount of interest for the loan. However, it is more vital to consolidate your existing debts and replenish your finances over the next few years instead.
  • Hassle Free Approval
  • Loan against property eligibility is generally easy to meet. Since these are secured loans where you mortgage an existing property you own, lenders put more weight on the property value than on your repayment capability.


Vital Documents For A Loan Against Property

You need to be able to furnish all requisite loan against property documents required for a successful application. Your property ownership document is the most vital one here. Sales deed, copy of the agreement, share certificate, maintenance bills, and electricity bills are among the basic necessary property documents.
Other documents you'll need to furnish when applying for a loan against property are –

Proof of Income

  • For salaried applicants - Payslip, increment or promotion letter, Form 16, IT returns.
  • For self-employed applicants – Computed income duly attested by a chartered accountant. One must also produce his/her business' Income tax return statements for the last 3 years. Audited balance sheet, which also includes tax audit reports, may also be asked for by the lender.

Account Statements

  • For salaried – Account statements with all transactions from the last 6 months.
  • Self-employed – Statements of both savings and current account with transactions from last 1 year.
  • In case the borrower has any existing loans, the sanction letter and payment track record must be presented. Professionals such as engineers, doctors, and chartered accountants, must be able to show proper degree certificate and license of practice.
  • You can avail a Loan Against Property for Debt Consolidation from leading NBFCs such as Bajaj Finserv and enjoy the most attractive rates of interest other than minimal documentation requirements.
  • Bajaj Finserv also provides pre-approved offers on such loans as well as on personal loans, home loans, business loans, and numerous other financial products and services. These offers make the process of availing finances easier and help you save time.

Must Read: Why A Loan Against Property Helps In Consolidating Existing Debts

A Loan Against Property for debt consolidation can help you consolidate all your existing loans or credit card dues into one single payment at lower rates of interest. Additionally, if you opt for Loan Against Property customized to consolidate debts from top lenders, you can even enjoy no-charge part prepayment and foreclosure benefits to realign your finances at the earliest.