Availing loans has become quintessential so as to achieve various financial goals. However, servicing all these loans may be stressful and lead you down a difficult road. Not only do you face a financial crunch but also have to compromise on your lifestyle and other financial needs.
Moreover, in a bet to meet emergency financial needs, you may have to consider selling your assets or investments and compromise on your other goals. To avoid such financial headwinds, consolidate all other loans and get debt-free sooner using a loan against property. Debt consolidation loan is easy with a loan against property and here is all you stand to gain from it.
Access to High-Value Loan Amounts
You may have various debts like personal loans, home loan, car loan, and credit card bills whose total outstanding may run into lakhs. The only credit that offers high amount is a loan against property. This is possible because lenders sanction the loan amount based on the property value which can run into lakhs. For instance, when you apply for a Bajaj Finserv Loan Against Property, you can access as high as Rs.1 crore as a salaried individual and Rs.3.5 crore as self-employed. Use such a high amount to consolidate your debts and pay them off at once.
Pay Lower Interest Rate
As a rule, unsecured loans have higher interest rates than secured. Since you have a combination of both secured and unsecured debts of varying interest rates, the overall cost of servicing the debts will be high. Further, you are already paying multiple interests on various debts. To reduce this cost, you can benefit from the lower interest rates of a loan against property and use it to prepay your debts before the tenor ends. This way, you can save a lot on the interest payments.
Enjoy Quick Loan Approval
A loan against property features lower interest rates and is easier to avail, all thanks to the collateral. This helps you to address your financial headwinds without much delay. For instance, Bajaj Finserv, one of the top lenders of Loan Against Property in India, offers simple eligibility criteria and easy documentation to offer higher approval chances. On submission of accurate documents, you can expect quick approval within 48 hours and a loan disbursal within 72 hours.
Managing multiple debts is surely a task. Not only do you have to keep a tab on EMI payments but also glue your eye on the interest rate fluctuations. Moreover, if you have invested in various options to prepay each loan, planning and managing finances may get tougher. On the other hand, by consolidating all your loans into a single one, you can plan and manage your finances in a better way. Also, by applying with Bajaj Finserv, you can benefit from the Flexi Hybrid feature that lets you withdraw from the sanction as per your requirements and pay interest only on such amount. What’s more, you can also pay interest-only EMIs and repay the principal when the loan against property tenure ends.
Improve your Credit Score
When you avail numerous loans, servicing them becomes difficult in times of emergencies as you need to divert some portion of your budget for an unplanned expense. This may force you to miss or delay some or all of your EMI payments, which adversely affects your credit score. By consolidating all your loans into a single loan you can ease your financial strain, repay your EMIs on time and thus, maintain a good credit score. Here’s how using a loan against property can to consolidate your loans affects your credit score.
- On availing a new loan your credit increases while the utilization remains constant, resulting in a lower credit utilization ratio, which adds a few points to your credit score
- If you start servicing this loan on time your credit score increases. If you don’t, it will reduce.
You are just a loan away from fixing your financial headwinds. So, put off any delays and make a wise financial decision by applying for a Bajaj Finserv Loan Against Property today. Check your pre-approved offer to view your customized deal and expedite your financing to get debt-free sooner.