How to Consolidate Festive Debts with Loan Against Property in India
While you may not be able to say no to splurging during the festive season, from buying gifts to living up to traditions, you can avoid a pile-up of debt and subsequent high interest repayments.
Taking a loan against property is a good way to consolidate the credit card and personal loan debt that you haven’t been able to repay.
Not only will this help you repay your debt in a more organised fashion, but it will also help you to do so faster and more easily.
Look at how a loan against property for debt consolidation can come to your aid when you have debt left over from expenses incurred during the festive season.
Save more by Paying Lower Interest
By consolidating your debt by availing funds and pledging your property, you will only need to pay one EMI a month and deal with one interest rate instead of having multiple EMIs at multiple interest rates.
While this reduces your expenses, you can save more as a loan against property offers lower interest rates due to the pledged collateral compared to credit card interest and interest of unsecured loans.
Additionally, you will be able to acquire enough funds to consolidate all your debt instead of having to borrow funds from multiple sources.
The Loan Against Property for instance offers you high loan amounts of up to Rs.1 crore if you are a salaried individual and up to Rs.3.5 crore if you are a self-employed individual.
Additional Read: Consolidate Festival Season Debt with Mortgage Loans
Get Debt-Free Faster
As you have to pay much lesser by consolidating your festive debt, your payments towards the loan against property are much easier on your pocket.
Without your monthly cash flow being strained and with only one EMI to pay, the chances of missing a payment are fewer.
Avoiding missed EMIs helps you avoid any extra expenses in the form of late fees.
Additionally, you can also make part-prepayments with the extra funds to reduce your overall owed amount and to become debt-free faster.
Benefit from Minimal Prepayment Charges
One of the best loan against property features is that you can take advantage of low prepayment charges. This means you can easily reduce your overall interest by making part-prepayments.
This reduces either your EMIs or your loan’s tenor. This way you are encouraged to clear your outstanding loan amount and attain financial freedom.
Also Read: Factors to Remember while Applying for a Loan in Festive Season
While pledging your property as collateral, it is essential you choose the right lender. You can avail a Loan against Property from Bajaj Finserv to enjoy nominal interest rates along with a quick online application.
You can also benefit from doorstep documentation pick up, simple loan against property eligibility criteria, and the availability of a top-up loan. Furthermore, you can make the most of the Flexi Hybrid facility to borrow as you need and pay interest only on the used amount.
You can also choose to pay interest-only EMIs to manage your cash flow better. So, use a loan against property to become debt-free faster.
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Category: Debt
