While adjusting between your savings and expenses, it is quite natural for someone to pile up some debt. If the debt is under control, and if you can pay off the EMIs on time, then there are no issues.
The problem starts when the repayment of the accumulated debts start taking maximum out of your income. And, then it becomes hard to manage the monthly expenses.
In the same context, you can go and apply for a debt consolidation loan. Many people also apply for loan against property debt consolidation to settle the dues.
If you don’t have enough knowledge about the debt consolidation loan, then let us guide you.
What is a Debt Consolidation Loan?
Debt consolidation is when you take out just one loan to pay off all existing debts in a one go. It is a common solution to get out of the trouble for consumers.
The debt consolidation works great for consumers who are overwhelming with debts. Most of such debts include ongoing loan EMIs and credit card outstanding.
Having a debt consolidation loan helps you by simplifying bill-paying. And if you do it correctly, it also eases off your overall monthly budget/payments.
The biggest benefit of availing a debt consolidation is that it helps you pay just one EMI instead of many.
As a result, you can focus on other goals in life other than just being stressed about too many EMI payments.
However, when it comes to the debt consolidation loan, the applicable interest rate on them fluctuates badly and may range between 5%-36%. Hence, people using such a loan to pay off other loans may be paying about 20% interest on such cards.
Is a Loan Against Property a Smart Idea to Settle Debts?
Another smart way to settle your current debts is applying for the loan against property facility. Since the loan is pledged against your property, the applicable interest rate is lower as compared to a conventional loan to repay dues.
The debt consolidation loan is one of the best things that can happen to a person who is debt-ridden. Not only it helps you repay all debts in one go at a lower rate; it also comes with many benefits to ease off its repayments.
● Large Amount – The loan against property is approved after evaluating your property. Hence, the final amount is always a bigger one. It helps you settle your debts and also use the remaining funds for other needs.
● Hybrid Loan – You can also utilize only a part of your loan amount and pay just the interest on it as the EMI. The rest of the money is settled at the end of the tenor. This way, you can save a lot of money on the repayment of the loan.
● Wider Tenor – You can get to repay the loan over a wider tenor ranging between 2-20 years. Hence, it is easier to repay the loan in small EMIs and not let it affect your monthly expenses.
● Lower Rate – Since it is a secured loan, the interest rate is lower which makes it easier to manage and repay without hampering your income.
Do you have a home and are you having too many debts to manage?
You can go for the loan against property debt consolidation facility to settle the debts and live stress-free.
Bajaj Finserv is here to offer you pre-approved deals on loan against property debt consolidation, home loans, business loans and other financial products. The motive of such deals is to make the entire loan procedures hassle-free and fast.
You can explore your pre-approved loan deals ty after sharing your basic details such as name and mobile number.