How Debt Consolidation Helps To Manage Mounting Interest?

Debts have risen considerably over the last 5 years from Rs. 3.7 Lakh Crore to Rs. 6.74 Lakh Crore. The growth rate has been a whopping 13%. Consequently, the amount of loans availed to repay them has also surged. Individuals looking for repayment benefits have availed various debt consolidation loans to a large extent.

Not only has it eased the repayment terms but also impacted borrowers to repay their outstanding bills on time thereby provoking an ethical upsurge in the community. Besides, individuals are confident in managing their funds now.

What is Debt Consolidation Loan?

A loan availed from a financial institution to pay off all other loans that you had availed earlier is called a debt consolidation loan. Hence, it lets you focus on just one loan, as you need to repay only a single amount instead of several amounts at several places.

Loan against property India is a feasible option in such cases as it helps you avail a larger amount to repay your debts. Additionally, the interest rates are lower in the case of secured loans. The terms for repayment are extended as compared to the current repayment tenors as well. As a result, you can avoid confusion that may arise while dealing with several loans.

Who Can Take Debt Consolidation Loan?

A loan to repay consolidated debts is a powerful tool as it simplifies the repayment procedure largely. However, you need to fulfil certain criteria before you can avail of the loan. They are mentioned below –

  • Anyone who has a fixed source of income irrespective of being salaried or self-employed can avail a loan against property.
  • For salaried individuals, the age criteria is 33 to 58 years. For self-employed borrowers, an individual has to be between 25 and 70 years.
  • The applicant should be a resident of India.

The loan against property documents required to be produced to avail the loan include –

  • For a salaried individual, he is required to submit the last 3 months payslip from his workplace, be it an MNC, any Private or Public Sector Company.
  • For a self-employed borrower, he has to showcase the IT returns and the account statements of the previous 6 months.
  • Besides, the individual also has to present copies of the papers relating to the mortgaged property.
  • Additionally, address and identity proofs are mandatory. Usually, Aadhaar card, Voter ID or PAN Card are sufficient for these.

Therefore, loan against property eligibility norms is quite simple and easy on the borrowers’ side. Consolidation of debts and then repaying them is thus an effective way to handle your accumulated debts since managing your finances becomes simplified, thereby increasing your credit score.

What Amount Can You Avail And For How Long?

Mortgage loans are secured loans and offer high disbursal amounts. Leading lenders offer loan amounts as high as Rs. 3.5 Crore, substantial enough to meet multiple expensive financial requirements especially considering that such loans do not have any end-user restriction.

Additionally, you should also consider the loan against property tenor with respect to your financial condition. With Bajaj Finserv you can select your repayment tenor which generally starts from 2 years and it can go up to as long as 20 years. A longer tenor usually reduces the EMI amount greatly, which is preferred by most borrowers.

Must Read: How Can You Sell Your Property While It’s Under Debt?

They also provide pre-approved offers that make availing loans easier and simpler. These offers are available on loans against properties, home loans, business loans, personal loans, etc. as well as on numerous financial products. Check your pre-approved offer by providing only some necessary details online.

Can Debt Consolidation Be Beneficial In The Long Run?

Managing too many debts can be burdensome as it demands huge attention and keeping a track of the same. However, with debt consolidation, it is easier since you do not need to track multiple payments anymore.

Whether you are facing financial crises in your business or you want to get out of a debt trap with a LAP, consolidation with such loans can be highly beneficial. It reduces the number of payable EMIs as well as the overall EMI amount with the help of lower rates of interest. Refer to leading lenders for the most beneficial loan terms and features.

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