Credit cards are the quickest and easiest way of availing credit in India compared to any other sources. They help you attend to emergency expenses with ease.
On the other hand, availing a loan in such cases may be an inconvenience as customers have to go through an extensive documentation process. Hence, credit cards become a hassle-free alternative that can come to the rescue.However, if you go into heavy debts while using credit cards, avail a loan to clear all dues. Late repayments will lead to bad credit history, and your CIBIL score will go down considerably.
A Loan Against Property for Debt Consolidation is the smartest choice you can make. Such loans come at a very affordable rate of interests and lengthy tenure of up to 20 years. As such, EMI payments will not be a burden on your pocket.
What is a Loan Against Property?
A loan against property is a type of secured loan that requires the borrower to pledge an asset as collateral. The lender holds the asset until the full repayment of the loan. If the customer defaults, the lender will confiscate the asset and liquidate it to fulfil the damages.
However, these loans provide more benefits than their unsecured alternative – personal loans. Similar to personal loans, these advances also do not have end-use restrictions.
Below are the primary causes to avail a loan against property for debt consolidation.
1. Longer Tenures
Customers not only get to repay their credit card debt within due date but also get ample time to repay their loan against property. Lenders can provide loan against property tenure of up to 20 years with such loans.
2. High Loan Amount
Financial institutions provide up to Rs. 3.5 Crore with a loan against property India. Although credit card debts may not go that high, these loans can cater to various other needs as well.
3. Lower Interest Rates
The lower Loan Against Property Interest Rates compared to unsecured loans. As such, EMI amounts remain affordable throughout the tenure.
4. Easy Balance Transfer
Financial institutions offer easy balance transfer facility with loans against properties. With this facility, a customer can transfer the remaining loan amount to another lender who offers a low rate of interest against nominal charges. The property papers will stay with the new lender till complete repayment is done.
5. Loan Top-Up
Few lenders provide a loan top-up through which customers can avail an additional amount with their existing loan against property for debt consolidation.
Documents Required for a Loan Against Property:
The loan against property documents required by financial institutions include –
●Address proof.
●KYC documents.
●Salary slips.
●Bank statements.
●Business proof in case of self-employed applicants.
●Income tax returns.
●Business turnovers audited by a CA.
Eligibility Criteria for a Loan Against Property:
Applicants have to fulfil the following loan against property eligibility criterions –
●Salaried individuals need to between the ages of 33 and 58 years.
●Self-employed applicants need to be between the ages of 25 and 70 years.
●Salaried customers must be employed with public/private company or MNC.
●Self-employed individuals need to have a business vintage of minimum 3 years.
With these simple eligibility requirements, avail a Loan Against Property for debt consolidation and take care of credit card bills. Such a loan can help the credit card holder keep his/her credit score healthy by repaying the debt in time.