The complications arising out of the modern financial world force multiple people into the throes of a deadly debt trap. They end up taking a variety of loans from different places, and the resultant repayment burden begins to drive a major chunk away from their savings. In the absence of a consistent income source, this problem gets all the more aggravated, leaving them with no choice but to sell off their hard-earned assets.
However, what if we told you that there was a way to repay all your debts without having to cause a strain on your current finances? What if you could meet your monetary obligations within the designated time span and yet continue to enjoy the same lifestyle?
This is precisely what a loan against property enables you to do!
What Is A Loan Against Property?
As the name itself suggests, a loan against property is essentially a secure loan which can be availed against any commercial or residential property, registered in your name. Being collateral dependent, this loan offers low-interest, minimum documentation, quick approval and instant disbursal.
With a loan against property secured in your basket, your ability to manage your finances becomes quite hassle-free. This is because this loan helps you club, conjoin and consolidate all your other debts under the protection of a single umbrella! Be it an auto loan, a credit card loan, a personal loan or a business loan, you can repay all of these with the amount you receive from your loan against property and thus reduce your multiple EMI burden.
Nonetheless, lowered EMI is not the only benefit which a loan against property can provide. You can also utilise this financing system to avail a plethora of advantages like:
1. Using Your Idle Assets
Instead of letting your physical assets lie unused, you can take a loan against them and meet your financial obligations effectively. Be it a residential complex, a farmhouse, a rented accommodation or an office building – the productive use of such possessions can help you enhance their value and meet your monetary commitments, at the same time.
2. Availing A Substantial Amount Of Funds
Unlike its counterparts, a loan taken against property tends to reap higher dividends. The lenders conduct a thorough valuation of your assets and give out a loan which is about 80% to 90% of its total value. This implies that the funds, which sometimes fall within a whopping bracket of 50 lakhs to 2 crores, can then be used to pay off your other debts.
3. Providing Minimum Documentation
For loan against property documents required are nothing but a bare minimum. You only need to furnish the very basics like – an identity proof, a proof of residence, an income proof and the documents reflecting your ownership of the said property. These documents, once submitted, are processed within 2-4 business days, and your loan is sanctioned, without any hassle.
4. Getting Lower Interest & Longer Tenure
Loans taken against your property, generally tend to have a lower interest rate and a longer tenure. This is because the lenders already have your property as collateral, and thus, they are open to negotiating the terms and conditions with you. As a result, you can end up with tenures as long as 5-7 years, which are coincided with reduced interests and lower EMIs.
The Way Forward
If you too have been plagued by the grievous issue of multiple and incoherent debts, it would be wise to take a loan against property and consolidate all of them, in one place. Doing so won’t just help you manage your repayment deadlines appropriately, but it would also allow you to reduce your monthly outgo and thereby, improve your credit score. To know more about availing a loan against property and everything else that it entails, click here.