Debt Consolidation with Loan Against Property (LAP)
Keeping up with multiple EMI payments is cumbersome and can cost you more than you may realise. Seeking a Loan Against Property with the intent to consolidate all your ongoing debt obligations is a cost-sensitive approach to servicing your debts.
The Bajaj Housing Finance Loan Against Property for debt consolidation is a secured loan granted to you against a property as collateral. Use your loan sanction to close your existing EMI obligations and limit your repayment outflow to just one consolidated EMI.
The benefit of borrowing a Loan Against Property for debt consolidation from us is that you enjoy competitive interest rates and save on your total interest outflow by using the loan sanction to foreclose your other loans. Apply today and receive the money in your account in just 72 hours* from document submission.
What is a Debt Consolidation Loan?
Debt consolidation is combining all your existing EMI pay-outs into one EMI – effectively consolidating numerous debts into just one. The purpose of debt consolidation is to simplify debt repayment and potentially lower the interest rate and monthly payment amount.
Debt consolidation loans may come with a fixed or variable interest rate, and the borrower's creditworthiness and income will determine the terms of the loan. It's important for borrowers to carefully consider the fees and interest rates associated with a debt consolidation loan before deciding if it's the right solution for their financial situation.
Debt Consolidation Loan Benefits
By choosing to consolidate your debts, here are the benefits you stand to get:
- You can save on your monthly cash flow as well as interest, as a Loan Against Property allows you to pick a long tenor of up to 17 years with a lower interest rate, enabling smaller EMIs compared to, say, a personal loan or business loan.
- You can eliminate the hassle of making numerous EMI pay-outs and keeping track of each of them. With a loan for debt consolidation, you subsume your other EMIs into one. Consolidating your debt allows you a better control over your finances and interest outflow with a simplified repayment schedule.
- You can also use this opportunity to enhance your credit score by closing your other loan accounts on time, ensuring that your repayment record remains spotless. It will only help to seek better loan terms in the future.
Types of Loans for Debt Consolidation
You have two types of debt consolidation loans to choose from – a secured type and an unsecured type. Unsecured loans include personal loans, among others, while the latter includes Loans Against Property. By choosing a Loan Against Property, you gain more in terms of:
- A sizeable loan sanction
- A competitive interest rate
- A longer repayment tenor
With all things considered, a Bajaj Housing Finance Loan Against Property makes for an ideal choice for a debt consolidation loan. To understand more about the interest rates associated with our Loans Against Property,click here.
Documents Required for Debt Consolidation with Loan Against Property
To benefit from a Bajaj Housing Finance Loan Against Property, here are all the documents you may need.
| For Salaried and Professional Borrowers | For Self-Employed Borrowers |
|---|---|
| Identity card issued by the employer | Valid document of current business ownership, such as partnership agreements, registration certificates, etc. |
| Latest salary slips and financial records for the last 3 months. PAN Card or Form 60 are mandatory documents. | Primary bank account statements for the last 6 months and financial statements such as Balance Sheet, and P&L Statements. PAN Card or Form 60 are mandatory documents. |
| Income Tax Returns | Income Tax Returns |
| Property Title Deed | Property Title Deed |
Please note that this list of documents is only indicative, and we can request additional documentation after assessing your loan application and profile.
Calculate Your Loan Against Property EMI
Repayment schedule
All Loan Against Property Calculators
Loan Against Property for Debt Consolidation Eligibility Criteria
Meet the below criteria to apply for a Loan Against Property and receive your loan approval within 24* hours of application verification.
| Salaried individuals | Self-employed individuals |
|---|---|
| Age** should be between 28 and 58 years | Age should be between 25 and 70 years |
| Applicants to be employed in a private/public/multinational organisation | Applicants to have a regular income source |
| Applicants must have a minimum work experience of 3+ years | Applicants must have a minimum business vintage of 5+ years in current enterprise |
**The upper age limit is considered as the age at the time of loan maturity. Additionally, the upper age limit for applicants is subject to change, depending on the property profile.
Benefits of Loan Against Property for Debt Consolidation
Loan against property (LAP) is a secured loan and hence provides a superior method of debt consolidation especially when your current debt obligations add up to a substantial amount. Using LAP, borrowers can consolidate their existing debts into a single loan at relatively lower interest rates and EMIs – the benefits are listed below.
- You can borrow a high amount – Borrowers can get a considerable amount - almost 70% to 75% of the property value. It is however recommended that you avail only the amount sufficient for your needs and not the maximum amount possible.
- Considerable repayment tenor – LAPs come with a long repayment tenor reaching up to 17 years depending on your age at the time of application. This gives you enough time to repay your debts.
- Competitive rates of interest – LAP comes with relatively lower interest rates as compared to most other types of loans (except Home Loans of course). Hence, you can reduce your collective interest outgo.
- Lower EMIs – With longer tenors and lesser interest rates, your EMIs are bound to become less. This might make your life at least a little, if not a lot more, easier.
- You can work on your credit score – With the possibility of aligning all your EMIs into one, you are no longer prone to missing out on your installments due to forgetfulness or preoccupation. This starts creating a positive effect on your credit score.
Tax Benefits of Loan Against Property for Debt Consolidation
Tax benefit under 24(B)
Under this section, individuals are eligible for deductions up to Rs.2 lakh, provided you use the Loan Against Property amount to fund your new residential house. The interest payments are eligible for tax deductions.
Tax Benefit under Section 37 (1):
if you have any expenses related to your business operations that aren’t capital or personal expenses, you can include them in your income/loss statement.
How to Apply for a Loan Against Property for Debt Consolidation
Initiate your debt consolidation journey by applying for a Loan Against Property with Bajaj Housing Finance. Our application process is efficient and direct, saving you both time and manual effort. Please follow the prescribed steps to complete your application.
- Visit the Loan Against Property application form and proceed to enter your personal, employment, and contact details.
- Select the location of your property, along with your income and annual turnover details, if applicable.
- Submit the form and complete your application process.
A Bajaj Housing Finance representative will contact you to help you complete the rest of the process. This will include documentation and property verification.
*Terms and conditions apply
Frequently Asked Questions
Typically, a credit score of 750 and higher is considered good for a Loan for Debt Consolidation, or any other secured loan sanction from Bajaj Housing Finance. It projects you as a reliable borrower, with a strong repayment capacity and financial standing. Ensure that you do all that you can to boost your credit profile, before applying for a loan, to maximise your chances of easy approval.
A Loan for Debt Consolidation is an extremely handy tool for debt management, if you want to reduce your total EMI outflow and curtail your monthly expenditures. You can consolidate your other ongoing debt obligations into one single EMI, by using the loan sanction to prepay your other loans. This way, you save significantly, and reduce your monthly EMI outgo.
The time it takes to get a loan approval may vary from case to case, but eligible applicants can hope to secure a loan approval within 24 hours* from the time of their loan application, provided they meet all the legal and technical requirements and submit the necessary documents in order.
Borrowers can take up to 18 years to repay a debt consolidation loan, or a Loan Against Property taken for the purpose of debt consolidation. This allows for easy repayment without placing any additional pressure on your ongoing financial obligations.
