Debt Consolidation with Loan Against Property (LAP)
Managing multiple EMI payments can be cumbersome and difficult to keep track of. Opting for a Loan Against Property to consolidate all your existing debts can be a smart and cost-effective way to manage your financial obligations.
Bajaj Housing Finance Loan Against Property for debt consolidation is a secured loan that you can avail of against your property as collateral. This loan amount can be used to close your other existing EMI obligations and limit your repayment outflow to just one consolidated EMI.
You can also benefit from a competitive interest rate with a Loan Against Property for debt consolidation and receive the amount in just 72 hours* post verification and approval.
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.
A debt consolidation loan comes with a competitive interest rate and is offered on the basis of your creditworthiness, income, and property value among others.
It is important for you to also consider the fees and charges associated with a debt consolidation loan before deciding if it can be the right solution for your financial situation.
Debt Consolidation Loan Benefits
By choosing to consolidate your debts, here are a few benefits you stand to get:
- You can save on your total interest outgo, as a Loan Against Property allows you to pick a long tenure of up to 17 years with a lower interest rate as compared to an unsecured loan
- You can eliminate the hassle of making numerous EMI pay-outs and keeping track of each of them. Thus, with a loan for debt consolidation, you subsume your other EMIs into one. This can help you have a better control over your finances with a more simplified repayment schedule.
- You can also use this opportunity to enhance your credit score by closing your other loan accounts, which can 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 can gain more in terms of:
- A sizeable loan sanction
- A competitive interest rate
- A long repayment tenure
With all things considered, a Bajaj Housing Finance Loan Against Property can be a good 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
The list of documents required for a Bajaj Housing Finance Loan Against Property includes:
| 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
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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 23 and 60 years** | Age should be between 23 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 3+ 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 can be a suitable option for 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 lower interest rates as compared to unsecured loans – the benefits are listed below.
- You can borrow a sizeable loan amount – You can avail of a loan amount of Rs.5 Crore* or more, basis eligibility. This amount can help you consolidate your other debts into a single loan.
- Long repayment tenure – LAP comes with a long repayment tenure reaching up to 17 years depending on your eligibility at the time of application. This may give you a longer time to repay your debts conveniently.
- Competitive interest rate – LAP comes with a lower interest rate than most other types of loans such as unsecured loans. Hence, it may reduce your collective interest outgo.
Tax Benefits of Loan Against Property for Debt Consolidation
Tax benefit under 24(b):
Under this section, you 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 under the old tax regime.
Tax Benefit under Section 37(1):
If you have any expenses related to your business operations that aren’t capital or personal expenses, then you can claim tax benefits under Section 37(1) under the old tax regime.
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 time and effort. Follow the below 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.
- Enter the PIN code, and required loan amount, then generate OTP.
- Enter the OP receive and complete the rest of the application form.
- Submit the form.
A Bajaj Housing Finance representative will contact you to help you with the further 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 have a good credit profile, before applying for a loan, to get better loan terms.
A loan for debt consolidation can be a good option for debt management if you want to consolidate multiple EMIs into one. This may also help you reduce your total interest outgo.
The time it takes to get a loan approval may vary from case to case, but eligible applicants can get a loan approval within 24 hours* from the time of their loan application, provided they meet all the eligibility requirements and submit the necessary documents.
Bajaj Housing Finance offers a tenure of up to 17 for a Loan Against Property for debt consolidation, basis eligibility. This can help you with a manageable repayment schedule for your ongoing financial obligations.
