Consolidate Festival Season Debt with Mortgage Loans

The festive season is right around the corner. First comes Ganesh Chaturthi, then Navratri and Diwali, followed by Christmas and New Year. Each occasion brings with it joy and merriment and not to forget a hefty set of bills because happiness can sometimes cost a bomb. When it comes to Indian festivals, we spare no expenses. We are passionate about celebrating every festival with great pomp. Right from decorating homes and allies to buying gifts, this joyous season brings plenty of opportunities to keep swiping your credit cards.

However, the continuous cost of spending can hit you like a bad dream at the end of the season. After the festivities are through, you’re left to cope up with multiple bills and dues that make up your festive season debt. With each delayed payment, your debt burden only keeps increasing. At this point, you can either formulate a plan to slowly pay off these bills in the next couple of months or consolidate your debt under one loan.

What is Debt Consolidation?

With debt consolidation, you pick a single loan to pay off all your other smaller bills and loans. This leaves you with just one monthly payment rather than several smaller ones that keep generating late payment charges when you delay. The idea is that one payment is easier to manage. The additional advantage is to reduce the overall interest of multiple payments while paying off your debt in one move.

Picking a Loan for Debt Consolidation: Secured Loan vs. Unsecured Loan

Secured loans, like a mortgage loan, are taken against a particular property. This loan is also called a loan against property in India. You can pledge any property, residential, commercial, or industrial and get a low-interest loan against it. Such secured loans are usually more economical than unsecured loans. Unsecured loans are offered without collateral and come with higher interest rates.

Thus, if you’re looking for a reasonable loan, a Loan Against Property for Debt Consolidation might be a better option.

Benefits of Loan Against Property for Debt Consolidation

Get a Large Loan Amount

Once you gather all your loan against property documents required, the lender can assess the value of your property and assign you a loan of a certain percentage of that value. Even 50 to 70% value of your home can be a considerable amount. Such a large loan amount could easily be used to consolidate multiple debts.

Avail Lower Interest Rates

One of the most vital features is the low Loan Against Property Interest Rates. Since this is a secured loan, you have to keep your property as a mortgage to the bank or Non-Banking Financial Company (NBFC). This is why the lender can offer you lower interest rates compared to other types of loan. Moreover, if you take a loan from an NBFC you also get competitive interest rates and pre-approved offers on loan against property and other financial products like home loans and personal loans. This eases the time and effort you put into applying and availing the loan. Additionally, when you choose a loan against propertyyou have to pay only a single interest rate for that loan, as opposed to the multiple interest rates you would have paid for numerous debts. This helps bring down the interest amount you pay for your debt.

Pledge any Property as Collateral

Loan against property offers you the convenience to pledge any property as collateral. You can choose from your residential, commercial, or industrial property. If you do not feel like taking a loan against propertyagainst your home, you have the option of taking it against your office or shop too.

A Quick Way to get Debt Free

Once you pass the loan against property eligibility criteria, the loan could be approved as quickly as three days. This depends on your financial profile and your lender’s policies too. You could use the entire loan amount as you please. This means you can pay off all your bills and debts in one single day too and free yourself from the burden of multiple debts.

Eases your Monthly Financial Plans

When you have multiple debts, you need to pay careful attention to your financial planning. You have to manage your monthly income and expenses wisely and avoid extra expenditure to be on track to pay multiple debts on time. When you consolidate all these debts via loan against property, you just have to manage one EMI every month, which is much easier to plan. This way you won’t forget or miss a payment as you pay it all in one go. Additionally, the long loan against property tenor (up to 15 years) gives you the liberty of picking an EMI that fits comfortably into your monthly budget. You can read more about how debt consolidation can help manage your finances.

Being stuck in a debt trap is never an ideal situation. Burdened by multiple debts makes life uncomfortable. Instead of making repeated payments on debts and bills, you could benefit better by consolidating all your debt with a loan against property.