Debt consolidation is a common practice among borrowers, which means taking out a new loan to pay off the previous loans quickly and comfortably. Though you can avail an unsecured loan to consolidate your debts, it is advisable to go for a secured loan as it provides a lower rate of interest. A loan against property can be one of the best options for debt consolidation. 

You can receive a loan against property from different lending institutions by guaranteeing your residential or commercial property as security. But, before you apply, it is essential to check the loan against property eligibility criteria provided by every lender. 

Now, let’s have a look at how loan against property can help you consolidate all your debts.  

1. High loan amount

By availing a loan by pledging your property, you can get a rather larger loan amount, which usually depends on your property’s current value. With such a high amount, you can easily pay your multiple debts in one go.  

2. Lower interest rates 

The interest rates are comparatively lower for the loan against property as it is a secured loan. Therefore, if you are repaying high-interest debts, then this loan can help you lower your overall EMIs and interest rates. Use a loan against property calculator to calculate your EMI and interest amount to be paid each month.  

3. Any property as collateral

You can secure this loan by pledging various types of properties ranging from your home, office space, or any other property you own. This way, you can choose the most high-priced property and get a decent amount to clear your debts.  

On the whole, loan against property is a convenient solution to not only consolidate your debts but also boost your credit score and avoid penalties.

Reference Read: loan against property v/s home loan- Which one to Choose?