Before the Corona Virus hit the globe, the GDP of the Indian economy as a whole was projected to grow. Most people were sure of the strength of their careers and their ability to hold jobs, get promotions, and increase their incomes. It was but natural they took out different loans to meet the standards of a modern lifestyle. Unsurprisingly, many salaried, as well as self-employed professionals, took loans to buy a house, car, bike, holiday plan, dresses, mobiles, and more. Now they are burdened with multiple loans, and for those who have clear titles of a commercial or residential property, taking a loan against property for debt consolidation is a great solution.

Advantages

You have one EMI – Since all your loans are consolidated in one loan, you have to keep track of only one EMI. It reduces your chances of missing an EMI and thus increasing your burden.

Interest rate is lower – Unlike a personal loan or education loan, the interest rate on LAP is lower. A lower interest rate means a reduced EMI, which further decreases your debt burden.

No restriction on use – There is no restriction on the end usage of the loan and you can take it to meet any requirement for your day to day life or business need.

Renegotiate the terms and conditions – Take the help of a financial expert to renegotiate the terms and conditions of the loan. They might be able to help you get a longer tenure with less stringent clauses.

These are some of the advantages of using your asset to keep afloat during these tough times.