After a few years of living in a home, it demands maintenance and renovation but being able to keep money aside for doing so is always a challenge. Even if you purchase the raw material on credit, you still need to consolidate the debt sooner or later. This is possible by taking a loan against property for debt consolidation.
The best part about taking a loan against property in India is that the lending companies allow you to use it in any which way you want. It includes utilising the Loan Against Property for Debt Consolidation after renovating the home.
To give you an overall idea of various benefits that you can receive by using a loan against property for debt consolidation and renovation, here is a small list that I have created.
Calculation of Interest
There are two ways used for calculating the interest when you are trying to take a low Loan Against Property Interest Rates for debt consolidation or renovation. One is flexible whereas the other one is floating. The benefit lies in the fact that the financing organisation allows you to choose out of both the options.
It may not give you a chance to decide the EMI amount for your loan against property tenor. But will undoubtedly make you familiar with the entire interest calculation process so that you make an informed selection.
Online Application Submission
Another benefit of utilising a loan against property for debt consolidation and renovation is that you can apply for it online. It saves you the hassle of visiting the bank or financing agency and also adds convenience to the process.
Besides, you can even find all the loan against property eligibility criteria on the website itself. That gives you time to read through them carefully without skipping any vital information. In my opinion, reading the fine print of the contract is the most crucial part of taking a loan.
Different types of loan against property for debt consolidation, have different coverage policies. That is why choosing the one which suits your requirement is a must. For example, credit taken from one bank might cover the entire cost of the renovation.
Whereas, the same loan availed through another financing organisation might cover only parts of the renovation expense. However, the second option still covers up to 90% off the costs most of the time. It means you need to select the financing options according to the coverage you desire.
Additional Read: Renovate Your Home with a Home Improvement Loan against Mortgage
Fund Acquiring Format
Renovating a home is a long process, and it usually stretched out for months. For this reason, people like to opt for different fund acquiring arrangements. But to be able to choose out of different payment schemes you should first make sure that your financing agency offers various loan against property features.
The two most common type of funding formats used in the case of a loan against property for debt consolidation is lump-sum and regular instalments. If you are already finished with the home renovation process then opt for the first option otherwise the second is preferable.
As Indians, we all are used to receiving extra perks with every service that we purchase. The same is the case with a loan against property for debt consolidation. A lot of financing agencies provide you with a free credit card or less burden of a loan against property documents required.
It simplifies the need for doing elaborate paperwork while allowing you to enjoy the same benefits. Besides, another bonus of this financing service is that you do not need to have a prior relationship with the organisation.