Optimize Your Debt With Loan Against Property

Having multiple loans in your name creates a lot of financial stress due to multiple EMIs and higher interest payment. Besides financial stress, a huge amount of debts can affect your credit score as well and will make it difficult for you to secure any loan in the future. It is very important that you plan your finances well to ease your debt burden. The best way to consolidate your debt is to take a loan against property. Loan against property being a secured loan is available at affordable interest rates. Debt consolidation is a smart way to optimize your finances and save on interest payment. With the help of loan against property, you can consolidate your different debts like credit card bills, car loan, personal loan etc.

Debt With Loan

Benefits of taking a loan against the property to consolidate your debt:

1. Larger Amount

By taking a loan against the property you get enough funds to pay off for all your debts. A larger amount of loan can be easily availed to consolidate your multiple debts. Amount of loan depends upon the Loan to Value Ratio (LTV). Lenders apply an LTV on the fair market value of the property to determine the amount of loan you can borrow. Usually, you get an LTV of 45%-75% depending upon the type of your property.

2. Low-Interest Rate

Loan against property being a secured loan is available at a low interest rate in comparison to other secured loans. So, one of the biggest advantages of taking a loan against the property to consolidate your debt is huge savings on interest payment.

3. Collateral

Loan against property is easy to avail, as any type of property i.e. both residential and commercial can be kept as collateral.

4. Longer Tenure

Loan against property can be availed for a longer tenure of up to 15 years. Longer tenure implies affordable EMIs as the loan is to be repaid over a longer tenure.

Eligibility Criteria


To apply for a loan against property, your age should be at least 18 years and not more than 70 years.


If you are a salaried individual, a net monthly income of Rs. 25,000 or above is required. In case you are a self-employed individual, a net annual income of more than Rs. 3 lakhs and above is required.

Business Stability:

For a self-employed person, a minimum business existence of 5 years is required and the business should be profitable during that period.

CIBIL Score:

Generally, a credit score of 650 and above is considered good for availing a loan against property without any hassle.


Documents required for applying for a loan against property are given below:
KYC Documents: Residence Proof, Identity Proof and Age Proof (PAN Card, Aadhaar Card, Voter-ID etc.).

So, keeping above-mentioned points in mind avail a loan against the property to optimize your debt and save on interest payments. You can apply for a loan against property through different online aggregators.

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