Have you ever needed funds to take care of a personal financial issue or an urgent business need? If yes, then the loan against securities is a new and innovative method to get access to a higher value of the loan to cover many needs.
By opting for the loan against securities, you can get funds. All that you have to do is pledge your securities. It could be in the form of shares, mutual funds, bonds, insurance policies and more.
Your securities are considered as collateral or security in this type of loan. As a result, the loan against securities interest rate is lower. Hence, the management and repayment of loan against securities are hassle-free.
From where can you avail a loan against securities?
Leading banks and non-banking finance companies (NBFCs) offer the loan against securities. You can apply for loan against securities online by going at your lender’s product page for loan against securities and filling out an online form.
Compared to a bank, taking the loan against securities from a non-banking finance company (NBFC) is fastest. It also one of the most effective ways to access funds without hassles.
As per your needs, you may be able to grab a higher loan amount of up to Rs.10 crore from leading lenders. However, the minimum value of your portfolio should be at least Rs.10 lakh to start applying.
What are the purposes of taking the loan against securities?
People may avail of a loan against securities facility to fund their different needs; here are some most common reasons for them availing it.
Working capital needs for business – An individual can acquire the loan against securities. It can be used to fund daily working capital needs of the business. Hence, when there are no cash crunches, a business can grow amazingly.
Business expansion – You can also apply for loan against securities to expand your business. You can use the acquired money to design a new product or open new branches of your business in new cities and others.
Personal use – People may also opt for the loan against securities facility to fulfil many personal needs. Right from holidaying overseas to funding a child’s education to the marriage of a child to a medical emergency, all can be managed.
What eligibility and documents are needed?
To apply for loan against securities at a lower interest rate and managing your monthly expenses, you will need to prove your eligibility. To do that, you will need to have a look at the following eligibility and documents:
You should be a resident Indian citizen
Your age should be at least 21 years old
You should have a regular source of income – self-employed/salaried
ID and address proofs
Documented securities’ proof
Recent coloured passport sized photograph
The loan against securities helps you get easy access to funds when you need it the most without breaking your investments. This way, you stay invested and continue to earn the benefits of a policyholder. If you are ready to apply, you can go ahead and do that online.