With the rising expenses and the need to get access to some urgent money, availing loans have become a need in today’s time.
However, loans are a complex thing that one can get into. As a result, the finance industry has seen the rise of the loans against securities and assets.
However, a loan against securities may be a bit confusing to you if you are a first-time borrower. Nothing to worry, this post is created to make you aware of some of the basics of the loan against securities.
What is a loan against securities?
As the name suggests, you can get access to money when you pledge or keep your securities as collateral or assets with a lender. Depending on the worth of your assets, you will be able to grab a loan of maximum Rs.10 crore. To apply for the loan against securities, the value of your portfolio needs to be at least Rs.10 lakh.
What are the eligibility criteria for the loan against securities?
To apply for a loan against securities, you will need to prove your eligibility as per the terms and conditions of a lender. Here are some standard eligibility criteria:
- The applicant needs to be a residing citizen of India and not an NRI
- The age of the applicant should at least be 21 years
- He/she should have a regular source of income – salaried or self-employed
- The minimum value of his/her portfolio should be at least Rs.10 lakh
Documents to apply for a loan against securities
You also need to furnish some documents to complete your eligibility for applying for the loan against securities such as:
- ID proofs such as Aadhaar Card, PAN Card and Driving License
- Address proof such as Aadhaar Card
- Recent coloured passport size photograph
- Documented proof of your invested securities
Loan against securities – Benefits that you can enjoy
When you apply for a loan against securities, you are bound to grab a handful of benefits such as:
High loan value
You can get up to Rs.10 crore to fund your all personal and professional needs.
Dedicated Relationship Manager
Leading online lenders appoint a dedicated Relationship Manager available 24/7 to help you with all queries.
Zero part prepayment and foreclosure charges
Do you wish to make some part prepayment towards your LAS account or foreclosing the loan on your mind? It is possible! You can go ahead and make part prepayments or foreclose your loan against securities account before its tenor. And yes, you don’t need to pay any charges to enjoy these services.
Online account management
Once you avail the loan against securities from a known online lender, you can be sure to track its progress right from anywhere and 24/7. Yes, you are given login access to see your loan’s progress via the digital customer portal of the lender. As a result, you are aware where is your loan progressing.
A wide range of approved securities
Most of the leading banks and non-banking finance companies (NBFCs) have a comprehensive list of approved securities. The common list includes Shares, Mutual Funds, Bonds, Insurance Policies, IPOs, ESOPs, and FMPs. Such securities are eligible to be kept as security or collateral to help you apply for the loan without issues.
If you need some urgent money and if you have invested in securities, you don’t need to liquidate it and lose the earned interest profits on it. Instead, you can now apply for a loan against securities and cover your needs without breaking the investment.