Everyone once in a life has to face financial crunches. Sometimes, you may also be puzzled with the fact how to tackle the unforeseen situation. At that time, you may be thinking of borrowing money you’re your friends and family, selling or pledging some of your assets. But, there is another easier way to handle the situation. If you have ever invested in shares, securities, mutual funds, insurance, stocks, or bonds then you can keep these assets as collateral to the bank or non- banking financial companies and get a loan against securities without selling your investment you can easily get the instant money.
Loan against securities is a loan given by banks and financial institutions against shares, mutual funds, insurance policies and more. It is one of the safest and secured financing option which helps to liquefy fixed assets without having to break or withdrawing them.
Higher loan amount- you can avail loan against securities up to Rs. 10 crores to meet the personal and financial needs depending on the form of securities. In this way, submit a security of higher worth and you can borrow a bigger sum
Affordable interest rate – Generally, loan against securities is offered at attractive rates ranges from 12- 15%. This rate varies from lender to lender and based on the actual utilization of the amount.
No addition charges- In order to make the repayment of the loan hassle free and make it burden free on your pocket, no extra charges on part-payment and foreclosure is charged by the lenders. It means you need not to pay any additional charges other than the principal amount and interest and the processing fee up to 2% of the loan amount.
Online access – One can easily apply for the loan online, by simply filling up an e-form to avail the loan and access the online account from anywhere, at any time and track all loan related details from the click of a button.
Loan Against Shares: It is provided against shares include stock exchange securities. Loan against shares is short to medium term loan. One can avail loan amount of up to Rs. 20 Lakhs. Some banks offer even higher loan amount and also offer an overdraft facility on Loan against Shares that can be renewed annually.
Loan Against Mutual Funds: One can avail the loan against mutual funds to meet the short term business or personal fund requirements. The value of loan amount is 60% of market value of mutual funds.
Loan Against PPF : One of the most beneficial factors about the PPF (Public Provident Fund) account is that one can easily apply for the loan against the balance in the account. Account holders can avail this loan facility between the third and sixth financial year of opening the PPF account. The interest rate offered on the loan is very competitive.
Loan Against Life Insurance Policy: Loans against life insurance policy are a loan against life insurance plan. The interest rate charged on loan is based on the premium already paid and the number of premiums that have been paid.