You save and invest to create a financial reserve to achieve goals and provide for your future. However, even with careful planning, you may face a sudden cash crunch. Given your need for financial assistance, you may consider selling securities that are highly liquid such as shares and mutual funds. However, you can provide for the present while staying invested for the future easily with a loan against securities or investments that you hold. Look at all you need to know about this financial option below before you apply so that you can make an informed decision.
It offers a substantial loan amount securities
A loan against securities offers you funding of up to Rs.10 crore when you apply with top lenders. This loan amount comes at nominal LAS interest rates as it is a secured loan. Thus, it is a better option as compared to unsecured loans like personal loans that carry a higher rate of interest and offer a lower loan amount.
It is best for immediate needs
The tenor of a loan against securities ranges from 3 months to 12 months. Hence it is a short-term loan, best used to finance immediate, needs especially when you are expecting funding in the near future. For instance, you may be waiting for another investment to mature within a few months or for the sale of a property in the next quarter. So you can take the loan now and use funds from these sources to repay it in the future.
It takes the value of your securities into consideration
The approved loan amount that is disbursed to you depends on the value of the securities you hold. Each lender has an approved list of scrips, based on which you can apply for a loan against securities. Most lenders sanction up to 50% of the value of your securities as a loan. This means that if you hold shares worth Rs.50 lakh and your lender issues loans against shares, you can safely expect to get up to Rs.25 lakh provided you meet other eligibility criteria pertaining to your age, income and credit score.
It is easy and quick to access
Applying for this loan is made easy as you can do so online, in a matter of minutes. Since the process can be completed digitally, you can apply as per your convenience. Moreover, quick processing ensures disbursal of funds to your account within 72 hours after approval.
It is convenient to repay
Despite its short tenor, this loan is easy to repay especially when you receive the funds you have been expecting within a few months. With a loan against securities you can make part prepayments or even foreclose your loan at no extra charge. This makes repayment both affordable and stress-free. Further, lenders that offer online account management allow you to make payments easily via NEFT or RTGS.
It offers added benefits
Top lenders offer you additional benefits to make your loan borrowing experience more fruitful. For example, Bajaj Finserv offers a Loan Against Securities with funding of up to Rs.10 crore at nominal interest rates. It also offers online account management and a Flexi Loan facility. This enables you to borrow as you need and pay interest only on the used amount. You can also choose to pay interest-only EMIs and repay the principal at the end of the tenor. This not only helps you save up to 45%, it also makes managing your cash flow easier.
Additionally, you can easily apply for a loan against security to meet your needs in a timely manner. When you choose Bajaj Finserv all you have to do is check your pre-approved offer by providing your name and phone number. View your customised loan offer and get funds in a flash.