The Biggest Advantage of Loans Against Securities

A loan against shares helps one in borrowing funds against listed securities like mutual funds, insurance, bonds, and shares. These are the favourite options of experienced and professional investment advisors in India. As equity markets of the country are booming nowadays, people can easily raise funds against securities during the time of emergency, that’s why a loan against securities is also a type of secured loan like loans against property, gold, securities, etc. Being highly liquid in nature, these shares can facilitate the sanction of the loans at a very low rate of interest so at the time of emergency, people can meet their financial needs without unnecessary delays, and they can utilize the loan amount as per their wish.

If you are living in Delhi and looking for an instant cash loan against securities, then before making any decision, always consult with a SEBI registered investment advisor for better insight. Usually, a loan against securities doesn’t require any guarantor, but the validation of the security papers and the borrower’s identity authentication is a must. In the case of loan against securities banks and NBFCs provide instant loan services to their customers, whereas loan against property is a relatively more time-consuming process. But, for instant online loans in Delhi NCR and other metropolitan cities, one can avail of these loans rather quickly with the guidance of a SEBI-registered investment advisor, who also helps investors through quick online loans.

The biggest advantage of loans against securities is maintaining the ownership of securities that help the borrower to continue gaining the benefits of his/her investments. The loan amount depends on the valuation and liquidity of the stocks in one’s portfolio, his/her credit history, and the margin decided by the lender. That’s why the help of a SEBI-registered investment advisor is almost mandatory here because only an experienced financial advisor can make you aware of the present and forecasted market tenders and the best loan options against the securities.

One can expect 50 per cent to 70 per cent of the total value of the stock portfolio pledged with the lender. But, in the case of government securities the loan value may exceed up to 80 per cent of the stock portfolio pledged. Another benefit associated with a loan against securities is that the interest levies only on the amount that the borrower withdraws from his/her account over a period of time. Whereas, one can still receive a premium over the stocks in the form of bonuses, dividends, etc. All these features make a loan against securities a risk-free option to secure money during financial emergencies.

Right from Lending to Investment Advisory and Wealth Management to Insurance, Finway Capital is a holistic financial platform for individuals and small businesses.