Your Key to Success: Loan Against Shares and Bonds

Introduction

Imagine you require Rs. 5 crore in a short span of time. It could be for various reasons: you may want to expand your small business, renovate your home or meet a medical emergency. Normally, it would be tough to avail of such a large sum of money quickly.

You could opt to take a loan but if you don’t have gold or real estate property to put up as collateral, lenders may deny you the loan amount. But what if the only asset you held was a portfolio of bonds and shares? Well, guess what, you can now avail a high-value loan by putting your securities as collateral. This is known as a Loan against Securities (LAS).

Be successful through a loan against securities

In this current day and age of intense competition, it can be very challenging to be successful. And the most times, getting funding at the right time can be a crucial factor for success. For example, a business owner who is unable to expand due to lack of funds can fall back in the competition very quickly.

But all this can change by simply availing a Loan against Securities. Through this loan, you can get high-value loans up to Rs. 10 crores by keeping your financial securities as collateral. This includes your shares and bonds. And to top it, you can enjoy the benefits of these assets like dividends during the course of the loan. In other words, you get to have the cake and eat it too. This is probably the simplest definition of success.

Eligibility criteria

Like every other loan, there are a few eligibility requirements you need to fulfil to avail a Loan against Securities.

You need to be a resident citizen of IndiaYou need to be at least 21 years oldYou need be a salaried or a self-employed individualYou need to have a regular source of incomeThe minimum value of your securities should be Rs. 10 lakh

Documents required

When you apply for a Loan against Securities, you need to provide the following documents to the lending institution.

ID proof: This can include your driving license, Aadhaar card or PAN cardAddress proof: Aadhaar card copyDocument proof of your securitiesPassport size photographOne cancelled cheque or bank statement

Make sure you provide all these documents to the lender to ensure that the approval process is completed in a quick and efficient manner.

Loan against Securities Interest Rate

The interest rate is a key factor to consider when you apply for a Loan against Securities. The interest rate on a loan against securities can vary from one institution to another. However, as a conscientious borrower, you must check the best rates available to you before applying for LAS. You can visit the official websites of different lenders to compare interest rates. The processing fee on this loan is around 0.1-1% of the loan amount. You can use an EMI calculator to check how much you would have to pay each month over the course of the loan.

Conclusion

Meet your financial requirements by applying for a Loan against Securities and be the successful champion you have always aspired to be.

I'm a certified financial expert,lives in Delhi and completed Mba in finance.I like to write finiancial blog.