In India, there are a majority of loan types available to help everyone fulfil a diverse need. If you need some funds for yourself, you can apply for personal loans.
Business loans are created to help you expand and grow your firm without facing cash crunches.
Although different kinds of loans are available, not a large number of people apply for them. There are two reasons for that.
The primary reason is that most of the applicants are not eligible and do not fulfill the eligibility conditions of the lenders. The other reason is eligible people don’t want to fall in the debt trap as they don’t want to pay EMI + interest amount per month.
However, when people apply for secured loans, they need to keep something as collateral which in turn, keeps the interest rate lower. As a result, they can repay the loan without hurting their monthly budget.
Although different kinds of loans are available, not a large number of people apply for them. There are two reasons for that.
The primary reason is that most of the applicants are not eligible and do not fulfill the eligibility conditions of the lenders. The other reason is eligible people don’t want to fall in the debt trap as they don’t want to pay EMI + interest amount per month.
However, when people apply for secured loans, they need to keep something as collateral which in turn, keeps the interest rate lower. As a result, they can repay the loan without hurting their monthly budget.
The loan against securities is one of the least recognized secured loans. But, one can avail it and fulfil many personal and professional needs.
What’s the biggest benefit of the plan? A borrower needs to care for a lower loan against securities interest rate and pay lower EMIs. Also, the loan against securities helps you pay interest amount only on the utilized amount and time till it’s paid.
As a result, a borrower doesn’t have to worry about repaying the loan against securities amount. He/she can utilize the loan as per the needs and repay without issues.
A quick introduction to the loan against securities
The loan against securities (LAS) is a unique lending facility. It lets you can borrow a certain amount after pledging the money in securities. In other words, you only need to pledge the invested sum as collateral or security to borrow money.
You stay invested in your securities and don’t sell it off to lenders. You continue to receive the benefits of the policyholder in the form of benefits, bonuses and interest gains.
As per the terms and conditions of the lenders and based on the worth of your securities, you can grab up to Rs.10 crore. Most of the lenders let you borrow money when the value of your portfolio is not less than Rs.10 lakh.
What advantages do you get while applying for the LAS?
Other than availing up to Rs.10 crore, you also get to enjoy many other benefits when you apply for loan against securities such as:
• You get to connect with a dedicated Relationship Manager to ask and solve all loan related queries 24/7.
• You don’t have to pay any extra fees for making a part prepayment or foreclosing the loan account earlier than the tenor.
• You get to track all loan details via the digital customer portals of the lenders from anywhere and round-the-clock.
• You get to apply for the loan against a wide range of approved securities. Some of the approved securities include shares, mutual funds, bonds, insurance policies, IPOs, ESOPs and others.
Why wait when you can grab so many benefits right after applying for the loan against shares account? You can apply for loan against securities online and grab funds to fulfil your multiple needs. What’s more, you only need to pay interest on the utilized amount and only till the time it’s not repaid.