Loan Against Securities is a form of secured loan where you can leverage your existing financial assets to obtain a loan. Instead of selling your shares, bonds, or mutual funds, you pledge them to the lender, who in turn provides a loan amount based on the value of the securities. The best part is that you continue to enjoy ownership and benefits, such as dividends or interest, on your pledged securities while having access to funds for personal or business needs.
Types of Securities You Can Pledge:
Shares:
- Listed shares in your demat account can be pledged to avail a loan.
Mutual Funds:
- Both debt and equity mutual fund units can be pledged as collateral.
Bonds:
- Fixed-income securities like bonds can also be used to secure a loan.
Insurance Policies:
- Select insurance policies with a surrender value can be pledged to access a loan.
Government Securities:
- You can pledge government-backed securities for loans.
Features of Loan Against Securities:
- Quick Access to Funds: Get immediate liquidity without selling your investments.
- Flexible Loan Amount: The loan amount depends on the value of your pledged securities.
- Continue to Earn Returns: Even after pledging, you continue to receive dividends, interest, or other benefits from your securities.
- Lower Interest Rates: Being a secured loan, LAS offers relatively lower interest rates compared to personal loans.
- No Fixed Repayment Schedule: Flexibility to repay the loan as per your convenience.
- Retention of Ownership: You maintain ownership of the securities and can benefit from any capital appreciation.
Secure Your Financial Future Today
Unlock the value of your investments without having to sell them. Apply for a Loan Against Securities and enjoy financial flexibility while your portfolio continues to grow. Contact us today to know more about your options!