Your investments in securities work for you in three ways. Firstly, they give you access to a maturity corpus at a high rate of interest. Secondly, they offer excellent liquidity. These two benefits indicate that you can use your investment in securities to meet an urgent cash crunch in no time by liquidating your investments.
But before you do, remember that they serve you in a third way as well. Investments in securities act as collateral too. You can pledge your high-value securities to be it mutual funds, shares or bonds to borrow a substantial sum of money in the form of a loan against securities.
Why should you apply for a loan against securities?
If you are looking for a sizeable sum to pay for immediate needs such as to make use of a business expansion opportunity or to take advantage of a commercial property deal, you’ll need funds instantly and affordably. Instead of availing an expensive, unsecured loan you can rely on a secured loan like a loan against securities.
This loan because it gives you access to a high amount of funds against your securities and shares and at a lower loan against securities interest rate too. Apart from this, depending on the net worth of your portfolio you can access a staggering amount. Lenders like Bajaj Finserv, for instance, offer a Loan Against Shares up to Rs.10 crore at a competitive interest rate along with a tenor of up to 12 months, easy online application, a relationship manager and much more.
What are the eligibility criteria for a loan against securities?
Apart from having securities or a share profile that has a minimum value of Rs.10 lakh you will also have to fulfil the other terms of eligibility specified by the lender. For example, in order to qualify for a Loan Against Securities or Loan Against Shares, you will have to be an Indian citizen who is at least 21 years old when yosharedu apply. You also must have a regular source of income as a salaried or self-employed individual apart from securities worth Rs.10 lakh.
How to apply for a loan against securities?
Applying for this loan from lenders like Bajaj Finserv is easy. All you need to do is follow a simple 3-step process and within minutes you can finish applying.
Step 1: Keep your identity proof, address proof, passport size photograph and documents of security ownership handy. Fill the application form and submit it. You’ll get a confirmation SMS and email with the status of your application.
Step 2: Then, you will get a call from a Bajaj Finserv representative. You can submit the necessary documents to this representative to complete your application formalities.
Step 3: On successful verification of the form and the documents you will get the loan amount straight in your bank account.
The best part about a loan against securities is that while your securities are with your lender as collateral, they still continue to earn interest as well as dividends and bonuses. Moreover, you can also repay the loan by selling some of your securities. The excess, with any interest, will be returned to you. So the next time you need funds in a jiffy, don’t forget to put your investments to good use.