Loan against shares is a new member in the market, but it has gained prominence in a relatively lesser time. As per the scheme, an applicant owning share market bonds can apply for it and use his/her bonds as collateral to obtain the desired value as loan. Aside from that, the instrument allows you to preserve your investment along with helping you in taking care of your personal needs.
So, if you’re planning to liquidate your shares under the influence of an immediate cash need, wait and rethink your options. You can apply for the aforementioned scheme and satisfy your financial obligations. But before you do that, here are a few things you must know about a loan against shares.
High borrowing limit: A loan against share comes with a comparatively higher borrowing limit which means you can avail a higher amount to get over with your needs.
A flexi line of credit: The scheme offers a flexi line of credit instead of a lump sum amount. This allows you to withdraw the amount from your loan account as per your need and pay the interest accordingly.
Low-interest rate: A loan against securities allows you the same flexibility as that of a personal loan. However, on the contrary, the same is available at a lower interest rate in comparison to a personal loan.
Higher flexibility: As a borrower, you get the end-usage flexibility along with the choice to decide an appropriate repayment tenor for yourself.
In the end, whenever you plan to take this loan, back-up your decision with adequate research and market analysis to turn your debt in your favor.
Read Also :- Everything You Should Know About Loan against Mutual Funds
Read Also :- Everything You Should Know About Loan against Mutual Funds
Alisha Antil is your best financial helper for insurance. She has a vast experience in finance and insurance and provide to you the expert advise in insuring your property and health.
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