A loan against shares/securities has emerged as one of the most fitting financing solutions for people who are in immediate cash needs and don’t want to liquidate their long-term investments for the same. But, the same is only justified if you can obtain it at a lower interest rate. Though it’s a little difficult to obtain a good deal in regards to lower interest rate, the same can be possible if you follow the below-mentioned steps.
Keep your expectations low:
When you talk about taking a loan, asking for a lower amount than what you are exactly eligible for helps you obtain it at a lower interest rate. The rule is simple: lower liabilities, better offer.
Maintain a healthy CIBIL score:
CIBIL score plays a crucial role while calculating the interest rate applicable to your loan application. People with a better CIBIL score (more than 750) get better deals as compared to people with a bad CIBIl score (considerably less than 750).
Ask for floating interest rate
The interest rate is of two types: fixed and floating. Fixed interest rate remains constant over time, whereas, the floating interest rate change as per the market dynamics. Initially, the schemes offered with the latter type come with a lower interest rate.
Choose a shorter repayment tenure:
Repayment tenure or duration of the loan is how much time you’ll get to repay the debt. In general, loans taken for a shorter repayment tenure are offered at a lower interest rate. Hence, opt for a shorter tenure while applying for the loan against shares or securities, but make sure the time frame is in accordance with your monthly financial capacity.
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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