The finance industry has just come up with a new credit scheme - a loan against shares and securities, which can bring a revolutionary change in the sector if managed well. However, before getting into details - loan against securities is a credit scheme that allows people stuck amidst urgent cash problems procure sufficient funding to get through the situation.
The concept of a loan against security and shares is very clear; if a person is in need for money and he’s planning to liquidate his/her securities, he/she can mortgage it instead and obtain the required funding.
Accordingly, if you’re in a similar situation, you can apply for the said scheme and leverage the benefits. However, there are a couple of things you should keep in mind before applying and that is timing. Timing is a very important factor for people considering the said scheme.
The timing of the loan application can make or break your decision and hence, assess your needs and find out whether the circumstances you are in is right for a loan against securities application.
Accordingly, the best time to apply for the said scheme is when the need is urgent and there’s no other option left. Just make sure the interest rate of the loan is lower than the ROI you are receiving from your investment securities. Otherwise, there’s no point mortgaging your asset, liquidating them is a better option.
Additional Read: The Best Time to Take Out Securities For a Loan
The concept of a loan against security and shares is very clear; if a person is in need for money and he’s planning to liquidate his/her securities, he/she can mortgage it instead and obtain the required funding.
The benefits:-
- The cash need is met alongside preserving the investment.
- The investment keeps on growing.
Accordingly, if you’re in a similar situation, you can apply for the said scheme and leverage the benefits. However, there are a couple of things you should keep in mind before applying and that is timing. Timing is a very important factor for people considering the said scheme.
The timing of the loan application can make or break your decision and hence, assess your needs and find out whether the circumstances you are in is right for a loan against securities application.
Accordingly, the best time to apply for the said scheme is when the need is urgent and there’s no other option left. Just make sure the interest rate of the loan is lower than the ROI you are receiving from your investment securities. Otherwise, there’s no point mortgaging your asset, liquidating them is a better option.
Additional Read: The Best Time to Take Out Securities For a Loan
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