Financial emergencies could compel selling off your investments in haste. Getting a loan against stocks offers a viable alternative to get the cash you need without liquidating long term investments.
Select to pledge your stocks for a loan instead, because:
Ownership
By availing a loan against securities you do not consign the ownership of your investments to the bank. You still hold the ownership and you continue to accumulate the returns on your investment. Sanctioned loan amount typically is between 50℅-90℅ of the value of the stocks used as collateral.
Interest
Leading banks offer low-interest rate on loan against stock as compared to unsecured loans since the loan against stocks is secured with collateral. Leading banks charge 12-15%. Interest, on the daily outstanding balance.
Flexibility
The flexibility offered by the loan against stocks makes them comparable to personal loans i.e. one can use the loan amount for the purpose of their choice. With no prepayment penalty, short loan tenures that are extendable, the flexibility offered is massive.
Application process
The loan application process is simple, online, and requires very little paperwork and legwork. The paperwork demands the submission of the photograph, identity proof, address proof, signature proof, DOB proof, income proof, bank account statements. The process is as simple as opening a bank account and does not need a guarantor.
Instant liquidity
Instant disbursal of the loan amount is another great advantage of getting a loan against stocks.
To know more about the benefits of loan against stocks, click here: 5 Reasons to go for the Loan Against Stocks
Select to pledge your stocks for a loan instead, because:
Ownership
By availing a loan against securities you do not consign the ownership of your investments to the bank. You still hold the ownership and you continue to accumulate the returns on your investment. Sanctioned loan amount typically is between 50℅-90℅ of the value of the stocks used as collateral.
Interest
Leading banks offer low-interest rate on loan against stock as compared to unsecured loans since the loan against stocks is secured with collateral. Leading banks charge 12-15%. Interest, on the daily outstanding balance.
Flexibility
The flexibility offered by the loan against stocks makes them comparable to personal loans i.e. one can use the loan amount for the purpose of their choice. With no prepayment penalty, short loan tenures that are extendable, the flexibility offered is massive.
Application process
The loan application process is simple, online, and requires very little paperwork and legwork. The paperwork demands the submission of the photograph, identity proof, address proof, signature proof, DOB proof, income proof, bank account statements. The process is as simple as opening a bank account and does not need a guarantor.
Instant liquidity
Instant disbursal of the loan amount is another great advantage of getting a loan against stocks.
To know more about the benefits of loan against stocks, click here: 5 Reasons to go for the Loan Against Stocks
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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