Loan against bonds is an easy way to get finance by serving your security as collateral. It is popular due to its low-interest rate, as you hand over your security documents to the financial institution. Applying for a loan against bonds is very simple. Here is a step by step instruction list.

1. Choose the right lender

Research online and select a lender which provides the maximum offers and offers online application.

2. Check your eligibility

You must be a salaried/ self-employed Indian citizen who is above 21 years. Moreover, the minimum value of your security must be Rs.10 Lakh. This eligibility differs from one lender to another.

3. Calculate the interest

Use the lender’s online calculator to check the interest, tenure, and EMI of the loan against bonds.

4. Apply online

Collect all the documents such as ID proof, address proof, passport size photograph, document proof of securities. Submit after attaching them to the application. You can apply offline, but you will save a lot of time if you apply online.

The lender will process your application, and if sanctioned; will transfer the fund to your bank account. The entire process to apply for a loan against bonds will hardly take a few days.

To Know more about the financing through a loan against bonds, click here: Loan Against Bonds – An Easy Way to Acquire Finance

Since the time I have been investing I wonder how actually can mutual funds be of use. Though, I would admit that these investments have been quite a nail-biting experience for me. But, nonetheless they have offered me appreciable returns.

Well, to my surprise my financial planner told me that now that I have made appreciable returns on my mutual funds I can take a loan against them. I am thrilled because I am planning an exotic vacation with family and now I feel I won’t have to withdraw from my savings.

So, I took out time form my schedule and sat down with my financial planner how to go about it. She suggested me an experienced lender with credibility and reputation. Then, depending on the amount I needed she helped me fill up the form for the loan against mutual funds online. After which, we won’t have to wait loan and can enjoy instant approval for the loan.




Trusting my financial planner I took the bargain and applied for a loan amount which would cover my entire vacation itinerary and which I can easily pay back on a monthly basis. I was thrilled to get the loan as planned and moreover I suggested my colleague for the same as he too needed funds to manage his mother’s treatment expenses.

The best part is I don’t have to take the help of my financial planner often. As my loan is all set up online I make sure the repayments are on time and that I track and manage it even when I am out of town for business work.

Also read: Did you Know you can Get a Loan Against Your Mutual Fund Units