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

Running a successful business means an everyday struggle to ensure that it keeps running smoothly.

When you have a business, there is a continuous struggle to make it run smoothly. The biggest part of this situation is generating regular funds that can be used as working capital. Apart from being able to do an adequate amount of business, there are other ways to generate funds as well.

One of the best ways of doing so is by using asset-based loans using which business of all sizes can raise the required capital to ensure that their business keeps running smoothly and helps it tackle emergencies better.

Collaterals Which Can be Used

There are many collaterals which can be used when it comes to asset-based loans, a few of which are as follows -

Invoices

This is something which many entrepreneurs do not know about but the due invoices can also be used as collateral to secure the loan. These are the bills which are generated when your company has already provided the required service to another company or customer and awaiting payment.

Machinery

If you are into manufacturing or any other business which involves making use of machinery, then the same can be used collateral to obtain the loan without any hassle. You also become eligible for a higher loan amount.

Benefits of an Asset-Based Loan 

Stability

Not just any stability, but financial stability which is something that most entrepreneurs seek when running a business as such a loan ensures that your operations are running smoothly and without any operations.

No Restrictions

Asset-based loans do not come with any end-usage restrictions. Thus, you can use it for any kind of business-related need be it stocking inventory, hiring more experienced staff, or renovating or upgrading existing infrastructure etc.

To know more about the asset-based loans, click here: Can a Business Use Asset-Based Loans?

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

Buying a home is a big financial decision. Thus, proceed with it only if you have these three things figured out:-

1. Your income is sufficient to pay the EMIs and then manage your monthly needs alongside having just enough to save for definite future expenses. 
2. Secondly, you have enough savings to pay for the down payment. 

While the first thing - understanding whether you have enough to manage your present and future expenses alongside paying the EMIs won’t be difficult, having enough savings to pay the downpayment might be tricky for you.

Even though you might have investment securities on your name which could be liquified to arrange the required sum, taking a loan against them might be a better option. Doing so would not only preserve the maturity value, it ensures your other financial goals don’t have to be postponed.

What is a loan against securities? 

A loan against securities in India works on the similar concept as that of a loan against property. You can mortgage your investment securities such as mutual funds bonds, stock bonds, company FD certificates etc. to avail a loan against them. That said, the loan amount would vary based on the market value of the product.   

Advantages of taking a loan against securities in India for paying the downpayment of your home

• A higher loan amount is available (mortgage an asset with higher maturity value and you’ll get a higher amount as a loan).
• A longer repayment tenor.
• Lower interest rates for the loan.  

Bottom line: Even the eligibility criteria is pretty easy to qualify.

To know more about the loan against securities, read this full article here: Use The Loan Against Securities Money to Fund Your Home

Although, most people think that a traditional life insurance policy is the one which offers benefits in case of death of the policyholder. However, with time several products got added to the initial policy to help you save and invest better. One of which is the feature of getting a loan against your policy.

But before you think of getting loan against your life insurance policy it is important to know if this lending will make sense to you. You may get in touch with your policy provider to analyse the impact of loan on your policy with in-force illustration.

Loan against life insurance policy

Whether taking a loan against your life insurance a good decision, let’s find out - 

Easy to borrow - It may be noted that borrowing from your insurance company will be easier since you are already their member. Here, the cash value of the policy acts as collateral against the loan. In case of failure to pay it back the lender can take away the cash value of the policy or the death benefits of the policyholder to compensate their claims.

Requires planning - One must plan cautiously and closely monitor the cash value and loan so as not to default and to manage your finances effectively. You can make use of in-force illustration to know the impact.

Plan the loan - You can only get the loan against your policy when you have built a substantial cash value. The right time to avail the loan can be discussed with the representative of your insurance provider to help you make the right decisions.

For more information related to this, read this full blog: How to Easily Avail Loan Against Life Insurance Policy

Financial crisis can hit anyone, at anytime. Instead of giving into panic you can take loan against your investments. This is a traditional yet quicker method to liquidate your fixed assets. If you are not sure how to go about it I suggest your conduct a primary research online. You will find numerous lenders especially NBFCs which offer proper guidance and support to help you get the loan.

One of the benefits of getting a loan against mutual funds is that you do not have to redeem your units before time. It also makes sure that your SIP or Systematic Investment Plan does not get affected , in any way. 




The best part is as most of the information is online it saves your time. You do not have to meet the lender in person to finalize the deal. However, you can always do that if you have time for one-on-one interactions. With digitisation taking over it becomes easier to manage the loan against mutual funds online. You can track it anytime from anywhere and take informed decisions during the loan cycle.

In order to get the loan it is important you know the eligibility criteria for the process. Usually, lenders provide the loan to applicants -

Whose mutual fund or collateral in this case is of a certain minimum value and they all the paperwork stating the same. Additionally, lenders prefer applicants who have a stable source of income such as a job. This ensures the lender that the applicant is capable to pay back the loan.

For more information read this article: 6 Things to Know About Loan Against Mutual Funds

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.

The benefits:-

1. The cash need is met alongside preserving the investment. 
2. 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

There are many individuals who require a loan but due to the absence of any property they are unable to avail it. So what is the next best option for them? - Loan against securities. The purpose of this loan is the same as loan against property that it allows people in dire need of money to avail a loan. The difference however is that instead of a property as a collateral, they pledge their securities which can include mutual funds, shares, securities, bonds etc. 

The biggest benefit here is that not only are such loans disbursed quickly but it also comes in handy in situations where applicants do not want to liquidate their financial assets. Applicants can look forward to loans of up to Rs. 10 crores from many lenders including NBFCs (Non-Banking Financial institutions).

However, during the application process most applicants tend to worry the most about is the documentation. It is worth noting that the documentation needed for applying for loan against securities are the basic KYC ones such as Aadhaar Card, Pan Card, or a copy of your driving licence. In addition, you will require proof of securities, address proof and passport-sized photographs. Thus, the documents needed are of a very basic nature.

As for eligibility, one needs to be at least 21 years of age, be a citizen of India, be salaried or self-employed with a regular source of income. There are other conditions too but they too are very basic in nature and vary depending on the lender from whom you are availing the loan.

To know more about the documents needed or the eligibility criteria of the financial institution from where you want to avail your loan against security, make sure you visit their website to have all the information and make a decision.

For more information related to documentation and application read, full blog here: Documents Required to Get Loan Against your Financial Securities

If you have ever invested in shares, bonds, insurance, securities, etc. and you have adequate amount of shares with you individually, you can easily keep the shares as securities with the bank or NBFC and get a loan against shares.




Choose a lender offering a high loan amount

Generally, you can get loan approval of 50% to 70% of the value of the securities.

But remember, you can get funds worth several crores when you opt for a loan against securities. But, all lenders won’t allow you to get a higher loan amount, so you need to choose a lender that offers a higher amount. However, it is important to research the market so that you are able to select a lender who gives you the maximum value for your holdings.

If you choose Bajaj Finserv, you can get up to Rs.10 crores with approval in 24 hours and disbursal in 48 hours, it is the best way to raise funds for all your needs.

The best part is they accept a variety of securities as collateral for this loan, including shares, mutual funds, bonds, insurance policies, ESOPs, etc. and can get financing up to 85% of the value of your securities.

The other factors are: 

• Ensure that your securities fall under the approved list.
• Match eligibility criteria of loan against securities and submit required documents.
• Apply online by filling in your details.

Read more tutorials here about the loan against securities 

Know 3 major benefits of availing a loan against security.

1. ID proof: Pan Card, Aadhar Card, Driving License etc. which are authorized by the state or the central government as a valid ID card is accepted. Most of the listed documents can be also used as address proof. 
2. Document proof of securities i.e the insurance policy bond/agreement. 

1. Processing fees: can be in between 0-1% of the loan amount.
2. EMI bounce charges: the same varies according to the lender's policy. 

Let’s take a look at its 6 other major benefits.

A higher limit to cover all your needs

Faster online approval

Dedicated customer support managers

Benefits Of A Loan Against Shares Are: