Loan Against Assets: Loan Against Shares

Showing posts with label Loan Against Shares. Show all posts

Thursday, January 17, 2019

How to Get a Mortgage Loan Against Mutual Funds and Shares

If you ever planned on taking a loan or already have one on your name, you must be aware of the term mortgage. If you have no clue about it, mortgage refers to a legal agreement between a lender and a borrower. The lender (can be a bank, NBFC or a private financer) temporarily takes the title of the debtor's property with the condition that the conveyance of title becomes void upon the payment of the debt.

Now, a mortgage loan can be of different types. To name a few, Indian banking ecosystem has the following mortgage loan options:-

Loan against property, commonly misunderstood as mortgage loan whereas it’s just a type.
Home loan - the property being purchased is taken as collateral for the loan.
Loan against securities - the recent addition to an already wide category, allows borrowers to take a loan against mutual funds, share market bonds or any other security.

Assuming we all are well aware of the first two options; we’ll talk a little about the third option. Accordingly, loan against mutual funds/ shares/ other securities allows people to mortgage their securities and borrow a loan against it.

Loan Against Mutual Funds

Key features of loan against securities:-

Loan amount varies as per the maturity value of securities subject to the maximum specified by the lender.
Interest rates are lower given the presence of security.
Your investment maturity value remains unhampered.
Lastly, you get a good amount of time for repayment along with end-usage flexibility.

Thus, if you’re ever stuck amidst a cash crunch and don’t have plans to liquidate your savings, loan against mutual funds is your best sidekick.

To know more about the loan against shares and funds, click here: How to Use Mutual Funds and Shares as Collateral for a Loan

Loan Against Share/ Security: When’s the Right Time to Take it?

loan against shares in India

Sema Gupta 6:04 PM 0

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:-

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

Benefits of Taking a Loan Against Your Shares

Loan Against Shares

Sema Gupta 1:02 PM 0

Loan against shares is a secured loan and a smart way to liquify your fixed assets. The pledged collateral serves as a security and thus lets you avail the loan at lower rate of interest. This is a custom loan which can be taken for salaried as well as self-employed professionals.

Before you sign up for the loan here are important things about the loan you must know about -

You must compare loans from various lenders so as to make choose the most suitable offer, as per your financial needs. Being a secured loan it does not require you to pledge any fixed asset as collateral and thus can be obtained at a lower rate of interest.

When you apply for the loan against shares from any of the leading lenders you can apply for it online with basic paperwork. Upon verification, you can enjoy instant approval and quick disbursement. Though it must be noted that the loan terms may vary as per the lender’s criteria and your profile which includes your age, income, credit score, and value of property pledged as collateral.

It may be noted that lenders provide 60%-70% of the value of your property as a loan. To avail the maximum loan amount it is thus, advised to pledge the property which is free from any litigation and does not have any existing loan on it.

The best part is that as a borrower you can easily manage the loan online and make informed decisions during the loan cycle.

For the full blog, read here: Advantages Of Taking A Loan Against Collateral Assets

How Soon can You Get the Loan Against Share?

Loan Against Shares

Sema Gupta 11:42 AM 0

Investing in shares not only helps you diversify your portfolio but allows you to acquire funds against it when you need it the most. All you need are shares which can be pledged as collateral to avail the loan. This makes it a secured loan option and hence applicants can benefit from affordable interest rates levied on the loan.

Loan against your shares is an all-purpose loan which can be used to meet several kinds of financial obligations of the borrower. You may opt for the loan against shares from experienced lenders who understand your requirement and thus can offer up to Rs. 10 crores.

Another thing to consider while applying for the loan from major lenders like NBFCs is that you can easily apply online with minimum paperwork. Eligible applicants can avail instant loan approval and quick disbursement at an affordable rate of interest and flexible repayment tenure.

Though, it must be understood that the terms of the loan vary from lender to lender. Hence, the duration via which the loan can be obtained will vary as per the lender’s criteria and the applicant’s individual application.

Applicants can pledge a comprehensive list of Shares, Mutual Funds, FMPs, ESOPs, IPOs and Bonds as collateral for the loan. Thus, making it a secured option which is available at a lower rate of interest. There are nil part-payment and foreclosure charges on the loan which lets you manage it well.

While applying for the loan you get to manage it online via an account. This can be accessed from anywhere, at any time from the comfort of your home or office.

To know more about this loan facility, click here: How Much Time it takes to Get a Loan Against Shares?

Avail Loan Against Securities At Affordable Rate Of Interest

Sema Gupta 4:57 PM 0

At times when you are in urgent need of funds, availing loan against securities is a much viable option as it is a secured form of a loan. This means you can liquify your fixed investments without having to break them.

Besides, leading NBFCs to offer quick loan on securities with easy-to-meet eligibility criteria so you can avail a preferable loan amount.

You must be a resident of India

You must be at least 21 years of age when the loan is sanctioned

You must be a salaried or self-employed professional with a stable/ regular source of income such as a job

While basic documentation needed for the loan are:

ID Proof ( copy of Pan Card, Driving License, Aadhar Card Copy)

Address Proof

Document proof of Securities

Passport size photograph

The loan is available on a number of securities such as shares, mutual funds, FMPs, ESOPs, IPOs and Bonds which are accepted as security towards the loan. You can easily apply for the loan online.

Thus, giving you more options to pledge towards the loan. It can be managed and tracked on the customer portal where you can make repayments, get other details for the loan and accomplish much more.

Leading NBFCs to offer a high-value loan up to Rs. 10 crores at an affordable interest rate and flexible tenure. Opting for experienced NBFCs gives you access to dedicated Relationship Manager of the lender who can offer reliable advice and guidance to help you make informed decisions during the loan cycle.

Read More: Easy Way to Avail a Loan Against Securities at Lower Interest Rates

How Loan Against Shares Can Help You Fulfill Financial Needs?

Loan Against Shares

Sema Gupta 6:43 PM 0

At times when you need urgent finances without having to break your investments you may opt for loan against shares. A comprehensive list of securities which can be used to avail the loan are shares, mutual funds, FMPs, IPOs, Bonds and ESOPs. These can be pledged as collateral for the loan.

Once you apply for the loan against shares online by filling up a simple application form your lender’s Relationship Manager will get in touch with you. They will understand your requirement and ask you for basic documentation. The loan can be used to take care of several personal and professional finances such as setting up business, running business operations, buying equipment, manage wedding expenses, fund education and so on. While, basic documents required are ID proof, address proof, document proof of securities and passport size photograph.

On verification of documents you may get the loan disbursed within 24 hours. You may request for an online account to manage your loan. Receive your login details from the Relationship Manager and keep track of repayments, interest rate and amount paid off. Digitally accessing your account helps you keep tab of loan from anywhere anytime at your convenience without having to depend on the representative.

In case, you want to pay the loan before its due date you can easily do so. Most financial institutions and NBFCs would be happy to assist you without charging anything extra. Overtime, a foreclosure will benefit your credit score and you will be able to avail loans as per your financial needs.

Tips to Apply for a Loan Against Shares

Loan Against Shares

Sema Gupta 11:01 AM 0

Have you invested in shares or securities? Shares are market-linked securities, associated with high returns and high risk. It gives the flexibility to buy and sell the shares of your choice as the market change. What if you need some instant cash? How are you going to handle it? Do not think of selling off those shares to get the money. Rather, use your shares and securities as collateral and get a loan against shares.

If you are still confused about the fact that is it the right loan option for you, know the details about it. You can apply for the loan against shares and avail a high principal amount as loan

Lenders generally offer a loan against shares of around 50%-70% of the total worth of your shares. If you choose the best lender, you can get higher principal of loans. This amount may range from Rs.15 lakh to Rs.10 crore.

You can repay as per convenience

It provides the flexibility to choose a tenor of up to 12 months. You can repay according to your convenience, you can go for prepayment and foreclosure at no extra charge. You can also opt for Flexi loan.

You can enjoy the minimum eligibility criteria

You must be an Indian citizen of minimum 25 years of age and a salaried or self-employed professional with regular income. Some necessary documents that you need to submit are KYC documents, bank statement, Form 16 and income proof including payslips.

Read More :- What Should you Know about Loan Against Shares?

6 Benefits Of Loan Against Securities

Loan Against Shares

Sema Gupta 12:44 PM 0

Loan against security helps you avail instant finance without having to break your investments such as a mutual fund. It is a hassle-free method to liquidate your assets and get your instant cash needs met.

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

High Value Loan

You can avail a high value loan to meet your diverse financial needs, based on the value of your collateral.

Easy Account Management

You can apply online from anywhere by filling up the online application form. As a borrower, you can just use your login details to keep track of the loan cycle. You can check details such as repayment due dates, total repayment made, total loan due, interest rate and so on.

Pre-Approved Offers

Most financial institutions and NBFCs provide pre-approved offers. These are tailor-made as per the customer to take care of their immediate financing needs via loan against security.

Instant Approval

You can benefit from instant loan approval by applying online. Besides, you do not have to submit elaborate paperwork which further quickens the process, saving your time and effort.

Zero Additional Charges

You can prepay your loan, as and when you want and even opt to foreclose your account. All these are possible at your own time and at no additional charges.

Wide List Of Securities To Choose From

You can pick from a comprehensive list of securities such as shares, mutual fund, FMPs, ESOPs and Bonds which can be pledged as collateral.

4 Easy Steps to Obtain a Loan Against Securities at a Lower Interest Rate

Loan Against Shares

Sema Gupta 5:42 PM 0

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.

6 Major Benefits Of Owing Loan Against Securities

Loan Against Shares

Sema Gupta 1:26 PM 0

Loan against security gives you the easy option to get hold of instant cash without having to break your investments such as mutual fund, . The loan is easy to apply for and reaps appreciable profits, in the long run. You can borrow up to Rs. 10 crore to cover a wide range of financial needs. There are attractive Interest rates based for every borrower. Loan value is 50% (for equity shares), and 90% (for bank deposits) for securities.

Minimum worth of securities must be Rs. 25 lakh and you must be salaried or self-employed with a consistent income source. You can get the list of necessary documents on lender’s website. You get the option to choose convenient payment options with the lender.

Here are 6 major benefits of taking loan against securities.

Zero/ Low Cost

Leading NBFCs and banks do not incur any charge on loan against security. The processing fees of the application is considerable low and varies among lenders.

Attractive Interest Rates

Various financial institutions and NBFCs offer competitive interest rates ensuring the loan does not pose a heavy burden on the borrower.

Online Account

Applicants can keep track of every transaction and loan information such as EMI due dates, total EMI paid and so on.

Customer Help

There are dedicated online portal and Relationship Managers to guide applicants through the loan process.

Pre-approved offers

As per your eligibility, you can take advantage of various pre-approved offers. This means you get more value of the loan that you qualify for.

Read More :- Get the Top 6 Benefits of Loan Against Securities at a Glance

3 Advantages of Loan Against Security You Didn’t Know About

Loan Against Shares

Sema Gupta 2:41 PM 0

As a common man, it is an everyday thing for almost all of us to fall a victim to situations which demand immediate financial assistance. The annoying part is the catch-22 dilemma that comes with it. The biggest conundrum is to find out a fitting solution that helps in obtaining the required monetary support without diluting our long-term investments. In such scenarios, a loan against security turns out as a fitting option: offering the desired financial support against the entrusted security along with preserving it at the same time.

Now that's not all about loan against shares! Apart from the aforementioned benefit, there are a couple of other advantages which makes a loan against security an attractive option.

A higher limit to cover all your needs

The aforementioned scheme comes with a higher loan limit that simultaneously depends on the market value of your asset as well. This clause allows you to borrow the amount your desire by submitting a security of equivalent value. In simple words, you have the flexibility to borrow as per your need, given you don’t exceed the maximum limit specified by the lender.

Faster online approval

NBFCs are known for their faster loan approval process and minimal documentation benefit, you can expect the same in this scheme as well. The loan, once applied, won’t take more than 48 hours for approval.

Dedicated customer support managers

The availability of dedicated customer support personnel makes the scheme even more attractive. You can always turn to your dedicated manager and resolve your queries, whenever you have one.

In the end, before you apply for a loan against security, do your own maths and take the right decision.

Read More :- Get the 3 Advantages of Loan Against Security You Didn’t Know About

Things You Must Know About Loan Against Shares

Mutual Funds

Sema Gupta 4:10 PM 0

Loan against shares is a new member in the market, but it has gained prominence in a relatively lesser time. As per the scheme, an applicant owning share market bonds can apply for it and use his/her bonds as collateral to obtain the desired value as loan. Aside from that, the instrument allows you to preserve your investment along with helping you in taking care of your personal needs.

So, if you’re planning to liquidate your shares under the influence of an immediate cash need, wait and rethink your options. You can apply for the aforementioned scheme and satisfy your financial obligations. But before you do that, here are a few things you must know about a loan against shares.

Loan Against Mutual Funds - Bajaj Finserv

High borrowing limit: A loan against share comes with a comparatively higher borrowing limit which means you can avail a higher amount to get over with your needs.

A flexi line of credit: The scheme offers a flexi line of credit instead of a lump sum amount. This allows you to withdraw the amount from your loan account as per your need and pay the interest accordingly.

Low-interest rate: A loan against securities allows you the same flexibility as that of a personal loan. However, on the contrary, the same is available at a lower interest rate in comparison to a personal loan.

Higher flexibility: As a borrower, you get the end-usage flexibility along with the choice to decide an appropriate repayment tenor for yourself.

In the end, whenever you plan to take this loan, back-up your decision with adequate research and market analysis to turn your debt in your favor.

Read Also :- Everything You Should Know About Loan against Mutual Funds

Factors Involved Loan Against Shares

Loan Against Shares

Sema Gupta 2:55 PM 0

Shares are the brilliant options to get a higher return on investment. It is one of the most flexible investment options where you can buy or sell your shares as per your convenience and as per favourable market condition. You will always get the option to sell your shares to meet the financial crunch. But, what if you get a better option? Why don’t you keep your shares as collateral and arrange the money for you?

You may find the various financial institution that will offer you a loan against shares but choose the best one.

What all benefits you can enjoy out of a loan against shares?

You can avail a loan with a high principal amount, which can be up to 50% of the total worth of your shares. However, this may vary from one lender to another. If you choose any renowned NBFC like Bajaj Finserv, you may get loan amount ranging from Rs.15 lakh to Rs.10 crore. They help to get you a loan quickly, loan approval in 5 minutes and disbursal in 72 hours.

You can get maximum flexibility as you can repay the loan comfortably within 12 months. You can opt for prepayment and foreclosure facility without paying any extra charge.

Read More :- 5 Things You Should Know About Loan Against Shares

How To Get Benefitted From A Loan Against Shares?

Loan Against Shares

Sema Gupta 2:41 PM 0

Do you have the passion for investing in mutual funds or shares? Shares are great investment options, only if you have the understanding of the market and securities. They provide higher liquidity and the ability to generate funds, but they also involve higher risk factors where you may lose all your money. But if you can take the risk and are able to play well, you can earn a lot. How can you gain more from shares? One more way of availing funds using shares is by using them as collateral and avail a loan in exchange. It will help you to raise finance for short-term needs as you can get instant money without giving up ownership of your shares.

Benefits Of A Loan Against Shares Are:

Managing Working Capital Requirement- The requirement can be shifting to a bigger office or expanding the office space or seeking funds to pay suppliers while awaiting payments from clients, such loans can be of great help.

Paying Medical Bills- Medical emergencies can appear anytime and it can be expensive enough to tackle with the regular income. Then, you can apply for a loan against shares and get instant approval and timely disbursal in 72 hours, so that treatment never hampers.

Handling Any Unexpected Expense- A situation may appear where you need a huge amount of money to handle any unexpected damage.

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Key features of loan against securities:-

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The benefits:-

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While basic documentation needed for the loan are:

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

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A higher limit to cover all your needs

Faster online approval

Dedicated customer support managers

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What all benefits you can enjoy out of a loan against shares?

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Benefits Of A Loan Against Shares Are:

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