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

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:-

1. Loan against property, commonly misunderstood as mortgage loan whereas it’s just a type. 
2. Home loan - the property being purchased is taken as collateral for the loan. 
3. 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:-

1. Loan amount varies as per the maturity value of securities subject to the maximum specified by the lender. 
2. Interest rates are lower given the presence of security.  
3. Your investment maturity value remains unhampered.    
4. 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

Since cash crunches have become a common phenomenon, having affordable funding solutions is an essential requisite. Having said that, these funding solutions need to be really affordable and accessible in order to be helpful.

For instance, a loan against mutual funds which lets people mortgage their mutual funds bonds and avail a loan against it can be a good option. However, in order to optimize the facility to a maximum, the applicant must be completely aware about all the ins and outs. Hence, on a similar note, below is a small guide on how to get a loan against property. 

What is a loan against mutual funds? 

A loan against mutual funds is a type of mortgage loan wherein the applicant gets to pledge their bonds and other securities as collateral to borrow a loan. The said facility can be availed from any bank or NBFC given the borrower has the required creditworthiness. The best part about this facility is, the borrower gets the desired financing while securing the maturity value of the investment at the same time.

How to apply for a loan against bonds? 

The application procedure is very simple. You can visit the nearest branch of the bank or NBFC you wish to proceed with for the loan and apply then and there. You can also use the online application feature provided by the lender to avail the loan. Just navigate to the online application feature, fill in the application form, attach all the necessary documents and then submit it. Once approved, the money will be disbursed directly into your bank account.

To know more about this facility, click here: A Handy Guide on How to Take a Loan Against Mutual Funds    

There arise many instances in our lives wherein we require funds on a short notice but we do not have the requisite amount in our savings. The emergency is of such a pressing nature that we cannot wait for a bonus or salary hike and the assets cannot be liquidated on such a short notice. Despite this many individuals go ahead and sell their assets at a loss and lose ownership as well.

What such people do not know is that instead of selling off their high-value investments such as mutual funds, they can apply for a loan against it. This not only helps in retaining ownership but they also continue to earn interest for the period during which they are pledged as a collateral.

Availing Loan Against Mutual Funds

There are a number of financial institutions including NBFCs (Non-Banking Financial Companies) which offer loan against mutual funds at nominal rates. One of the biggest benefits provided by NBFCs is that of the sanctioned amount, you have the liberty to use as much money as you require and pay interest only for the part that is used. This greatly reduces the installment which is paid each month.

Loan Against Mutual Funds

The process of application is very easy. Here’s how you can do it - 

1. Apply for the loan online
2. Fill out the application form with the basic details
3. A confirmatory text will be sent along with an email regarding the status
4. Next, a representative will visit you to complete the process and gather documents
5. Once your documents have been verified, the funds are disbursed in a very short span of time. 

You can also track the disbursal of the loan from the online account which is provided to you.

To know more about this loan facility, click here: How to Avail a Loan Against Mutual Funds

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

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

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?