What is Loan Against Securities?
Loans Against Securities is available in the form of an overdraft facility which is pledged against financial securities like shares, units and bonds. Loan Against Shares/Bonds/Mutual Funds is basically a loan wherein you pledge the securities you have invested in as collateral against the loan amount. A Loan Against Securities is the best way to make your investments work harder and smarter for you.
What are the documents required for Loan Against Shares?
For an Individual borrower
- Pan card
- Aadhar card
- One cancelled cheque / bank statement
For a Company borrower
- MOA / AOA
- List of Directors
- Shareholding Pattern
- Board resolution
- Pan Card & Address proof of company & director
- Cancelled Cheque/ Bank Statement
What is Loan Against Shares?
Loan against shares enables you to borrow funds against listed securities such as shares, mutual funds, insurance and bonds to meet your current financial needs. You can opt for loan against shares when you need instant finance to meet your personal/business needs.
What is the interest rate for loan against shares?
Best loan offers one of the best interest rates on Loan Against Shares in India. To check your Loan Against Shares interest rates we have a calculator for you. Other charges such as processing fees, penal interest, secure fee and cheque bounce charges would be applicable. Now you can apply for a Loan Against Shares online and get approval within minutes.
What is a secured loan?
A secured loan is a type of loan in which a borrower pledges an asset such a car, property, equity, etc. against that loan. The loan amount made available to the borrower is usually based on the value of the collateral. If in case the borrower defaults the loan, the lender can liquidate the asset and recover the loan amount, making these loans risk-free for the lender. As a result, these loans are easier to obtain and charge a lower interest rate than an unsecured loan.
Types of secured loan
Usually a secured loan can be availed against the following types of collateral:
- Real estate, including any financial equity earned since purchasing the residence
- Bank accounts such as savings accounts and fixed deposits
- Commercial and residential property
- Private vehicles
- Stocks, mutual funds, or bond investments
- Insurance policies, including life insurance
- Precious metals, high-end collectibles, and other valuables
What is a loan against equity shares?
An equity share is commonly called a share that represent a part of ownership of a company. Here, every shareholder is a partial owner of the company and earns dividends based on the performance of the company.
Loan Against Shares are a convenient and easy way to avail high-value loans at affordable interest rates. In this type of loan, you can pledge your shares as equity to avail funds of up to 50-60% of their value of your shares. Best loan offers Loans Against Security of up to Rs. 10 crore.