6 Benefits of Applying for the Loan Against Securities in India

loan against securities

A large number of people in India have started to invest.

Some of the popular investment options are mutual funds, bonds, shares, equities, FMPs, IPOs, ESOPs, fixed deposits and others. Other than offering the investors with a higher amount of interest-based profits, they also offer many more benefits.

One of the benefits of having invested in any securities is that you can apply for a loan against securities. Many times in life, you may face situations that may force you to liquidate your securities. However, when you liquidate your assets, you lose your earned interest on them if you break them before the tenor.

Hence, you can stay invested in your investments, and yet acquire a higher amount of loan. How is that even possible? Most of the leading banks and non-banking finance companies (NBFCs) let you apply for a loan against securities in India.

If you are unaware of the concept and benefits of the loan against securities, you are at the right place to know more.

What is the loan against securities facility?

The loan against securities (LAS) facility is nothing but a facility that will help you grab some amount of money when you pledge your assets. Lenders would need to keep your investment securities as collateral or security to offer you a high value of the loan. In most of the cases, the value of your portfolio should be Rs.10 lakh to apply for LAS. The maximum amount that you can apply for is Rs.10 crore.          

What are the benefits of the loan against securities?

When you apply for a loan against securities, you are sure to grab many benefits. Here’s a quick look at some of those amazing benefits:

  • The facility to grab up to Rs.10 crore

Be it your personal or professional needs; you can seize up to Rs.10 crore from leading banks and non-banking finance companies (NBFCs). As a result, you can fulfill all your diverse needs without looking anywhere else for funds.

  • Dedicated Relationship Manager

Applying for the loan against securities with known lenders will help you enjoy the services of a Relationship Manager. They are available 24/7 to help resolve all your LAS account related queries.

  • Zero foreclosure and part prepayment fees

Are you willing to make some part prepayment or foreclose the account before the stipulated tenor? You can do that. And to do that, you don’t have to pay any charges or fees to most of the lenders these days.

  • Online loan account management

Do you wish to access your loan account details from anywhere and round-the-clock? The digital customer portal of your lender will let you do that. You can easily track the loan account as the lender will provide you with the login details to access its customer portal.

  • Wide list of approved securities

A majority of known banks and online lenders have a large list of approved securities that you can apply for the loan against securities in India. Some of the standard approved lists of securities include mutual funds, shares, FMPs, ESOPs, bonds, and IPOs.

  • Hassle-free documentation

You don’t need to worry about arranging many documents while applying for the loan against securities facility. Do you have your ID and address proofs, documented securities proof, passport-sized color photographs, and Salary Slips? Then, you won’t face issues in getting approval.

Do you need some funds to cover vital needs in life? Have you invested in securities? You can simply apply for a loan against securities and get started.

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