Loan Against Securities
Loan Against Securities: At times when you are in need of urgent funding; a loan against shares enables you to borrow funds against listed securities like shares, insurance, mutual funds and bonds to meet your current financial needs. You can apply for this loan when you need immediate liquidity for your personal/business needs, and you are sure to pay it back in a few months.
As per the Reserve Bank of India guidelines, loans against security of convertible bonds, shares, convertible debentures and units of equity-oriented mutual funds should not surpass the limit of Rs.10lakh if the securities are held in physical form and Rs.20 lakhs per individual in case the securities are held in Demat form.
Loan Against Securities: Eligibility
Individuals who are eligible for a Loan against Shares
- Resident Indians above the age of 18
- NRIs above the age of 18
- Proper documents
Documents required: Loan Against Securities
- Loan application form
- Proof of identity (any one of the following):
- Proof of residence
- Cancelled check
- Photograph
- Bank Statement 6 months
- Income Proof
- Latest statement of holding
- Pledge form for the creation of pledge
- Optional – Guarantor Form (Mandatory in the case of jointly held demat holding)
Additional Reading:
Features and Benefits of Loan Against Securities
EMI payments: No hassle on EMI payments. You may choose to service your Interest payments by way of credits in your account every month. Interest is calculated only on the amount of loan you use.
Extra charges: No burden of dealing with post-dated checks or pre-payment charges.
Approved Securities: Your options are unbounded.
Efficient Servicing: You can enjoy speedy and efficient service.
Loan amount: You can get up to 80% loan to the value of securities pledged.
Limit: You can avail of a minimum loan amount of Rs 1 Lac the maximum limit varies
Interest payments: You will have to pay interest only on the amount of loan you use. It will be calculated on the outstanding daily balance and debited to your account at the end of every month.
Banks and financial institutions: keep coming with a range of ways to accomplish your monetary requirements, your credit worthiness and paying capacity.
Applicable Tenure for LAS: Fixed tenure with an option to repay earlier with reciprocally agreed terms. (3 to 12 months)
This loan is a breathtaking opportunity to take care of your financial needs without liquidating your investments. Instant liquidity at your disposal!
Additional Readings: