There may be times when you instantly need funds to meet your emergencies or to grab a business opportunity. By choosing the loan against shares, you can definitely fulfill your financial needs without liquidating your investments.
The loan against shares facility offers you an opportunity to monetize the listed investments like mutual funds, equity shares, bonds, and debentures. You can liquidate these investments to raise capital for your personal or business funding needs.
Your securities act as the collateral against your loan, and you don’t have to give any additional security to take the loan.
Want to know the best part? You can avail all the benefits of having a loan right from quick processing to attractive interest rates, while still maintaining your portfolio.
Let’s know more about this loan facility and enjoy the benefits.
Features and Benefits of Loan Against Shares
- Big Loan Amount
To fulfill your personal and financial needs, you can avail the benefit of a high loan amount. A minimum of Rs.15 lakh is offered that can go up to a maximum amount of Rs.10 crore.
- Quick Approval
To initiate the loan process with immediate effect, lenders provide the facility of online approval in 5 minutes. This makes the loan processing faster and convenient for the borrower who is in immediate need of money.
- A Managerial Assistance
Most of the popular lenders offer you a dedicated Relationship Manager, who works on your behalf right from the initial stage of the loan processing. He/she will assist you 24/7 and will entertain all your requests.
- No Extra Charges
To facilitate the repayment of your loan and to make it light on your pocket, any extra fee like foreclosure or part-payment fee is not charged by the lenders. It simply means that you don’t have to pay any additional charges other than your loan principal and interest amount.
- Digital Access
Considering the growing digital space and busy schedule of customers, lenders have grabbed the opportunity and has given the online access to the loan account to their customers. Using which they can get all the details of their loan and access all details anytime and anywhere.
How to Apply for a Loan Against Shares?
To apply for this loan, you need to follow these steps:
Step 1: Fill the online application form available at the lender’s website.
Step 2: Receive a confirmation e-mail and SMS to know the status of your loan application.
Step 3: Submit the asked documents to the lender’s representative, who will initiate and take the loan process further.
Step 4: You will get the loan amount in your loan account after the verification of the submitted documents. You will also get the login details of your loan account to access it digitally.
But, before applying for a loan against mutual funds, you should check whether you are eligible for it or not.
Eligibility Criteria to Qualify for the Loan Against Shares
- You must be an Indian resident
- You must be of 25 years of age at the time of loan sanction
- You should be a salaried or self-employed individual, with a regular source of income
- You should carry the securities of a minimum value of Rs.25 lakh
Now, when you the eligibility criteria for loan against shares, you must know what will be the necessary documentation required for taking the loan.
- KYC documents
- Photograph of the applicant
- Income details with your latest pay slips
- Demat account statements for the past 6 months
- Bank account statements for the past 3 months
The Bottom Line
Now when you know all about a loan against shares, it’s the time to leverage your investments in shares for loans to meet the unforeseen expenses. Opt for the loan against shares and avail the discussed benefits.
Happy loan application!