Financial emergencies can strike anyone without giving intimation in advance.
If you invested in some shares, mutual funds, bonds and more, selling them to get instant cash might seem convenient. However, breaking them before their maturity may lead to a loss of potential interest gains.
As a result, the purpose of investing in them may fail to lead to dissatisfaction and disappointment.
Nonetheless, here is a facility known as the loan against shares that can help you. You can stay invested in the plan and also get access to cash at lower interest rates.
Have you invested in a loan against shares and need some urgent money without breaking it before the tenor? You can apply them for a loan against shares.
Loan against Shares eligibility criterion
To apply for the loan against securities, you will need to meet some basic eligibility terms and conditions such as:
- The applicant needs to be an Indian citizen
- You should be at least 21 years of age
- You should have a consistent flow of income – salaried, or self-employed professional
- The minimum worth of your LAS portfolio needs to be at least Rs.10 lakh
Documents Required to Avail Loan Against Shares:
You will also need to furnish the following documents along with meeting the eligibility criterion such as:
- ID Proof (PAN Card, Aadhaar Card or Driving License)
- Address proof (Aadhaar Card)
- Documented proofs of the invested securities
- Recently clicked color passport size photograph
Some people may not be convinced to keep their LAS as collateral. As a result, we have clubbed some vital reasons for applying for the loan against shares facility. Read on!
Key reasons why you should apply for the loan against shares
You get to enjoy a high-value loan
You are free to use your shares, mutual funds, bonds, IPOs, ESOPs, and FMPs as collateral. This way, you can apply for the loan against shares for as high as up to Rs.10 crore to fund your diverse needs. There are no restrictions on how you use the loan amount and make it versatile. Leading banks and non-banking finance companies (NBFCs) provide the loan against shares facility. You can do that quickly by applying online.
Quick financing to attend to your urgent needs
When you need money, you need it urgently and can’t keep waiting. Lenders understand the concern of the customers. As a result, when you apply for a loan against shares, you can get an approval in 24 hours and money disbursal in 48 hours. The quick application and disbursal process saves time. It also lets you meet your fund deadlines for professional and personal requirements.
Get better ROI on your investment
You may have built your investment portfolio using a mix of securities keeping in mind the short-term and long-term gains. If you don’t touch or break them before maturity, they can let you fulfill many of your financial goals in life. Any financial emergencies requiring money may prompt you to break them and lose your ROIs. Nonetheless, with the loan against shares facility, you can stay invested. As a result, you could also see your money grow to fulfill all your future needs and aspirations.
You can borrow against a large range of securities
Not just the loan against shares, you can borrow against a wide range of securities such as bonds, mutual funds, IPOs, FMPs, and ESOPs. As a result, no matter where you have invested, you can keep it as collateral and get some urgent money.
Some of the major reasons to apply for the loan against shares are now enlisted. If you have invested in it and needed some money, you can apply for a loan against shares.