Effective Methods of Generating Liquidity - Loan Against Securities / Mutual Fun

Posted by sanchit sawant on December 3rd, 2019

You may have tonnes of investment and monetary assets belonging to you or your business. But, there may come certain situations where you fall short of funds. In other words, you may require funds liquidity on urgent basis at certain junctures. In such scenarios, you are likely to think about taking a loan. But, imagine the high interest rate and paying off those EMIs for a long period of time. Such a burden is not necessary especially when you have other ways of raising liquidity. Options like loan against mutual fund or loan against securities as offered by financial firms can help!

You have invested your hard-earned money into mutual funds or securities. And when the need arises, you have the option to leverage such investments without having to sell them off completely. At the end of the day, the whole purpose of investment in such instruments was to generate wealth and earn better percentage of profits over a long period of time. However, instead of taking loans and bearing the brunt of interest rates, you can opt to take loan against such financial instruments for a particular duration. The money that gets generated this way can be used as a business loan, for short term working capital, or similar other obligations that you may require to fulfil.

How does the amount of the loan get decided? Well, whatever is the overall value of your mutual fund holdings or security holdings, you generally get a certain percentage of the same as your loan. It makes sense to have such processes handled by a financial advisory firm (and NBFC) like JMFL that is known for lending money via various loan instruments, along with the right advice. JMFL is also into merger and acquisition of companies, which makes them quite capable of handling various financial advisory and consulting needs. M&A advisory firms like JMFL allow you to not panic whenever your company needs to acquire a smaller company that has the requisite skillset that your organisation needs.