How To Acquire Loans Against Securities?

Posted by nidan narkhade on April 24th, 2018

There are numerous ways through which banks and financial institutes strive to fulfill the loan needs of every individual or entity as per their paying back capacity. One of the methods in acquiring loans is through Loan Against Securities or (LAS).

Loan against securities simply implies that a borrower pledges the refunding of a loan against insurance policies, loan against shares, or loan against mutual funds. Some of the following securities that can be pledged to the banks are non-convertible debentures, UTI bonds, Demat shares, NSC/KVP in Demat form. A disclaimer, you cannot get a loan against all or any shares. There are some pre-defined shares that a bank lists. Those are the shares which will be accepted.

The loan that can be acquired with the redeeming of these securities varies between 60 to 70% of the actual value of the securities. For e.g., if your stock portfolio is worth Rs 10 lakh, then you can avail a loan of Rs 5 to 7 lakhs. This too depends on the liquidity of the stocks. The great advantage of obtaining a loan against securities is that you will be charged an interest only on the amount that you tend to withdraw from the account. The other benefit of utilizing this scheme is that there is no requirement of a personal guarantor for a loan against shares.

These benefits add up as a boon as you are made available easy cash when you required it the most. Also, you can simultaneously enjoy the rights of receiving dividends, and bonuses along with benefiting from the price activities that take place in the shares for which the loan is been availed in the first place. All in all, it is a great option to meet your short-term financial requirements. Also, the interest you need to pay up LAS is quite reasonable.

JMFL helps you acquire LAS in the most profitable manner possible. Their team of experts will guide you systematically with the paperwork and provide you with the best possible way to acquire the loans.