Secured loans like loans against securities have lesser interest rates than unsecured loans with no collateral. Such loans are cost-effective compared to personal loans and credit cards. Additionally, loans against securities back you to get finances for emergencies without selling your property or shares. This way, do not lose out on the benefits of the long-term assets, especially when it comes to loans that are secured against property, shares, mutual funds etc. Additionally, it allows you to get the highest loan amount at lower interest rates.
So What Are Loan Against Shares?
Loans against shares, as the name signifies, is offered by NBFCs or banks where one can pledge shares as collateral against the loan amount. You can avail of this loan as an overdraft or demand loan.
Loans against shares are great for emergency funds without selling the shares, especially the investments that return more long-term value. If the share value drops during the loan tenure, the lender may ask you to raise the value by adding more shares to the collateral.
Documents Required for Loan Against Securities
- Filled Application Form
- Recent Photograph
- ID proof
- Address Proofs
- Bank Account Statements
- Demat Account Proof
- Demat/Mutual Fund Holding Statement
- Proof of Income
Fullerton India offers the best loan against shares where you can get liquid cash without trading your assets. We offer you funds between 5 lakhs to 5 crores against mutual funds or shares at a 10 to 18 per cent floating interest rate.
