Loan Against Securities
LAS is a Financial product that has gained significant popularity in India in recent years. It offers Individuals and Businesses a convenient way to access funds by using their Securities, such as Stocks, Mutual Funds, or Bonds, as collateral. This type of loan provides a cost-effective and efficient solution for those looking to meet their short-term Financial needs without selling their valuable investments.
LAS is a form of secured lending in which Borrowers pledge their Financial assets as collateral to obtain a loan. These assets typically include Stocks, Mutual Funds, Fixed-Income instruments, and other Financial Instruments. Lenders, often Banks and NBFC’s, provide Loans against these Securities, with the Loan amount being a certain percentage of the total value of the pledged Securities.
Key Features of Loan Against Securities:
Diverse Eligible Securities
Borrowers can pledge a wide range of Financial Instruments, including Equities, Mutual Funds, Bonds, and Government Securities.
Loan-to-Value (LTV) Ratio
Lenders determine the loan amount based on the LTV ratio, which usually ranges from 50% to 80% of the total value of the Securities.
Quick Approval and Disbursal:
LAS typically has a faster approval process compared to other loan types, and the funds are disbursed promptly.
Interest Rates
Interest rates on LAS are often lower than those on unsecured loans because of the collateral involved.
Repayments Option
Borrowers can choose from various repayment options, such as interest-only payments or regular EMI (Equated Monthly Installments).
No End-Use Restriction
Unlike other loans, LAS doesn't have any restrictions on how you can use the funds, making it a flexible option.
Eligibility and Documentation
Eligibility Criteria
- Age: Generally, borrowers should be between 18 and 70 years of age.
- Ownership of Securities: You must be the legal owner of the securities you want to pledge.
- CIBIL Score: A good credit score is often a requirement for loan approval.
Documentation Required
- Proof of Identity and Address.
- Proof of Ownership of Securities.
- PAN Card.
- Passport-size Photographs.
- Loan Application Form.
Benefits of Loan Against Securities:
Quick Access to Funds:
- LAS offers speedy loan processing, ensuring that you can meet your financial
needs promptly.
Lower Interest Rates:
- The interest rates are usually more competitive than those for unsecured loans.
No Need to Sell Assets:
- Borrowers can maintain their investment portfolio while obtaining the required
funds.
Flexible Repayment Options:
- LAS offers various repayment options to suit individual preferences.
No End-Use Restrictions:
- Use the loan amount for any purpose, be it for personal, business, or
investment needs.
Contacts
- LOCATION NAME
H-1/203, Second Floor, Garg Tower, Netaji Subhash Place, Pitampura, New Delhi 110034
- CALL NOW
+ 91 9811 222 929
- CONNECT THROUGH MAIL
sales@shubhmudra.com
Get in touch today, let's get started...
In conclusion, LAS is a valuable Financial Instrument for those looking for convenient and cost-effective short-term funding solution in India. It allows Individuals and Businesses to leverage their Investment portfolios without the need to liquidate assets. Always consider seeking professional financial advice to make informed decisions.