What comes to your mind when you are in need of a source of finance? It is personal loans, but these have a very high interest rate which increases the EMI and makes it difficult to manage your monthly expense. You might even consider liquidating your assets like shares, FDs, mutual funds. But you might lose on the lucrative benefits of the assets by doing so. How about availing loan on these assets rather than liquidating them to meet your financial needs?
You can pledge your assets such as shares as collateral in the loan against shares process. As this loan is secured, you are even eligible or low-interest rate without losing the ownership of your shares.
Here are some factors affecting loans against shares.
Make sure that the selected lender mentions share in their approved list. You can’t apply for the loan against shares if it doesn’t come under the approved list; regardless if the value of your shares.
You must conform to the eligibility criteria. You must be a salaried/ self-employed Indian citizen above the age of 21 years’ age to apply for the loan against shares process.
Your worth of investment must be within the mentioned range, which is usually Rs.10 Lakh.
These are some factors that affect the loan against shares process. Also, make sure to check the other terms and conditions of the loan before availing for it.
To know more about the loan against shares process and its factors, click here: Let’s Know About Loan Against Shares and Factors Affecting It