Financial crunches have become an everyday thing, and everyone, irrespective of their present financial conditions, is equally vulnerable. Therefore, if you ever feel the need, go for a loan against security.
A loan against shares is a special type of mortgage loan which allows borrowers to mortgage their investment certificates such as mutual funds bonds, savings certificate, life insurance policy etc.
The borrower, however, can borrow only up to a fixed margin which is decided by the lender. Given that, it can range somewhere in between 40% to 60% of the assets current market value depending on the lender’s policy.
Perks of taking a loan against shares:-
Higher loan amount: The loan amount varies as per the pledged assets market value subject to a maximum of Rs 3.5 crore. Thus, you can always increase your borrowing ability by mortgaging an asset of higher value.
Dedicated Relationship Manager: LAS schemes such as Bajaj Finserv's loan against security comes with a dedicated relationship manager who is available for assistance 24X7.
Zero part prepayment and foreclosure charges: Apart from that, if you wish to part-prepay your loan balance, you can do so without any part-prepayment charges.
Hassle-free documentation: Even more, the documentation process is very easy. The application process requires only the basic KYC and the income proof.
Bottom line: Modern-day finance has led to many forms of easy financing options to make one’s life easy and stress-free. So, if you ever wish to or you ever need financial assistance, go for a loan against security without a doubt in your mind.