There are loans available to fulfil all kinds of requirements such as the wedding, education, home renovation, setting up businesses, etc. These fall under the unsecured category as they do not require you to pledge any collateral as security. Then there are secured financial investment such as the gold loan, property loans, etc. They need you to keep gold or your properties as security. The loan amount is also dependent on the rate of your gold or estate. Another type of secured investment is a loan against shares .
What is a loan against shares?
Simply put, investors can get funds from lenders against their existing investment portfolios. The invested money can help you in getting a loan. Often people spend on such a loan as it is a short and long-term investment option. The securities that you can invest, however, differ from lender to lender. The lenders, in fact, have a list of securities to choose from.
Who can opt for a loan against shares ?
1) Traders
2) Industrialists
3) Businessmen
What are the benefits of opting for a loan against shares?
1) Interest rates: As compared to the unsecured loans the interest rates are generally lower for the secured ones. In secured loans such as loan against shares, there is some kind of asset kept as secur ity that the lender can liquidate in the event of non-payment . Also, you have to pay interest only for the money you utilise and not for the entire loan amount.
2) Flexibility: Loan against shares function pretty much like personal loans. They can be used for all kinds of purposes.
3) Hassle-free application process: This loan does not require a guarantor. If you have your documents in place such as application form, bank statement, ID proof, address proof, signature proof, age proof, income proof and your photograph in place, then processing of this loan is quick. If you have a Demat account, then it is an added advantage. Many firms send their representative to your residence to collect the documents and you are done.
4) Instant liquidity: Loan against shares also come handy to fulfil immediate requirements such as medical expenses, unplanned expenditures, etc. Instant money is always beneficial in such circumstances.
5) Short tenures: The tenure period is anywhere between 7 days to 1 year. Some banks also extend the time-frame. Also, if you wish to pay the entire amount before the stipulated period, no pre-payment charges are implemented.
6) Additional benefits: Considering you are the owner of the shares, you will reap its benefits. You will receive the perks from the stock, bonuses, dividends, etc. You get more value for your investment.
Some of the banks that offer the best loan against shares are Axis Bank, ICICI Bank, HDFC Bank, State Bank of India and Bajaj Finserv.
What is a loan against shares?
Simply put, investors can get funds from lenders against their existing investment portfolios. The invested money can help you in getting a loan. Often people spend on such a loan as it is a short and long-term investment option. The securities that you can invest, however, differ from lender to lender. The lenders, in fact, have a list of securities to choose from.
Who can opt for a loan against shares ?
1) Traders
2) Industrialists
3) Businessmen
What are the benefits of opting for a loan against shares?
1) Interest rates: As compared to the unsecured loans the interest rates are generally lower for the secured ones. In secured loans such as loan against shares, there is some kind of asset kept as secur ity that the lender can liquidate in the event of non-payment . Also, you have to pay interest only for the money you utilise and not for the entire loan amount.
2) Flexibility: Loan against shares function pretty much like personal loans. They can be used for all kinds of purposes.
3) Hassle-free application process: This loan does not require a guarantor. If you have your documents in place such as application form, bank statement, ID proof, address proof, signature proof, age proof, income proof and your photograph in place, then processing of this loan is quick. If you have a Demat account, then it is an added advantage. Many firms send their representative to your residence to collect the documents and you are done.
4) Instant liquidity: Loan against shares also come handy to fulfil immediate requirements such as medical expenses, unplanned expenditures, etc. Instant money is always beneficial in such circumstances.
5) Short tenures: The tenure period is anywhere between 7 days to 1 year. Some banks also extend the time-frame. Also, if you wish to pay the entire amount before the stipulated period, no pre-payment charges are implemented.
6) Additional benefits: Considering you are the owner of the shares, you will reap its benefits. You will receive the perks from the stock, bonuses, dividends, etc. You get more value for your investment.
Some of the banks that offer the best loan against shares are Axis Bank, ICICI Bank, HDFC Bank, State Bank of India and Bajaj Finserv.
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