How can loans against securities unlock your financial potential?
A loan against security is a type of secured loan where you use your financial assets, such as stocks, bonds, or mutual funds, as collateral to borrow money. This allows you to access funds without selling your investments. The lender evaluates the value of the securities and provides a loan based on a percentage of their current market value.
Loans against securities unlock your financial potential by providing immediate liquidity while preserving your investment portfolio.
- Retain Investments
- Tax Efficiency
- Diversification Maintenance
- Portfolio Stability
- Immediate Liquidity
- Rapid Approval
FAQs
Frequently asked questions on Financial planning
A loan against securities is a facility where you can pledge your securities, such as shares, mutual funds or bonds, to avail of a loan without having to sell them.
Interest rates for LAS vary based on the lender, the type of securities, and market conditions. They are generally lower than unsecured personal loans.
If the market value of the pledged securities falls below a certain threshold, the lender may ask you to provide additional securities or repay a part of the loan.
Commonly accepted securities include shares, mutual fund units, bonds, government securities, and insurance policies.
The loan amount depends on the value and type of securities you pledge; typically, it ranges from 50% to 80% of the market value of the securities.
