People with bad credit may find it difficult to get an unsecured loan from any lender (considered a score below 650). When certain individuals apply for a loan, lenders commonly impose higher rates of interest. As a result, such individuals choose a Secured Loan, wherein lenders do not use credit scores to qualify. The most common question before applying for a secured loan is, “Is it possible to take a loan against shares from a bank?” Clients regard shares as one of the most renowned investment products. Without a doubt! Following the deposit of your securities, you would then usually be given a loan against shares as an overdraft facility in your account. You can withdraw funds from the account, and you simply pay interest on the loan balance and the time frame for which it is used. The low-interest rate is one of the benefits of a bank-provided Loan Against Shares. You must presume that it is the sole benefit. No, there are a number of other additional benefits for you. Aside from that, we will inform you of the characteristics of this loan facility provided by various banks.
The Benefits of Loan Against Shares from Different Indian Banks-
Now that you’ve learned about the advantages of Loan Against Shares, you should also be aware of the features offered by various banks in India. Look at them down below!
One can take a loan against securities or shares from financial service providers, visit https://rurashfin.com/loan-against-securities for advice from industry experts.
- SBI Loan Against Shares Facility
SBI, India’s largest lender, enables you to raise money against your equity investments. Customers can select a loan amount varying from INR 50,000 to INR 20 lakh with a reimbursement term of 30 months with the SBI Loan Against Shares facility. The last loan balance, however, will be determined by the total market value of your share. The loan cannot surpass 50% of the value of the shares. Customers will also be required to provide a margin amount of 50% of the current market value of shares that you pledge as security. The loan can be acquired through a Demand Loan or an Overdraft Loan, depending on your circumstances. The service charge is 0.75 percent of the loan amount plus GST, with a minimal level of INR 1,000. Keep in mind that this fee is never reimbursable.
- HDFC Bank Loan Against Shares
Through HDFC Bank Loan Against Shares, customers can borrow up to 50% of the current value of their shares. The greatest feature of this loan is that it is acquired in three simple steps through Online Banking, and the loan balance will be placed into your account. The entire process will be performed without the need for paper. Clients can get a loan for as little as INR 50,000, which they can use for whatever they desire.
- ICICI Bank’s Loan Against Shares Facility
Customers can get an Overdraft facility up to a specific amount by vowing their shares in favor of ICICI Bank through the Loan Against Shares facility. Furthermore, the bank will only charge interest on the amount utilized and for the time frame used. Customers can borrow up to 50% of their shares’ current market value for loan amounts varying from INR 50,000 to INR 20 lakh. The repayment period is one year, with the choice to renew each year at the final moment.
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