Lending institutions and banks frequently offer loans to clients with collateral. There is no need to sell your shares as you have the option to commit them rather. The bank and other relevant financial firms will grant you access to an overdraft facility depending on pledged securities. In addition to setting up loans against shares, users can utilize the service by insuring their FDs, insurance, and mutual funds. You can choose a loan between Rs. 5 lakh and Rs. 5 crore. Furthermore, depending on a variety of conditions, the interest rate could vary from 10% to 18%.
Process to apply for Loan Against Securities in India
To facilitate transactions, it is important to have a current account with the proper bank. On the basis of the required timeframe and amount to be withdrawn, rate of interest is calculated. A loan against securities is a short-term loan with shares as collateral. If you are looking for loans with low interest rates, getting a loan against your shares can be a wonderful idea. In India, a debtor can apply for either online or offline LAS.
Online Process
Almost every Indian bank now accepts online applications for securities-backed loans. The overall process is quick and simple. Go to the bank’s website and click on the ‘Apply Now’ button to apply for a credit. You must provide the bank’s details and submit the necessary papers. Once the bank has verified the information and evidence you submitted, the loan money will be transferred to your bank account.
Offline Process
You can bring the required documents to the nearest bank of the lender from whom you want the loan. A bank representative will then help you with the loan against securities application procedure.
Eligibility criteria
- The applicant must fall within the age range of 18 and 65 years old.
- The applicant must be an Indian national who lives permanently in India.
- The applicant must be able to show a reliable source of income, and the bank must accept the pledged security.
Conclusion
A revolutionary new financial product on the market is a loan against securities.
Choose Rurash, the best lending company in India, to qualify for this loan. We offer low interest rates for loans secured by collateral beginning at just 8%!
If you want to know more about it, check out Rurash Loan against securities product offering or connect us at: https://rurashfin.com/.
