What documents are required for a Rs. 10 lakh loan?
Applying for a high-value loan like this means you’ll need to provide a few essential documents. Here’s a list of what most lenders ask for:
- Identity and address proof
- Aadhaar card
- PAN card
- Passport, Driving license, or Voter ID
- Utility bills (as proof of residence)
- Income proof
- Salary slips (for salaried individuals)
- ITR or financial statements (for self-employed applicants)
- Investment proof
- Demat account statement for shares, bonds, or mutual funds
- Insurance documents for ULIP or endowment policies
- Loan application form
- Duly filled and signed as per lender guidelines
How to apply for a Rs. 10 lakh loan?
Applying for a loan against investments is straightforward. Follow these five steps:
Step 1: Choose your loan type
Based on your holdings, decide whether you want to apply against mutual funds, shares, bonds, or insurance.
Step 2: Check the terms
Compare interest rates, tenure, and LTV ratio (loan-to-value) across lenders.
Step 3: Confirm eligibility
Make sure you meet the basic criteria such as age, income, and asset ownership.
Step 4: Submit your application
Go online to the lender’s website and complete the application form.
Step 5: Upload your documents
Scan and upload KYC, income proof, and investment-related documents.
Step 6: Get approval and funds
Once verified, the funds are credited to your account, usually within 24 to 48 hours.
Need funds urgently without paperwork hassles?
Apply online for a loan against securities and get approval within hours. Apply now
Why choose a Rs. 10 lakh loan against investments?
Here are why many borrowers are opting for secured loans against their investments instead of personal loans:
Lower interest rates: Because you are offering your investments as collateral, lenders view this as low risk. That is why interest rates are typically lower compared to unsecured loans.
No need to sell your assets: Unlike selling your mutual funds or shares in a rush, this loan lets you retain your investments. They continue to earn returns while also backing your loan.
Flexible repayment plans: You can choose a repayment plan that fits your cash flow. Some lenders allow interest-only EMIs, while others offer bullet repayment, where you pay the entire principal at the end of the tenure.
Quick processing: Loans backed by securities usually require less documentation and get approved faster. For urgent financial needs, this makes them a more efficient option.
High loan amounts: Depending on the value of your assets, lenders may offer up to 80% of the current market value of your securities. This allows you to borrow larger amounts without extra paperwork.
Potential tax benefits: If you use the loan for business-related expenses, the interest paid may be tax deductible, making this loan even more cost-effective.
What are the risks involved in taking a Rs. 10 lakh loan?
While a loan against investments offers quick liquidity and lower interest rates, it’s important to understand the potential risks before borrowing a higher amount such as Rs. 10 lakhs.
- Market fluctuations: If the value of your pledged shares, bonds, or mutual funds drops, the lender may issue a margin call asking you to provide additional collateral or reduce your outstanding balance.
- Risk of asset liquidation: In case of non-payment or inability to meet a margin call, the lender may sell part or all of your pledged securities to recover the dues.
- Interest cost escalation: For compounding interest products, delays or missed payments can significantly increase your total repayment amount over time.
- Eligibility limits: Not all investments qualify as collateral, and the loan-to-value (LTV) ratio may vary based on the asset type and market performance.
- Impact on future borrowing: Defaulting or delayed repayments can affect your credit profile, potentially reducing your borrowing capacity in the future.
To mitigate these risks, borrow only what you need, track your portfolio regularly, and ensure timely repayments. This way, a loan against securities remains a smart and secure way to access funds when you need them most.
Final thoughts
Getting a Rs. 10 lakh loan does not have to mean selling off your investments or paying high interest. A loan against securities offers a smarter way to get the funds you need while your assets continue to grow. Just remember to compare loan terms, understand the repayment plan, and have your documents ready. Whether you apply against shares, mutual funds, bonds, or insurance this option gives you access to large funds with lower costs and fewer complications.
Ready to secure a Rs. 10 lakh loan today? Use your investments to unlock quick, low-cost financing with a loan against securities. Apply now
