5 ways to get a Rs. 4 lakh loan
Here are some loan products you can explore:
Loan product
|
Interest rate
|
Loan tenure
|
ESOP financing
|
Up to 15% p.a.
|
Up to 36 months
|
Loan against bonds
|
8–15% p.a.
|
Up to 36 months
|
Loan against insurance policy
|
Up to 24% p.a.*
|
Up to 96 months
|
Loan against mutual funds
|
8–15% p.a.
|
Up to 36 months
|
Loan against shares
|
8–15% p.a.
|
Up to 36 months
|
*For lock-in policies, interest is compounded. For lock-in free, simple interest applies.
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Eligibility criteria for a Rs. 4 lakh loan
To qualify for a Rs. 4 lakh loan, you must meet the lender’s basic requirements. These conditions help lenders ensure you can repay comfortably. Here’s what is generally expected:
- Age – You should be between 18 and 90 years old at the time of applying.
- Income – A steady income source is important, whether it’s from a regular salary, self-employment, or investments.
- Employment status – Both salaried professionals and self-employed individuals, including business owners, can apply.
- Asset ownership – You need to have existing investments such as bonds, shares, mutual funds, or insurance policies to pledge as security.
Some lenders may also have extra requirements based on the type of loan or the security you offer. Checking these beforehand can save time and make the approval process much smoother.
Own investments? You could be just a few steps away from quick funding. Apply now
Documents required for a Rs. 4 lakh loan
When applying, having all your paperwork ready can speed up approval and help you get the funds faster. Most lenders will ask for the following:
- Identity proof – Aadhaar, PAN, Passport, Driving Licence, or Voter ID.
- Address proof – Recent utility bills, Driving Licence, Passport, or Aadhaar card.
- Income proof – Salary slips, Income Tax returns, or audited business financial statements.
- Bank statements – Statements for the last six months to show your transaction history.
- Investment proof – Ownership documents for shares, bonds, mutual funds, or insurance policies you’re pledging.
- Application form – Completed and signed, as per the lender’s guidelines.
Some lenders might ask for additional paperwork depending on the loan variant.
How to apply for a Rs. 4 lakh loan?
Applying for a loan is straightforward if you follow the right steps:
- Choose your loan type – Compare different options, such as ESOP financing, loan against shares, or loan against mutual funds, and pick the one that fits your needs.
- Check eligibility – Review income requirements, asset ownership criteria, and any specific lender guidelines.
- Prepare documents – Gather your KYC documents, income proof, and investment papers in advance.
- Apply online or offline – Submit your application either through the lender’s website or by visiting a branch.
- Get approved – The lender will verify your details, check your asset value, and approve the loan if you meet all conditions.
- Receive funds – Once approved, the loan amount is credited to your account often within hours or a couple of working days.
Apply in minutes, get funds in days without disrupting your investments. Get started
Benefits of Rs. 4 lakh loans against investments
Here is why many people prefer loans against investments over unsecured loans:
- Lower interest rates – Because these are secured loans, the interest is often much lower than personal loan rates.
- No credit score dependency – Your investments act as collateral, so approval is often easier even if your credit score isn’t perfect.
- Faster processing – Many lenders can disburse funds within hours once documents are verified.
- Retain investment growth – Your pledged shares, bonds, or mutual funds continue earning returns while the loan is active.
- Flexible repayments – Options like interest-only EMIs or custom repayment schedules make repayment more manageable.
Loan-to-Value (LTV) explained
When you pledge investments, the lender calculates your eligible loan amount based on the Loan-to-Value ratio (LTV). For example, if you pledge shares worth Rs. 8 lakh and the LTV is 50%, you may be eligible for a loan of Rs. 4 lakhs. This approach prevents over-borrowing and ensures both you and the lender stay financially protected.
Tips to increase your approval chances
Here are few tips to increase your approval chances:
- Keep your investment documents updated and accessible
- Maintain a good repayment history to boost your credibility.
- If possible, choose a shorter loan tenure this often results in lower interest costs overall.
- Be ready with all documents before applying to avoid delays.
Conclusion
A Rs. 4 lakh loan against investments can give you the perfect balance of quick access to funds, competitive interest rates, and the ability to keep your assets intact. Whether you are managing a personal need or funding growth plans, it is a smarter alternative to selling investments or opting for high-cost credit.
Unlock the power of your portfolio borrow without letting go of your investments. Apply now
