Rs. 4 lakh Loan

A Rs. 4 lakh loan can be useful for various financial needs, including medical emergencies, education, home renovation, or business expansion. While traditional personal loans are an option, borrowing against investments such as shares, mutual funds, and insurance can be a more affordable alternative.

Loans against investments offer lower interest rates, flexible tenures, and faster approvals. They allow you to leverage existing assets without liquidating them, ensuring financial stability while fulfilling urgent monetary requirements.

This guide explores six ways to get a Rs. 4 lakh loan, eligibility criteria, required documents, the application process, and EMI calculations.

6 ways to get a Rs. 4 lakh loan

The table below highlights different loan products available to secure Rs. 4 lakhs, including interest rates, loan tenure, and application details.

Loan product	Interest rate	Loan tenure	Details and application link
ESOP Financing	up to 15% p.a.	Up to 36 months	Learn More and apply for ESOP Financing
Loan Against Bonds	Up to20% per annum	Up to 36 months	Learn More and apply for Loan Against Bonds
Loan Against Insurance Policy	Up to 24% p.a.(In case of lock-in policies, compounding interest will be chargedIn case of lock-in free policies, simple interest will be charged)	Up to 96 months	Learn More and apply for Loan Against Insurance Policy
Loan Against Mutual Funds	8-15% per annum	Up to 36 months	Learn More and apply for Loan Against Mutual Funds
Loan Against Shares	8-15% per annum	Up to 36 months	Learn More and apply for Loan Against Shares

Eligibility criteria for a Rs. 4 lakh loan

To qualify for a Rs. 4 lakh loan, applicants must meet eligibility and conditions as required for the loan variant. The following may or may not include all of them-

• Age: 18 to 65 years
• Income: Stable income source from salary, business, or investments
• Employment status: Salaried or self-employed professionals/business owners
• Asset ownership: Existing investments in bonds, shares, or insurance

Lenders may have additional criteria depending on the loan type and security offered. This is based on Bajaj Finance loan against securities.

Documents required for Rs. 4 lakh loan

Applying for a high-value loan requires specific documents. These generally differ by loan variant and:

Official Valid Documents (OVDs) for KYC:

• Identity proof: Aadhaar, PAN, Passport, Driving License or Voter ID
• Address proof: Utility bills, Driving License, Passport, or Aadhaar card

Other documents:

• Income proof: Salary slips, IT returns, or business financial statements
• Bank statements: Last six months’ statements
• Investment proof: Ownership documents for shares, bonds, mutual funds, or insurance policies
• Loan application form: Completed and signed form as per lender’s requirement

Additional documents may be needed based on the type of loan applied for.

How to apply for a Rs. 4 lakh loan?

Follow these steps to apply for a high-value loan:

1. Choose a suitable loan type – Compare ESOP financing, loans against bonds, or shares to find the right option.
2. Check eligibility criteria – Ensure you meet the lender’s requirements, including credit score and asset ownership.
3. Gather necessary documents – Keep ID proof, income proof, and investment details ready for faster processing.
4. Apply online or offline – Visit the lender’s website or branch to submit your loan application.
5. Get loan approval – The lender will verify documents, check credit history, and approve the loan if all conditions are met.
6. Disbursement – Once approved, funds are transferred to your bank account within a few days.
7. Loan to Value (LTV)- Loan-to-value (LTV) determines how much loan you can get based on the asset you pledge. You can get a loan of up to 50% against your shares.

These steps depend on any specific lender

Benefits of Rs. 4 lakh loans against investments

Opting for a loan against investments instead of a personal loan offers several benefits:

• Lower interest rates: These loans typically have lower interest rates compared to unsecured personal loans, making them a cost-effective borrowing option.
• No credit score dependency: Lenders do not focus on credit scores, as investments act as collateral, making approval easier.
• Quick processing and disbursement: Since investments back the loan, processing times are faster, with funds disbursed within hours or a few days.
• Retain investment growth: Borrowers can access funds without selling their investments, allowing them to continue earning returns.
• Flexible repayment options: Many lenders offer interest-only EMI options or flexible tenure choices based on financial needs.

Conclusion

A Rs. 4 lakh loan can be easily secured through different financing options, including loans against investments. Compared to personal loans, these secured loans offer lower interest rates, quicker approval, and better financial flexibility.

Before applying, assess your eligibility, compare different lenders, and understand the repayment terms. If you have existing investments in shares, bonds, or mutual funds leveraging them for a loan can be a smart way to access funds without disturbing long-term wealth creation.

Choose the right loan option based on your financial needs and repayment capacity to ensure a hassle-free borrowing experience.

Explore Loan Against securities by Bajaj Finance Limited