Rs. 5 Lakh Loan

Loans against investments offer a quick and cost-effective way to access funds without liquidating assets. If you need Rs. 5 lakhs, borrowing against your existing shares, bonds, or mutual funds can be a smart move. These loans typically offer lower interest rates than personal loans and allow you to continue earning returns on your investments.

Many lenders in India provide Rs. 5 lakh loans against investments with attractive interest rates and flexible repayment terms. Whether you need funds for business expansion, medical emergencies, education, or personal expenses, these secured loans can provide a reliable financial cushion.

This guide explores six different ways to get a Rs. 5 lakh loan, the eligibility criteria, the documents required, and a step-by-step application process. You’ll also find a comparison of EMIs across loan types to help you choose the best option for your needs.

6 ways to get a Rs. 5 lakh loan

Loan product	Interest rate	Loan tenure	Details and application link
ESOP Financing	up to 15% p.a.	Up to 36 months	Learn More & Apply for ESOP Financing
Loan Against Bonds	Up to20% per annum	Up to 36 months	Learn More & 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 & Apply for Loan Against Insurance Policy
Loan Against Mutual Funds	8-15% per annum	Up to 36 months	Learn More & Apply for Loan Against Mutual Funds
Loan Against Shares	8-15% per annum	Up to 36 months	Learn More & Apply for Loan Against Shares

Eligibility criteria for a Rs. 5 lakh loan

To qualify for a Rs. 5 lakh loan against investments, applicants must meet the following criteria:

• 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

Each lender may have additional eligibility conditions, so checking individual lender policies before applying is important.

Documents required for a Rs. 5 lakh loan

Lenders require a set of documents to process your loan application. Here’s a checklist:

KYC documents

• PAN Card (Mandatory for financial transactions)
• Aadhaar Card, Voter ID, Driving License or Passport for identity and address verification

Financial documents

• Salary slips (last 3 months) for salaried individuals
• Bank statements (last 6 months)
• ITR (last 2 years) for self-employed applicants

Investment proof

• Demat account statement for shares, bonds, and mutual funds
• Insurance policy details for loans against insurance

Providing complete and accurate documentation speeds up the loan approval process.

How to apply for a Rs. 5 lakh loan

Applying for a Rs. 5 lakh loan against investments is simple and involves the following steps:

Step 1: Choose the right loan type

Decide whether you want a loan against shares, mutual funds, bonds, or insurance based on your investment holdings.

Step 2: Compare interest rates & loan terms

Check interest rates, LTV (Loan-to-Value) ratio, and repayment tenure before applying.

Step 3: Submit an online application

Visit the lender’s website and fill out the loan application form with personal and financial details.

Step 4: Upload required documents

Attach identity proof, investment details, and income documents for verification.

Step 5: Approval and disbursement

Once verified, the loan amount is approved and credited to your bank account within 24-48 hours.

Benefits of Rs. 5 lakh loans against investments

Lower interest rates than personal loans

Since these loans are secured, interest rates are lower than unsecured personal loans.

No need to sell investments

Borrowers can access funds without liquidating their investments, allowing them to continue earning returns.

Flexible repayment options

Loan tenures range from 1 to 5 years, giving borrowers ample time to repay.

Quick approval and disbursal

With minimal documentation, the loan is processed within a few hours to a few days.

High loan-to-value (LTV) ratio

Lenders offer 50% to 80% of the investment’s value as a loan, ensuring substantial borrowing capacity.

Tax benefits on specific loans

Interest paid on loans against shares, bonds, or mutual funds may be claimed as a tax-deductible expense if used for business purposes.

Conclusion

A Rs. 5 lakh loan against investments is a smart and cost-effective alternative to personal loans. It helps individuals access funds quickly while keeping their assets intact. With lower interest rates, minimal paperwork, and fast approval, this financing option is ideal for business needs, medical emergencies, education, or other financial goals.

When selecting a lender, it’s important to compare interest rates, eligibility criteria, and loan terms. Choosing the right loan against shares, bonds, mutual funds, or insurance can help you meet financial needs without disrupting your investment growth.

Before applying, ensure you have the necessary documents and a clear repayment plan to avoid financial strain. With the right approach, a loan against investments can be an excellent tool for financial flexibility and stability.

Explore Loan Against securities by Bajaj Finance Limited.