We have all been there, facing an urgent financial need but not wanting to break your long-term investment plans. That’s where a loan against securities comes in. Imagine accessing quick funds without having to sell your shares or securities. Whether it's for an emergency, business opportunity, or personal needs, securing a cheapest loan against securities could be the solution you've been looking for. Let’s explore how you can unlock the value of your shares and get cash in your hands, without losing control of your investments.
Ready to access liquidity without disrupting your investments? Get started!
What is a loan against securities?
A Loan Against Securities allows you to borrow funds by using your investments such as stocks, bonds, mutual funds, and fixed deposit as collateral. This means you don't need to sell your assets to access liquidity. Instead, you can leverage their value to get the funds you need while retaining ownership of your investments. It’s an ideal solution for urgent financial needs, offering competitive interest rates and flexible repayment options.
No need to sell your investments. Leverage them smartly to get the liquidity you need! Apply now
How does a loan against securities work?
Here’s a quick look at how a loan against shares works:
- Eligibility check:
Lenders evaluate the shares you want to pledge. The loan amount depends on the market value of your securities, with most lenders offering up to 50-90% of that value. - Loan sanction and collateral assignment:
Once approved, your securities are pledged as collateral, but you retain ownership. The lender holds them as security until the loan is repaid. - Disbursal of funds:
Funds are typically disbursed within 48 hours* after the loan is approved, ensuring that your liquidity needs are met fast. - Flexible repayment terms:
You can choose between standard EMIs or opt for a flexi loan, where you only pay interest on the amount used, offering more flexibility.
Why choose a loan against securities?
- Quick access to funds:
Unlike unsecured loans, which can take days to process, a loan against shares can be approved and disbursed quickly, often within 48 hours*. This is ideal when time is of the essence. - Keep your investments intact:
A significant advantage of this loan is that you don’t have to sell your shares. You can continue to hold onto them while still benefiting from any capital gains. - Lower interest rates:
Being a secured loan, the interest rates are generally lower than personal loans, making it an affordable option for urgent liquidity. - Flexible repayment plans:
Whether you choose a lump sum or monthly repayments, the flexibility of repayment options makes it easier to manage your finances without additional stress. - Loan amount based on security value:
The amount you can borrow is based on the value of the securities you pledge. Generally, you can access 50% of the market value of your shares, which means you can borrow substantial amounts based on the value of your holdings.
