Instant Loan Against Securities

Getting an instant loan against securities is quick and simple:

1. Select a lender: Compare different lenders offering loans against securities.
2. Submit your application: Apply online or offline with your details.
3. Pledge your securities: Provide the securities you want to use as collateral.
4. Verification and approval: The lender checks eligibility and approves the loan.
5. Complete documentation and create pledge: Sign the agreement and create the pledge.
6. Loan disbursement: Funds are credited directly to your account.

Use your shares or funds as security, access cash quickly without disturbing your investment goals. Apply now

Instant loans against securities allow borrowers to access funds by pledging eligible investments as collateral. Depending on the lender and the type of security, different investments may be used to secure the loan. Common types include:

Loan against shares

How it works: You pledge eligible shares as collateral to secure a loan against their value.

Eligibility: Listed equity shares of eligible Indian companies, subject to the lender’s approved list.

Benefits: May offer faster access to funds, potentially lower interest rates than unsecured borrowing, and the ability to retain ownership of the pledged shares.

Loan against mutual funds

How it works: You pledge eligible mutual fund units as collateral to obtain a loan against their value.

Eligibility: Eligible units from approved mutual fund schemes, subject to the lender’s criteria.

Benefits: May provide quick access to funds while allowing the pledged units to remain invested. The units remain subject to a lien until the loan is repaid and the pledge is released.

Loan against insurance policy

How it works: You use an eligible life insurance policy as collateral to secure a loan based on its applicable surrender value.

Eligibility: Eligible policies with a surrender value, such as certain endowment and whole-life plans. Term insurance policies generally do not qualify.

Benefits: May provide access to funds without surrendering the policy, allowing the policy to continue subject to its terms and regular premium requirements.

ESOP financing

How it works: You pledge eligible vested Employee Stock Ownership Plan (ESOP) shares to raise funds against their value.

Eligibility: Vested ESOP shares from eligible companies, subject to the lender’s criteria and applicable conditions.

Benefits: May provide liquidity without requiring an immediate sale of the shares, while ownership of the pledged shares remains with the borrower subject to the terms of the pledge.

When you apply for a loan against securities, the lender evaluates the value of your pledged securities and determines the loan amount based on a Loan-to-Value (LTV) ratio, typically it is up to 50%. The securities remain in your account but are marked as collateral. Interest is charged on the loan amount, and you can continue to receive dividends and benefits from your securities. The loan can be repaid in flexible terms, and once repaid, the pledge on the securities is lifted.

1. Quick access to funds: Get funds without selling your investments.
2. Retain ownership: Continue to benefit from dividends and price appreciation of your securities.
3. Flexible repayment: Choose from various repayment options to suit your financial situation.
4. Lower interest rates: Typically lower than unsecured loans due to the collateral provided.

Preserve your portfolio and still get cash, choose a loan against securities for flexible financing. Explore now

To apply for a loan against securities, you will need the following documents:

• Identity proof: Aadhaar Card, Passport, Voter ID, or Driving Licence.
• Address proof: Utility bills, Passport, Aadhaar Card, or Voter ID.
• Demat account statement: Showing the details of the securities being pledged.
• Bank statements: Recent bank statements for verification.

Eligibility for an instant loan against securities generally depends on the lender’s criteria and the type of investment being pledged. Common requirements include:

• Age: Applicants are generally required to be within the lender’s specified age range, which may typically be around 21 to 70 years.
• Eligible securities: Lenders may accept approved securities such as listed shares, mutual fund units, bonds, and debentures, subject to their eligibility criteria.
• Income proof: Some lenders may request income or financial documents to assess the applicant’s repayment capacity.

Here is a simple step-by-step guide to help you apply online for an instant loan against securities.

Step 1: Check eligibility

Start by reviewing the lender’s eligibility criteria. Typically, you must own eligible securities such as shares, mutual funds, or bonds in your name. Some lenders may require a demat or folio account and a minimum holding value.

Step 2: Submit documents

Upload basic documents online such as your PAN card, ID proof, address proof, and details of the securities to be pledged. E    nsure all information is accurate to speed up verification.

Step 3: Get approval and disbursal

Once verified, your loan request is approved instantly. The pledged securities are marked as collateral, and funds are disbursed directly into your bank account often within a few hours.

Interest rates for loans against securities are typically lower than unsecured loans, starting from around 8-15% per annum. Factors influencing the interest rates include the type of securities pledged, the loan amount, and the borrower’s credit profile. Additionally, lenders may charge processing fees, documentation charges, and other miscellaneous fees. It is advisable to compare offers from different lenders to find the best terms and conditions.

An instant loan against securities is a quick, flexible, and cost-effective way to access funds without selling your assets. By pledging your shares, or mutual funds you can meet urgent needs and still benefit from future returns. This solution keeps your portfolio intact and your financial plans on track.

Need quick cash while holding onto your investments? Secure an instant loan against securities today and keep your wealth growing. Apply now