Loan Against Shares (LAS) is a financial tool that allows you to access funds by pledging your shares as collateral. It's a convenient way to borrow money without selling your investments. Unlike traditional loans, LAS often offers lower interest rates and flexible repayment terms.
Why consider a Loan Against Shares?
Here are some reasons why you might consider a Loan Against Shares (LAS):
- Preserve your investments: You can access funds without selling your valuable shares.
- Lower Interest rates: LAS often comes with lower interest rates compared to traditional unsecured loans.
- Quick disbursement: The loan approval and disbursement process is usually faster than traditional loans.
- Flexible repayment: Many lenders offer flexible repayment options to suit your financial needs.
- Tax benefits: In some cases, the interest paid on a loan against shares may be tax-deductible.
Eligibility criteria for applying for a loan against shares
To be eligible for a loan against shares from Bajaj Finance, you must meet the following requirements:
- You must be a resident of India
- Your age should be between 21 years to 90 years
- You must be self-employed or a salaried employee
- You should have a minimum holding of shares worth Rs. 50,000
Corporates, HUFs, LLPs, partnerships, trusts, and sole proprietorships can apply for loan against shares of up to Rs. 1,000 crore by reaching us at las.support@bajajfinserv.in.
Step-by-step guide to taking a loan against shares from Bajaj Finance
Step 1: Meet the eligibility criteria
Before applying for a loan against shares from Bajaj Finance, ensure that you meet all the eligibility requirements. If you do not meet the eligibility criteria, your loan application may get rejected.
Step 2: Check the loan amount
The maximum loan amount that Bajaj Finance offers against shares is up to 50% of the value of your shares. So, check the current market value of your shares to know how much loan amount you can avail of.
Step 3: Submit the application form
Once you confirm the loan amount, the next step is to submit the loan application form online.
Step 4: Provide the required documents
To process your loan application, you need to submit the following documents:
- KYC documents (Aadhaar/ passport/ voter’s ID)
- PAN card
- Demat holding statement
Step 5: Wait for approval
Disbursement shall be done post successful verification and pledging.
Factors to consider before applying Loan Against Shares
Consider these factors before taking a Loan Against Shares.
- Market volatility: Fluctuations in share prices can impact the loan amount and repayment.
- Margin calls: Potential requirement to deposit additional funds or sell shares.
- Interest rates: Compare rates from different lenders.
- Repayment capacity: Ensure you can meet repayment obligations.
- Regulatory compliance: Understand the rules and regulations.
- Long-term financial goals: Assess the impact on your investment strategy and risk tolerance.
Benefits of taking a Loan Against Shares from Bajaj Finserv
Here are some key benefits of taking a Loan Against Shares (LAS) from Bajaj Finserv:
- Quick disbursement: Receive funds quickly to meet urgent financial needs.
- Minimal documentation: A streamlined process with minimal paperwork.
- Competitive interest rates: Enjoy attractive interest rates on your loan.
- Flexible repayment options: Choose a repayment plan that suits your budget.
- Online application and tracking: Manage your loan conveniently through digital platforms.
- No prepayment charges: Repay the loan early without any penalty fees.
- Top-up facility: Access additional funds as needed.
- Easy eligibility criteria: Simple eligibility requirements to qualify for the loan.
Conclusion
In conclusion, taking a loan against shares from Bajaj Finance is a straightforward process. By following these steps, you can apply for a loan against your shares and get the necessary funds to meet your expenses.
