How to avail Loan Against Bonds
Frequently asked questions
If you have a minimum of Rs. 50,000 bonds in your demat account, you can apply for a loan against bonds with Bajaj Finance. Against the bonds you can get loan amount ranging from Rs. 25,000 to Rs. 5 crore.
You can apply for loan against bonds by clicking on the ‘Apply’ button on this page. Fill in your personal details, and the value of your bonds. Accordingly verify your details through an OTP.
Corporates/HUF/LLP/Partnership can apply for loan against bonds of up to Rs. 1000 crore, by reaching us at firstname.lastname@example.org
A loan against bonds (LAB) is a type of loan where the customer pledges their bonds as collateral to obtain a loan from Bajaj Finance. The process of obtaining a loan against bonds typically involves the following steps:
a. Evaluation of bonds: The lender will evaluate the bonds that the borrower wants to pledge as collateral. The lender will consider the value of the bonds, the market conditions, and the risks involved.
b. Loan amount: Based on the evaluation of the bonds, Bajaj Finance will determine the maximum loan amount that can be provided. Bajaj Finance offers loan up to 60% of the market value of the bonds.
c. Loan terms: The borrower and Bajaj will agree on the terms of the loan, including the interest rate, repayment period, and any other conditions.
d. Pledge of bonds: The borrower will pledge the bonds as collateral with Bajaj Finance, corresponding to which the loan amount will be disbursed to the borrower.
e. Repayment: The borrower must repay the loan amount along with the interest within the agreed-upon period. If the borrower fails to repay the loan, Bajaj has the right to sell the pledged bonds to recover the loan amount.
In summary, a loan against bonds provides a way for borrowers to access funds while still retaining ownership of their securities