1 min read
25 May 2021

While selling your carefully chosen securities to meet urgent cash needs may seem convenient, it can result in loss of potential gains that could be obtained in the long run. Instead, opting for a loan against securities can help you preserve the value of your securities for future growth and raise funds in the interim to tackle unexpected crises.

Here are five reasons why you should avail of a loan against securities.

1. High-value loans made easy

You can use your shares, mutual funds, FMPs, ESOPs, IPOs and bonds as collateral to avail of a loan against securities of up to Rs. 10 crore to fund your needs. The loan is versatile as it offers restriction-free use of funds and is easy to qualify for. Bajaj Finserv allows you to quickly apply for the loan online by submitting a simple application form.

2. Quick financing to attend to your urgent needs

Urgent monetary requirements come unannounced. For example, an emergency hospitalisation demands immediate attention and funds. Arranging sufficient funds during emergencies can be challenging. In such instances, liquidating your savings and investments could seem to be a convenient solution. However, instead of selling your securities, you can get instant funds with a loan against securities that offers approval in 24 hours, with the funds being disbursed to you within 48 hours of application. This swift application and disbursal process saves time and allows you to meet urgent fund deadlines for both personal and professional needs.

3. Get better ROI on your investments

You have built your investment portfolio using a diverse mix of varied securities keeping both short-term and long-term gains in mind. These instruments, when kept untouched, have the potential to grow and generate high returns over time.

Suppose you liquidate them before they mature or when the unsuitable market conditions will make you lose out on future profits. Here a loan against securities can come to your rescue. You can simply pledge your investments to raise funds while your equity holdings keep earning their share of profits and dividends from the market.

However, if you’re looking for instant financing, you can look for pre-approved offers by Bajaj Finserv, which can help you save time and simplify the process of funding. All you have to do is enter your basic details and check your pre-approved offer.

4. Borrow against a wide range of securities

No matter how diverse your investment portfolio is, you may still have preferences for putting up only certain securities as collateral. For example, if an FD contributes monthly returns that you need for household expenses, you will not want to pledge this investment for a loan.

Instead you may choose to pledge shares or even your bonds. This loan lets you pledge any security as collateral, be it mutual funds, fixed maturity savings, insurance or even scrips, etc., provided your security's minimum value is Rs. 10 lakh.

5. Convenient repayment terms

Pledging your high-worth securities and equity holdings ensures you can avail of a loan against them on easy repayment terms. To keep repayment burden-free, lenders allow you to foreclose or make part-prepayments on loan at no extra charge. Also, you can choose a tenor of your choice from a maximum of 36 months at your convenience.

These are some of the benefits that a loan against securities can offer you. Before applying, ensure you choose the right lender and decide the securities you would like to pledge. Have a sound repayment plan in place for a hassle-free experience.

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