Features and benefits of Bajaj Finance Loan Against Bonds
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Features and benefits of a Loan Against Bonds
Get loan against a wide list of approved bonds at attractive rates
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Loan of up to Rs. 5 crore
Without selling your bonds, avail pre-assigned loan limit of up to Rs. 1000 crore.
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Wide approved list of bonds:
With our extensive list of approved bonds, you can avail loan of up to 95% of market value of the bonds. Check the approved list of bonds.
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Interest only on utilisation:
You only need to pay interest on the withdrawn loan amount, making it a cost-effective option for borrowers.
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Multiple eligible bonds
You can avail loan against government bonds, PSU bonds, corporate bonds, etc.
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All DP bonds are acceptable
Individuals having Demat account with any depository participant are eligible for loan against bonds with us.
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Continue earning your returns
Pledge your bonds and get loan against them, while earning dividends on your bonds.
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Dedicated customer portal (My Account)
Download your loan statement and manage your loan online with our customer portal – My Account.
How to avail Loan Against Bonds
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Frequently asked questions
A loan against bonds is a type of loan offered by banks and financial institutions, where a borrower can pledge their bonds as collateral to obtain a loan. Here are some of the features of a loan against bonds:
a. Collateral: Loan against bonds is a secured loan where bonds are used as collateral. The amount of loan depends on the value of the bonds pledged.
b. Loan amount: The loan amount is typically a percentage of the market value of the pledged bonds. For Bajaj Finance it is 95% of the market value of the bonds.
c. Repayment: The borrower can repay the loan amount in EMIs (equated monthly installments), which includes both principal and interest.
d. Prepayment: Bajaj Finance allows the borrower to prepay the loan amount before the due date at up to 4.72% of the loan amount (inclusive of applicable taxes).
You have the option to pledge a variety of approved bonds from over 40+ Asset Management Companies (AMCs) when applying for a loan against a bond with Bajaj Finance.
A loan against bonds is a type of loan that allows individuals to borrow money by pledging their bonds or securities as collateral. Here are some benefits of taking a loan against bonds:
- Lower interest rates: Since the loan is secured, lenders usually offer lower interest rates compared to unsecured loans. The interest rates are determined based on the value of the bonds, the loan amount, and other factors.
- No need to sell bonds: By pledging bonds as collateral, the borrower can get access to funds without having to sell their bonds. This can be beneficial in case the borrower is holding bonds that are expected to appreciate in value.
- Flexible repayment options: The repayment options for loan against bonds are usually flexible, allowing borrowers to choose a tenure that suits their needs.
- Interest only on utilised amount: Of the total assigned limit against your bonds, the customer has the option to withdraw only the required amount, and interest is paid only on the withdrawn amount.
- Multipurpose use: The funds obtained through a loan against bonds can be used for various purposes like funding a business, purchasing a property, financing education, medical expenses, etc.
Yes, you can use your bonds as collateral to secure a loan through a product called Loan Against Bonds. This allows you to pledge your bonds with a lender in exchange for funds without selling the bonds themselves. The loan amount is typically a percentage of the bond's market value, and interest rates may vary depending on the bond's rating, tenure, and market conditions. This can be a useful way to access liquidity while retaining ownership of your investments.
