Loan against Bonds Features and Benefits

Read on the know why our loan against bonds the best option for you.

Features and benefits of Bajaj Finance Limited 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

  • Loan of up to Rs. 5 crore

    Loan of up to Rs. 5 crore

    Without selling your bonds, avail pre-assigned loan limit of up to Rs. 5 crore.

  • Wide approved list of bonds:

    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.

  • Interest only on utilization:

    Interest only on utilization:

    You only need to pay interest on the withdrawn loan amount, making it a cost-effective option for borrowers.

  • Multiple eligible bonds

    Multiple eligible bonds

    You can avail loan against government bonds, PSU bonds, corporate bonds, etc.

  • All DP bonds are acceptable

    All DP bonds are acceptable

    Individuals having Demat account with any depository participant are eligible for loan against bonds with us.

  • Continue earning your returns

    Continue earning your returns

    Pledge your bonds and get loan against them, while earning dividends on your bonds.

  • Dedicated customer portal (My Account)

    Dedicated customer portal (My Account)

    Download your loan statement and manage your loan online with our customer portal – My Account.

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How to Calculate Value of Loan Against Bonds

The value of your loan against the pledged bonds depends on the market value of your bonds. You can pledge your bonds as security to us, and in return, BFL provides a loan with a pre-determined interest rate.

How to avail Loan Against Bonds

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Step-by-step guide to avail loan against bonds

Step 1: Click on ‘Apply’ to initiate your application.
Step 2: Enter your mobile number to Sign in and click ‘GET OTP’.
Step 3: Enter the OTP sent to your mobile number. On successful verification, you will be redirected to our online application form.
Step 4: Enter basic details like: Full name, Email ID, mobile number and city of residence.
Step 5: Under ‘Type of Security’ select ‘Bonds’.
Step 6: Enter the total portfolio value of your bonds and click on ‘Submit’.

Once you have shown your interest in availing of the loan and submitted your details, our representative will get in touch with your further proceedings. The final loan amount shall be calculated basis the effective pledge marked on the bonds and the price of the bonds.
Disbursement shall be done post successfully verification, and pledging.

Frequently asked questions 

What are the features of loan against bonds?

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).

What securities can be pledged for a loan against bonds?

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.

What are the benefits of a loan against bonds?

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.

Disclaimer:

Investments in the securities market are subject to market risk, read all related documents carefully before investing.

Reg Office: Bajaj Auto Limited Complex, Mumbai –Pune Road Akurdi Pune 411035. Corp. Office: Bajaj Financial Securities Ltd., 1st Floor, Mantri IT Park, Tower B, Unit No 9, Viman Nagar, Pune, Maharashtra 411014. SEBI Registration No.: INZ000218931 | BSE Cash/F&O (Member ID: 6706) | NSE Cash/F&O (Member ID: 90177) | DP registration No: IN-DP-418-2019 | CDSL DP No.: 12088600 | NSDL DP No. IN304300 | AMFI Registration No.: ARN – 163403. Website: https://www.bajajfinservsecurities.in/