What is a loan against an asset
2 min read
A loan against asset is a secured loan where a borrower pledges an asset as collateral. With this type of loan, the borrower can access a high loan amount at affordable interest rates. A borrower can avail of up to 80% of the asset value.
Common types of loans against assets include the following:
- Loan against commercial and residential property
- Loan against cars
- Loan against investments such as fixed deposits
- Loan against securities like mutual funds, shares, bonds, insurance policies, ESOPs
- Loan against valuables such as gold
- Loan against future payments such as the rent of commercial properties
- Loan against land
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