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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