Know about loan against bonds

2 min read

A bond is a fixed income instrument in which an investor gives a borrower a loan. Many banks and NBFCs offer loans against bonds, provided these bonds are of a recognised entity. With Bajaj Finance, you can get funds of up to 95% of the value of your bonds. 

Frequently asked questions

What are the advantages of a loan against bonds?

Loan against bonds offers several advantages. Firstly, it provides access to funds without selling your bonds, allowing you to retain potential future gains and income. Additionally, interest rates on such loans are often lower than unsecured loans. They are also relatively quick to obtain, as the collateral is already established.

How can I apply for a loan against bonds?

You can apply for loan against bonds by clicking on the ‘Apply’ button on this page. Fill in your personal details, and the value of your bonds. Accordingly verify your details through an OTP.

What should I consider before seeking a loan against bonds?

Before seeking a loan against bonds, consider a few crucial factors. First, assess the terms and interest rates of the loan. Make sure the cost of the loan doesn't outweigh the benefits. Next, understand the potential risks, as if your investments decline significantly, you may need to provide additional collateral or repay the loan. It's also important to review the terms of the loan agreement, including any restrictions or penalties. Finally, evaluate your financial situation to ensure you can comfortably manage the loan payments and any potential market fluctuations that could affect the bond's value.