A loan against stocks is a loan obtained by pledging the stocks as collateral to access quick finance. With Bajaj Finance, you can pledge your stocks as collateral and avail funds up to Rs. 5 crore at affordable interest rates. You can affordably meet all your financial needs by seeking a loan against stocks.
A stock is a generic term that refers to the ownership certificates of any company. Stocks are usually categorised into two types—common and preferred. With the common stocks, the stockholder has voting rights on the corporate decision. With preferred stocks, the stockholder is entitled to earn a certain level of dividend payments before any dividends are issued to other stockholders.
Frequently asked questions
Bajaj Finance offers interest rate of up to 20% per annum for loan against shares. The final interest rate will depend on the types of shares and value of shares being pledged.
Apart from that there are other fees applicable. Common fees include processing fees, part-prepayment fee, foreclosure charges and many more. These fees are typically charged upfront or deducted from the loan amount and can add to the total cost of the loan.
The repayment period of a loan against shares with Bajaj Finance is up to 36 months.
A "loan against shares" and "loan against securities" are terms that are often used interchangeably, but there's a subtle difference. A "loan against shares" typically refers to borrowing money with a specific stock portfolio as collateral. On the other hand, "loan against securities" is a broader term encompassing a wider range of financial instruments, including bonds, mutual funds, and other securities. So, while both involve using securities as collateral for a loan, the former is more specific to shares or stocks, while the latter can involve various types of securities.