• Features:

Many investors build portfolios of bonds, deposits, equity shares and mutual funds. When faced with an unexpected requirement, they feel unsure about whether to raise funds or liquidate investments.Under “Loan against Securities”, loan is advanced to a customer against pledge of securities or simply put loan against insurance policy, mutual funds, NSC and other securities. The list of approved securities against which LAS can be advanced varies from bank to bank, but primarilyNon-Convertible Debentures, Mutual Fund Units, NABARD Bonds, Demat Shares, UTI Bonds, NSC/KVP (Accepted only in Demat form) and non Unit linked Insurance Policies. LAS helps you to get loan against the securities that you have, for the time being, merely pledged without selling them off in haste. An overdraft facility is advanced to you by bank or financial institution when you pledge your securities. The value of the overdraft limit that is advanced to you is determined on the basis of the securities that are pledged by you.

  • Eligibility: Anyone who falls within 18years – 65years of age can apply for availing loan against securities.
  • Interest Rates:Generally, interest rates at which loan against securities is advanced varies from 12% – 15% p.a but that may also vary from bank to bank.
  • Documents Required:
Salaried:

1.       Pan Card

2.       Identity Proof

3.       Photograph

4.       Address Proof

5.       Bank Statements (Latest 6 Months)

6.       Cancelled Cheque

7.       Demat Account Statement (Securities need to be in electronic form)

8.       Income Proof

Self Employed

1.       Pan Card

2.       Identity Proof

3.       Photograph

4.       Address Proof

5.       Bank Statements (Latest 6 Months)

6.       Cancelled Cheque

7.       Demat Account Statement (Securities need to be in electronic form)

8.       Income Proof along with Profit and Loss Account, Balance Sheet etc.

9.       Office Address Proof

10.    Business Existence Proof

 

  • Repayment options:You can repay your loan as per contracted tenure. But At any point of time if you wish to prepay your loan against securities then you can do so without giving it a second thought as there are no prepayment charges attached to this loan.
  • Tenure:The tenure of loan against securities is generally one year. You may also get it renewed as per your requirement.
  • Fees & Charges: Processing Fees/ Stamp Duty/ TRF processing charges/ Pledge creation fees/ Legal Fees/ Administrative Fees/Demat Charges

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