Loans Against Securities

Use the potential within your investments and assets to avail a loan against securities. Rather than a direct loan, a loan against security is set up as an overdraft facility based on the value of your chosen securities. An account is set up specially in your name, and you can then access the funds. Securities that can be pledged vary according to the lender, but usually demat shares, exchange traded funds, insurance policies, savings bonds, mutual funds and many other types of securities may be used. Use the chart below to compare the main features of each loan. How much is the interest rate, and what is the payment structure? How much are you able to borrow and are there any additional fees? Taking a loan against securities does not mean you are selling those assets, but you do run the risk of losing them if you are unable to repay the loan. Make sure you check the full terms of each loan before you make your application.

If you wish to speak to someone: Contact Us

Compare Loans Against Securities

A loan against securities can help you to release capital when you need it.

What is a Loan against Securities?

A loan against security is a loan which allows you to use your financial assets to avail money. In other words, you can use one of many financial assets to guarantee the loan. Securities you can use to avail the loan include: Mutual fund units, Life insurance policies, Shares (equity shares, demat shares), Exchange Traded Funds (ETFs), Bonds and other financial assets. By while not being required to sell them. You are merely using them as a security to guarantee your loan.

Who’s Securities Can I Pledge?

You can use your own securities, those of your family members and in some cases you can use securities belonging to third party members, but this depends on the bank or lender. If you use securities that belong to third party people you may have to provide full proof that you have permission to use them.

For What Purpose is a Loan against Security?

You can use this type of loan for any purposes, whether they are personal or business.

What are the Loan Amounts?

The amount you can borrow depends on the value of your assets and on the terms of the bank or lender from whom you are borrowing. In some cases, you can borrow only around 50% of the value whereas in other cases the percentage will be much higher.

Are there Fees?

As with most loans in India, there are likely to be additional fees on the loan. These might include processing fees, administration fees and application fees. Find out any fees and charges before you apply for the loan.

How Do I Receive the Loan?

Most loans against securities are given in the form of an overdraft. The bank or lender will set up an account in your name on which an overdraft limit based on the value of the loan. Of course, you will be charged interest rates but these can be very reasonable on this type of loan.

Remember to bear in mind that if you are unable to keep up with your loan repayments, you may risk losing your pledged assets, as they may be seized by the bank as payment of your outstanding debts.

Are there any risks associated with loans against securities?

When applying for a loan against securities you should ensure that you are fully aware of the risks involved. Before you apply, ensure you calculate how much you can afford to repay each month, rather than how much you would ideally choose to borrow. If you are not able to make the repayments in full each month you run the risk of losing your asset and potentially getting into debt. If you are in any doubt then you should seek independent financial advice and ensure that you research your options thoroughly. Read the terms and conditions of the loan so you are sure this is a suitable loan for you.

Loans Against Securities - Latest News News and Charts

When the planning starts for that special day in everyone's lives , There is always the worry and stress of how much strain it is going to put on your financial situation . Marriage loans are helping lots of people to ease this stress.

08 August 2015
Which Way To Pay

Marriage loans have been introduced to help prepare for the expense you will incur when celebration the most special day of everyone's life.

READ ARTICLE

As everyone wants that big day to be perfect , there is also a hefty cost that comes with it .

14 May 2015
Which Way To Pay

Marriage isn't a cheap affair that's why Marriage loans have proven so popular across India.

READ ARTICLE

Everyone want the best education , But financially this can be a worry

07 October 2014
Which Way To Pay

Getting the best education is the main priority in most people's lifetime.

READ ARTICLE

Is it important to compare personal loans before you apply for one?

03 April 2014
Which Way To Pay

With the increasing demand for personal loans over the last few years, there have never been so many providers in the market. But how do you know which company to choose?

READ ARTICLE

Has Christmas left you with a financial hangover? Will a personal loan help you get through to the end of the month?

21 January 2014
Which Way To Pay

Christmas is over and all you are left with is a large waist line, flu and massive debt. Read our personal loans guide for some tips on how to cope with Christmas debt.

READ ARTICLE