{"id":2502,"date":"2018-09-08T09:00:20","date_gmt":"2018-09-08T03:30:20","guid":{"rendered":"http:\/\/capitalante.com\/?p=2502"},"modified":"2019-02-26T19:02:28","modified_gmt":"2019-02-26T13:32:28","slug":"loan-against-securities-in-easy-steps","status":"publish","type":"post","link":"https:\/\/capitalante.com\/loan-against-securities-in-easy-steps\/","title":{"rendered":"Loan Against Securities In Easy Steps"},"content":{"rendered":"

In modern<\/g> world<\/g> most of the people are much wise in respect of financial literacy and they start building portfolios of bonds, deposits, equity shares and<\/g> mutual funds. But there sometimes happens to be an unexpected money requirement in lieu of health hazard or any unexpected casualty. At that time it becomes a complicated jargon whether to raise funds via personal loan or by selling the securities i.e. Stocks, Mutual Funds etc. One question arises in the mind of the retail investor whether he will succeed in rebuilding the portfolio of Stocks or Mutual Funds, Bonds etc. if he sells his folios now. Loan against securities is a facility offered by several banks\u00a0and non-banking finance companies. It is a good alternative instead of taking Personal loan in respect of loan amount you desire and the interest rate.<\/span><\/p>\n

Eligibility<\/strong><\/span><\/h6>\n

The facility is available for resident Indians only, NRIs are not allowed. Investment in stocks and mutual funds are made through banks, so your bank will give you the loan on the basis of your investment value by date.<\/span><\/p>\n

Loan amount<\/strong><\/span><\/h6>\n

Loan amount varies from minimum Rs. 50,000\/- to maximum Rs. 20 lakh. Loan<\/g> is sanctioned on the basis of the value of securities in demat<\/g><\/g> account or Mutual Fund. Suppose your investment is Rs. 8 lakh and with the earned return the current valuation of total investment is Rs. 12 Lakh, then you can get maximum<\/g> loan of 50% of Rs. 12 lakh i.e. Rs. 6 Lakh.<\/span><\/p>\n

Similarly, if you have invested Rs. 5 lakh in mutual fund and its\u2019 current valuation is Rs. 8 Lakh then you are eligible to get a loan maximum 50% of Rs. 8 Lakh i.e. Rs. 4 Lakh.<\/span><\/p>\n

Purpose<\/strong><\/span><\/p>\n

This facility is available to\u00a0meet contingencies and needs of personal nature. For any sudden situation like health hazard<\/g> this loan is available. It will take 3 business days after applying for loan<\/g> against securities.<\/span><\/p>\n

Security<\/strong><\/span><\/h6>\n

You need to pledge of the securities i.e., Stocks or Mutual fund against which loan will be sanctioned.<\/span><\/p>\n