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What You Need to Know Before Taking Out a Loan against Securities

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When you have an urgent need for money, you may see even relatives and friends not helping you sometimes.

Why feel bad and stay low when you can still avail a higher amount of money at a lower interest rate with the loan against securities?

Yes, if you have invested some money in an investment scheme such as mutual funds, shares, or insurances, you can get a higher amount of money quickly. The LAS interest rate is lower, and you can manage to pay lower EMIs.

However, before you apply for a loan against securities, you may have some questions around it. If you want to know some aspects about the loan against security before applying it, then this post will help you know some FAQs about it.

Key FAQs on loan against securities at a glance

What is a loan against securities?

The loan against securities is a facility which lets you avail an amount of money in the form of a loan when you pledge one of the investments. You can use the borrowed amount to meet many needs of your life as per your wish.

What are the features of the LAS?

When you invest in the loan against securities with a leading bank or lender, you can enjoy many features such as:

  1. A loan amount that may run even into crores and the final amount as the loan will be released to you as per the security type that you have and its worth.
  2. Wider loan tenor of up to 12 months so that you can repay a lower EMI as per your income level and monthly budget.
    You can pay the LAS interest rate only on a monthly basis on the utilized loan amount.
  3. You have the privilege of swapping your pledged securities as well.
  4. Leading banks/lenders assign dedicated Relationship Manager to help resolve all your queries 24/7 related to the loan against securities account.
  5. Online account management to assist you to grab all details of the LAS account via the digital customer portals.

What are the different types of loan against securities?

There are many types of loans that are clubbed under the loan against securities such as:

  • Loan against shares
  • Loan against bonds
  • Loan against mutual funds
  • Loan against insurance policies
  • Loan against IPO financing
  • Loan against FMPs
  • Loan against ESOPs

Can you make some prepayment or foreclose the LAS account earlier?

Applying for a LAS account with a leading lender can help you make some prepayment or even foreclose the loan account before its tenor. You need not pay any charges/fees for doing that at all.

How do you apply for the loan against securities account?

You can apply for a loan against securities facility online and save your time and efforts.

The Bottom Line

The loan against securities is one of the most convenient types of loans to enjoy at a lower LAS interest rate so that you can cover many of your needs. If you are ready, you can start applying for a loan against securities online and get going! All the best!

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