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March 2020
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If you have invested your money in bonds, securities, mutual funds, equity shares, etc, you will surely get a profit from it once you sell the shares. But, when you have invested in shares, you can use those shares to get a loan on behalf of that. You can use your shares as assets and apply for a loan against securities from a bank or non-banking financial corporation (NBFC). There are certain factors that you need to know about a loan against securities: Collateral deposited- You can keep your securities as asset or collateral with the bank or NBFC or any other financial institutions and take a loan. But, you are eligible to get only a portion of loan as per the value of your asset. If you have equity shares, you can get up to 50% and for bank deposits, up to 90%.
Procedure- A current account with the facility of an overdraft is initiated. Now, the investors can withdraw any amount from their accounts as per convenience and repay it by depositing the money into their current account. This is a much flexible process as compared to an EMI operated loan. Rate of interest- As it is a secured loan, so the rate of interest is lower than a credit card or a personal loan. The rate of interest for such loans is charged monthly, on the basis of daily outstanding balance in the overdraft’s account. Read more :- Easy Way to Avail a Loan Against Securities at Lower Interest Rates
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A loan against shares has emerged as one of the finest credit solutions for people who aren’t willing to opt for any other alternative solution with higher interest rate and a relatively lower borrowing limit. Apart from that, if you are taking a loan against share, below are some benefits you can leverage from.
The final words, don’t forget to compare and dig out the best proposals before applying for it. Read More :- Avail Loan Against Shares to Fulfill Your All Needs |