Abhiloans

What is Loan Against Securities?

A Loan Against Securities (LAS) is a flexible, secured credit facility that lets you unlock the value of your investments without liquidating them. By pledging securities like shares, mutual funds, and bonds as collateral, you can access quick liquidity whenever you need it. The biggest advantage is that your portfolio continues to work for you meaning you still benefit from dividends and capital appreciation while the assets are pledged. Typically, the approved loan amount is up to 50% of the market value of the pledged securities, making LAS an efficient way to meet urgent financial needs or

Can a customer pledge all the securities of his portfolio?

Yes, you can pledge all the securities in your portfolio whether mutual funds, equity shares, or bonds when applying for a loan against securities. This option allows you to access funds instantly while keeping your investments intact. Pledging your securities is an effective way to raise capital without selling your assets. It helps you maintain your portfolio’s growth potential while meeting your financial or business needs. Even if you pledge your entire portfolio, the loan amount will depend on the market value of your securities. Typically, lenders offer between 50% and 60% of the portfol

If a customer is holding securities in his company’s name, can he avail of a loan against them?

Yes, companies can avail a loan against securities held in their name, provided they meet the lender’s eligibility and documentation requirements. It’s an effective way to leverage investments such as mutual funds, shares, or bonds to manage short-term financing or business cash flow needs without liquidating assets. When you take a loan against securities, ownership of the investments remains with you. The securities are only pledged as collateral, allowing you to continue earning dividends and returns while using the loan amount for business or personal purposes. You also pay interest only o

Can I make part payments on my loan against securities?

Yes, you can make part payments on your loan against securities without incurring any prepayment charges but this facility is available only under the Overdraft (OD) product. The OD product from Abhiloans comes with a flexible part-prepayment option, allowing you to repay any amount at any time during the loan tenure. This flexibility makes it easier to manage your cash flow and reduce your interest burden. With Abhiloans, borrowing against securities becomes even more convenient, helping you unlock the value of your investments to meet short-term financial needs without selling them.

When I pre-close my loan against securities, what are the pre-closure charges?

You can pre-close your loan against securities anytime by repaying the outstanding principal and applicable interest. While pre-closing your loan can help reduce your overall interest cost, some lenders may levy pre-closure or prepayment charges, which vary depending on their policies. It’s always advisable to confirm the prepayment terms before applying for a loan against shares, mutual funds, or other securities. At Abhiloans, you can enjoy complete flexibility there are no pre-closure or prepayment charges on your instant loan against securities. This means you can repay your loan whenever

What is the purpose of a loan against securities?

A loan against Securities is a financial service that allows you to borrow money against the security of your stock market investments, such as equity shares, bonds, mutual funds, etc. It is a convenient and secure way to access funds in times of financial need. It is a quick online, which helps you access easy short-term financing with minimal paperwork and low-interest rates. The money obtained from instant loan against securities can be used towards serving any of the following purposes: Pay off your existing debt Invest in some profitable ventures (a new or existing business) Renovate your

What are the features of loan against securities?

A loan against securities, which is synonymous with an instant loan against securities or a digital loan against securities, is an attractive option for investors looking to monetize their investments. It is a type of secured loan that offers borrowers several features, making it a feasible borrowing option. Some of the known features of an instant loan against securities are as follows: Competitive interest rates: since it is a secured loan, the interest rate is comparatively low. No hefty documentation is needed: it requires minimal paperwork and no credit history check, though with selected

What are the various types of Loans against securities?

If you have in mind a loan against securities online, understanding their different types will help you make a prudent decision. You may take these loans against multiple approved securities such as stocks, bonds, mutual funds, and other financial instruments. They offer an attractive interest rate and allow you to use the loan proceeds for any purpose. The various types of loan against securities include: loan against mutual funds loan against shares loan against bonds loan against insurance policies For each loan, you need to pledge the securities associated with its type. For example, if yo