In times of a financial crunch, people usually end up taking personal loans from banks or end up liquidating their assets like shares, mutual funds and bonds. Few are aware that salaried and self-employed individuals in the age of 25-65 can instead take a Loan Against Securities (LAS), which is hassle free and cheaper than personal loans.
Don’t sell your securities yet
Selling off your securities is never a good idea as you will lose the capital gains and dividends the market is earning for you. Want to go for a personal loan? Not a good idea again. Personal loans come costly at a high interest-rate, which could range from anything between 12% and 25%, plus a processing fee that could range from 1% to 3%. LAS in comparison has a much lower interest rate and processing fee.
Get LAS up to Rs 10 crore
The loan amount depends on the value of the securities and could range anywhere between 50% to 90%, depending on the nature of scrips and your past credit history. Take the case of Bajaj Finserv, which offers LAS with the highest loan amount of up to Rs 10 crore, at a minimal interest rate and a processing fee as low as 0.10%. You can apply online to get your loan approved within 5 minutes and receive the money in your bank within 72 hours.
However, it is important to note that all financial institutions have their own list of approved securities against which they can lend and this list is updated periodically. The securities can range from equity shares, mutual funds, government relief bonds, gold deposit certificates, life insurance policies, National Saving Certificates, Kisan Vikas Patra and UTI Bonds. Not all shares are eligible to be pledged against the loan. The shares must be highly liquid, and from reputed companies.
Avail the Flexi Loan option
Loan against securities are perfect for short-term financial needs such as working capital needs, medical emergencies and other unexpected expenses. Unlike a personal loan, which could incur a prepayment penalty of 2% - 5%, Bajaj Finserv LAS comes without any prepayment and foreclosure charges, and needs no guarantor. Besides, you can also opt for a Flexi Loan option that can be repaid by paying only interest as EMI and repaying the principal at the end of the tenor.
Moreover, since LAS is an overdraft facility, it comes with an additional benefit of interest being charged against only on the utilization of the money sanctioned and only for the number of days the money is used.
Get a dedicated personal relationship manager
Bajaj Finserv allows you to track your LAS online through a secured customer portal. It also provides you with a dedicated personal relationship manager, who can be reached out 24X7, and will be happy to address your loan-related queries.
Hassle free application
If you are an Indian resident and at least 25 years of age with a regular income, you can apply online for LAS easily with minimal documentation. Bajaj Finserv does not require any financial documents making the loan process hassle-free.
To know more about Loan against Securities from Bajaj Finserv, click here.
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