Loan Against Securities

1
Loan Against Securities

• Never think about selling your shares or mutual
  funds to meet a financial emergency!  
• A Loan against securities is a credit facility
  offered by various banks and financial
  institutions that allow you to instantly raise
  money against your shares without selling them.
• Loan Against Securities _at_ 10 Onwards
• Loan upto 80 of pledged securities Pay
  interest for used amount only No pre-payment
  charges

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Benefits of Loan Against Securities

• Instant disbursal facility through online
  application
• Pay interest only on the amount you use
• Low-interest rate and processing charges
• Set your own loan limits (minimum Rs 1 lakh and
  maximum Rs 20 lakh)
• Choose the shares and mutual funds you want to
  pledge, and enjoy the flexibility to change them
  in the future
• No prepayment penalty
• High loan to collateral value

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What are loan against securities (LAS)?

• A Loan Against Securities is a kind of a credit
  facility where you will be required to pledge
  your shares, mutual funds or life insurance
  policies as collateral to the bank against your
  loan amount.  
• How does loans against securities work?
• typically, a overdraft loan against securities
  are provided as an overdraft facility in your
  account after you have deposited your securities.
  This allows you to withdraw money from your
  account and pay interest component only on the
  loan amount that used by you and for the period
  you use it.

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• Instance, if you avail a loan against shares of
  Rs. 5 lakhs. Let's say, you withdraw 1 lakh and
  deposit the same withdrawn amount to your in the
  next month. In such a case, you are liable to pay
  only interest for one month on Rs. 5 lakhs.  
• However, the loan eligibility will depend on the
  value of the securities you offer as collateral/
  security.