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What Should you Know about Loan Against Shares?

Shares are market-linked securities that come with the promise of high returns. Added to this is the flexibility factor, which allows you to buy and sell the shares of your choice whenever you spot a favourable market change.

However, if you are selling your shares to meet an immediate cash need, take a moment to evaluate your decision. Instead of selling your stocks, you can avail another, equally beneficial option. Use your holdings as collateral and get a loan against shares instead.

All financial institutions that offer this loan have a list of approved shares against which you can take a loan. Broadly, the list includes retail, HNI, and specified promoter share categories. Most lenders also allow you to pledge your own company’s shares to avail a loan.

If you’re wondering whether this is the right loan option for you, read on to find out everything that you need to know about this source of finance.

Avail a High Amount of Funds

You can get a loan of around 50% of the total worth of your shares. This percentage varies from one lender to another, so check a few options and then select the best one. If a high loan amount is what you are after, consider taking a Loan Against Shares from Bajaj Finserv. This loan gives you a corpus ranging from Rs.15 lakh to Rs.10 crore in addition to benefits like approval in 5 minutes and disbursal in 72 hours.

Gain from Maximum Flexibility

You can repay this loan comfortably by availing a tenor of up to 12 months and enjoy prepayment and foreclosure at no extra charge. Besides, when you take this loan from Bajaj Finserv, you can also avail it as a Flexi Loan.

You can withdraw funds from the total sanction as and when you need to, and pay interest only on the amount you use. Then, you can repay flexibly too, by paying interest-only EMIs first, and repaying the principal at the end of the tenor.

Enjoy Simple Eligibility and Minimal Documentation

The eligibility criteria for a loan against shares set by lenders is minimal. Firstly, your securities must be at least worth Rs.25 lakh. Besides this, you only have to fulfil a few basic conditions:

  • You have to be a resident citizen of India
  • You should be at least 25 years of age
  • You must draw a regular income as a salaried or self-employed professional.

Once you meet the eligibility criteria, simply submit your KYC documents, demat statement, bank statement, Form 16 and income proof including payslips.

Apply Online or Offline

As it is a secured loan, the application process for this loan is easy and you can apply online at your convenience, to save time. Just visit the lender’s website and fill the form. The lender will then give you a call to confirm your application and you can hand over the documents to a representative.

Once verification is complete, the amount will be disbursed to your account. Alternatively, you can also submit an application offline, at the lender’s branch or by sending an SMS or giving a missed call.

Benefit from Additional Features

Besides this, your loan against shares comes with additional features. You can access your loan online through a customer portal. This allows you to track your loan as per your convenience, in a secure manner, without visiting the branch or contacting your lender.

When you take this loan from Bajaj Finserv, you can also get access to a relationship manager whom you can contact 24×7 to seek answers for all your loan-related queries. Besides this, you also get access to Bajaj Finserv EMI Card which comes with a pre-approved loan amount that you can use to shop for high-value items, including appliances, both online and offline.

With a host of features and unique benefits on offer, a loan against shares can serve as an excellent resource for when you need instant access to credit.

 

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