Ways to Borrow Loan Against Shares From Banks or NBFC - Farah Atelier


Tuesday, December 18, 2018

Ways to Borrow Loan Against Shares From Banks or NBFC

Offering loans against multiple assets such as gold, mutual funds, properties and much more is one of the common things that banks do. In the recent past, even non-banking finance companies, known as the NBFCs have also started to offer loans. 

One of the loans offered by both banks and non-banking finance companies (NBFCs) is none other than the loan against shares facility (LAS). 

Let this post provide you with some insights on loan against shares and how you can borrow the money from an NBFC and bank. 

What is a loan against shares? 

A loan against shares is one of the less advertized loans that both banks and NBFCs offer to customers. As the name suggests, you need to pledge or keep your shares’ value as collateral or security to procure some amount as per your needs. 

Nowadays, the number of banks and NBFCs providing loan against shares facility is on the rise. The maximum loan that you can seize from leading online NBFCs is Rs.10 crore. The minimum worth of your portfolio (shares) should be at least Rs.10 lakh to become eligible to apply for loan against shares.

Nonetheless, availing the loan against shares is not open to all types of shares. Lenders define the company’s shares that can be pledged against the loan. 

How can you borrow money with a bank LAS account?

When you apply for a loan against shares account with a bank, it usually opens a current account. You also get an ATM Card, internet banking along with a chequebook. 

As and when a need arises, you can withdraw some money from this account. 

The biggest advantage of applying for it that you will only be charged interest on the withdrawn amount and only for the time span the fund is utilized. The other significant benefit of the LAS account is that you don’t need any guarantor.
How do you borrow money with an NBFC LAS account?

The non-banking finance company (NBFC) appoints a dedicated Relationship Manager to help you with all loan activities.
The Relationship Manager is available 24/7 to help you resolve all LAS queries and issues related to withdrawal of funds. 

What are the eligibility terms for LAS?

When you wish to apply for loan against shares account, you also need to prove your eligibility as per the below conditions such as: 

You should be an Indian citizen 

Your age must be at least 21 years on the day of applying for the LAS 

You should have a consistent flow of income and you should either be a salaried individual or self-employed

The minimum worth of your portfolio needs to be Rs.10 lakh 

The maximum loan amount that you can apply for is Rs.10 crore 

Do you need some urgent access to a higher loan value? Don’t you want to liquidate your assets and continue to earn ROIs? Then you should immediately apply for loan against shares.

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