Many people scramble to raise funds for emergency needs as uncertain times mount. Even if you do not have emergencies to contend with, you may still wish to take a planned loan for any future requirement, like your child’s higher studies abroad.
If you have a substantial corpus of investments, especially in stocks, you can avail of a loan against shares. Leveraging your investments in this way may serve your financial needs well.
How Does Loan against Securities Work?
The fact that you can use this facility at any time after opening a Demat account is not well-known to many people. As with any other loan, you can apply for amounts equal to the value of your held securities.
During the loan term, the borrower continues to benefit from any share profits, dividends, bonuses, etc.
If you have invested in stocks for the long run, it’s a good idea to take a loan against your equity investment.
With such loans, investors can meet shortfall fund requirements and still have enough wealth to fulfill long-term financial goals.
Consider a Loan Against Shares
If you are considering investing, you may want to consider shares as a potential source of long-term profits. A potential good IPO may also be of interest to you, as you would own shares in a company that may grow in the future, thereby generating profits for you. As a result, your capital growth and funding opportunities increase.
You should consider a loan against securities for the following five reasons.
1. A convenient way to borrow high-value items:
A loan against securities of up to Rs. 10 crores can be obtained against shares, mutual funds, FMPs, ESOPs, IPOs, and bonds. In addition to being versatile, the loan offers easy qualification and restriction-free use of funds. You can apply for the loan online with Rurash Financials in just a few minutes.
2. Finance for your urgent needs in a timely manner:
It is not uncommon for urgent monetary requirements to arise unannounced. An emergency hospitalization, for instance, requires immediate attention and funds. It can be difficult to arrange sufficient funds during an emergency. You might think that liquidating your savings and investments would be a convenient solution in such a situation. With a loan against securities, you can get instant funds without selling your securities and receive the funds within 48 hours of application. Both personal and professional fund deadlines can be met by this speedy application process and disbursement.
3. Maximize your investment return:
With a diverse mix of varied securities, you have built your investment portfolio to achieve both short-term and long-term gains. Over time, these instruments can grow and generate high returns if they are left untouched.
You may lose out on future profits if you liquidate them before they mature or when unfavorable market conditions prevail. Your best option here is to take out a loan against securities. Pledged investments can be used to raise capital while equity holdings continue earning profits and dividends.
Rurash financials, on the other hand, provides instant financing, which can help you save time and simplify the funding process.
4. Borrow against 800+ approved securities:
No, Your investment portfolio may still be diverse, but you may only want to put up certain securities as collateral. FDs, for instance, contribute monthly returns that you need to cover household expenses, so you wouldn’t want to pledge them as collateral.
You can pledge your shares instead of your bonds. Providing your security has a value of at least Rs. 10 lakh, you can pledge any security from our 800+ approved securities list as collateral.
5. Flexible repayment terms:
Secure a loan against your high-value securities and equity holdings on easy repayment terms by pledging them. Lenders allow you to foreclose or make part-prepayments on loans without incurring additional charges. Moreover, you can choose a tenor from a maximum of 36 months at your convenience
If you need cash urgently, loans against securities are available without liquidating your investments. The borrower earns dividends and profits on the investments despite being pledged. In contrast to traditional bank loans, these loans provide flexibility in repayment and have no EMIs, so it is not advisable to sell assets at a loss or quickly.
Instead, raising funds through Loan against securities and shares would be better. Depending on your investment portfolio and needs, Rurash Financials is able to provide you with customized solutions for loans against securities. When you take out a loan from Rurash and pledge your securities, you will get the most competitive interest rate. Due to its hassle-free and secure online application process, the LAS route is also convenient and easy to use.
As a leading investment management company in India, RURASH provides financial solutions that enhance clients’ wealth and help them build a legacy. For any guidance regarding financial instruments, Connect with the relationship manager now or write to: firstname.lastname@example.org.