A Loan Against Securities (LAS) allows you to leverage your investments in various financial instruments such as shares, mutual funds, bonds, and other securities to obtain a loan without needing to sell them. This type of loan helps you meet urgent financial needs while keeping your investment portfolio intact.
Features
- Flexible Loan Amounts: Loans ranging from Rs. 50,000 to several crores, depending on the value of the securities pledged.
- Overdraft Facility: Access to an overdraft facility where you pay interest only on the amount utilized.
- Interest Rates: Competitive interest rates, with the exact rate varying based on the bank and type of securities pledged.
- No Prepayment Charges: Generally, no penalties for prepayment of the loan.
- Loan Tenure: Typically reviewed and renewed annually.
- Quick Processing: Digital processing options for faster approval and disbursement.
- Margin Requirements: Generally, banks require a margin of 50%-70% of the value of the securities.
Why Us
- Competitive Interest Rates: Enjoy some of the most attractive interest rates in the market.
- Wide Range of Securities: Loans can be availed against a diverse portfolio, including equity shares, mutual funds, bonds, and more.
- Flexible Repayment Options: Convenient repayment plans tailored to your financial situation.
- Fast Approval: Quick loan processing and disbursal, ensuring timely access to funds.
- Expert Financial Advice: Access to professional advice to optimize your loan and investment strategy.
FAQs
What is a Loan Against Securities?
A Loan Against Securities allows you to borrow funds by pledging your financial assets like shares, mutual funds, and bonds as collateral without selling them.
What are the eligibility criteria?
- For Individuals: Resident Indians above the age of 18, with a satisfactory past relationship with the bank and a DEMAT account.
- For NRIs: Eligibility varies; NRIs need to check specific bank requirements.
What types of securities are accepted?
- Equity shares
- Equity mutual funds
- Debt mutual funds
- Bonds and debentures
- Life insurance policies (surrender value)
What is the minimum and maximum loan amount?
The minimum loan amount is typically Rs. 50,000, and the maximum can go up to several crores depending on the value of the securities pledged.
How is the loan amount determined?
The loan amount is based on a percentage of the market value of the pledged securities, usually between 50% and 85%.
Are there any prepayment charges?
Generally, there are no prepayment charges for loans against securities.
What documents are required?
- KYC documents
- DEMAT account statement
- Pledge form for securities
- Any additional documents as required by the bank
How do I apply for a Loan Against Securities?
You can apply through the bank’s online portal or visit a branch. Ensure you have all required documents and your DEMAT account details ready.
By offering a Loan Against Securities, Capikone aims to provide a flexible and efficient financial solution to meet your urgent needs without disrupting your long-term investment goals.