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What is the use of investments, if they are unable to help you tide over financial bad phases? There is a perfect way to use your securities for getting ready money whenever you need. Loans against shares keeps your shares as collateral for extending amounts you require to fulfill your immediate requirements. The best thing about this arrangement is that borrowers have to pay interests only on sum they use and for the period of use. There is an exhaustive list of securities against, which banks are ready to extend loans. This includes mutual funds and a variety of shares. Contact your bank regarding the process and the rules or regulations governing such transactions. Now you are ready to roll on the power of investments! General information The interest rates of loan against securities are in the range of 15-18.5%, which is high under any circumstance. Those who want to go for this loan can pledge the securities of their children, spouse, siblings, grandparents, and parents, besides their own. Loan amounts depend on security valuation, borrower’s ability to repayment and service, along with applicable margin. Those who want to apply for this kind of credit facility should know about the various fees involved. This includes documentation charges, which are bank specific and processing fee. Features and advantages Loan against security provides instant liquidity without compelling you to sell your shares. With this kind of arrangement, it is possible to take care of your immediate personal needs without letting go of your investment portfolio. This is an ideal arrangement for those who are looking for a short-term funding source, which provides hassle free options the easy way. Repayment is also possible depending upon your present liquidity at intervals so as not to put any extra financial burden. Nowadays with online banking becoming the norm following your loan and getting relevant information on it is possible sitting at home or from any location. Find varied information including interest certificate, repayment track, and payment schedule by logging onto your user account on electronic customer portal. In order to make the loan process easy along with troubleshooting issues that come up related to the credit, banks today assign dedicated relationship managers. These people answer queries and process requests. From going through your loan application to sanction or disbursements, this is a customer friendly process all through the way. Conditions for loan You can get loan against only those shares that belong to eligible companies or open ended, reputed mutual funds. At a single time, it is possible pledge approximately 20 shares. However, this number varies from bank to bank. Credits on mutual fund depend on their respective NAV values. Every financial institution has their very own approved list of shares against which they are ready to extend loan amounts. Therefore, it is necessary to consult this list to determine whether your securities are eligible. Investment banking is all about unleashing the power of your investments for making good your present commitments. Why not use your existing assets to create newer ones with loan against securities!
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