Which Brokers Are Providing Loan Against Security, And What Are The Rates?

By Author: Rohit ojha
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What is a loan against security?

Loan Against Security is a kind of overdraft facility that enables you to meet your financial objectives without losing the ownership or advantages of the securities. These loans are available at a lower interest rate as compared to personal loans due to being the secured type of loans. You can borrow a high amount against your financial assets, depending on your choice of lending institutions. An investor can easily qualify for these loans. You are not restricted to the end-use of funds raised against these loans.

loan against the securities option, and what are the rates

You can find numerous brokers who offer loans against securities. Most banks and NBFCs with asset sizes of 100 crores and above also provide these loans. The interest rate charged on loans against securities can be between 7..5% to 12% with most lenders. Common securities that can be utilised to get a loan are equity shares, Gold Deposit Certificates (GDC), UTI and government bonds, mutual funds, Life Insurance Policies, National Savings Certificates (NSC), Kisan Vikas Patra (KVP), tax-free bonds. Every ...
... financial institution has a different interest rate to provide loans against securities and a different list of approved securities to approve loans against securities applications.

Only a few institutions provide you with loans against securities at a low-interest rate. As an authorised Loan Against Securities facilitator, RURASH Financials provides you with multiple lender options, charging as low as an interest rate of 7.5 %. You can pay interest only on the loan amount utilised instead of the approved amount as this is an overdraft facility. You can choose the securities to pledge from a list of 800+ approved securities. This loan is preferred by many individuals as the ownership of the securities remains with the borrower. You will continue to reap the corporate benefits of your securities - dividends, interest, bonuses, and rights issues. However, the lenders can liquidate your assets in case of non-payment. Therefore, you should restrict your usage from the sanctioned limit and repay the loan timely without fail.

Conclusion

Since it’s a few loans, you need to not select risky money security to grab it. If the chosen security will go down apace in its price, you won’t realize it is okay to pay the loan EMIs. That’s why it’s sensible to choose safer security to sway far away from the fast market fluctuations.