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How You Can Use Your Financial Assets For An Easy Loan

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By Author: Neha Sharma
Total Articles: 218
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Many individuals do not realize that their financial assets can be used to get loans from financial institutions. An individual’s financial assets can be provided as security which helps one receive not only a higher loan amount, but in many cases, improves one’s loan eligibility. The financial assets that can be used to obtain a loan are:

Loan against property
Loan against property is one of the most popular options available in this category offered to individuals. Such a loan allows individuals to get a loan while providing their own property as security. If you have opted for a loan from the same financial institution to purchase the plot of land now being provided as security, the loan application process becomes simpler. The loan amount offered by the financial institution is roughly 60 to 80 percent of the current value of the property. The biggest benefit of a loan against property is the fact that a higher loan is provided with low EMIs. This tends to puts a lesser financial burden on the borrower and ensures the loan is repaid on time.

Loan against fixed deposits
Fixed deposits are believed ...
... to be one of the safest investment options available. Not only is the risk low but the investor is guaranteed with a higher rate of returns. Many financial institutions allow investors to apply for a loan keeping the fixed deposit as security. One can get a loan amount upto 80 percent of the value of the fixed deposit after its maturity. Financial institutions also offer this loan option for a variety of financial securities. There is no penalty charged on the prepayment of such loans which makes it an ideal choice.

Loan against stocks
One can also apply for a loan providing their stocks as security to the financial institution. One cannot apply for a loan on all types of stocks. Financial institutions usually define those only highly liquid shares from reputed companies. This is done so as to ensure that the value of the stocks do not fall causing the financial institution to suffer losses on the same. The amount of loan offered when stocks are used as security is roughly 50 to 70 percent of the value of the shares.

Of all the assets one can use as security to obtain a higher loan amount, a loan against property is the best option available to individuals. Not only does one get a higher loan amount, but the interest charged is much lower.


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