Loan against equity shares is a monetary loan facility. They are offered against listed securities such as shares, bonds, insurance policies and others.
A loan such as a loan against equity shares is beneficial when you need urgent cash. You can acquire the money for any personal and professional needs at a lower rate of interest.
Depending on the worth of your equity share portfolio, its minimum wealth should be at least Rs.10 lakh. The maximum loan against equity shares that you can borrow is up to Rs.10 crore by leading banks and non-banking finance companies (NBFCs).
Here are some quick insights into the loan against equity shares so that you can get to know more about it. Have a look:
- Get a loan value of up to Rs.10 crore
Applying for the loan against equity shares can give you access to a higher amount of up to Rs.10 crore. Be it your personal or professional needs; you can use the loan amount to cover your many diverse needs.
- Relationship Manager
You are also provided with the assistance of a Relationship Manager 24/7 to help you solve your queries related to the loan. This way, you can be sure of the product that you wish to or have applied for.
- Zero part prepayment and foreclosure fees
At any point during the tenor of your loan against equity shares, if you wish to prepay or close the loan account, you can do that. You need not to have to pay extra charges to do that.
- Online account access
Lenders also have a dedicated digital customer portal via which you can access all loan related information 24/7. As a result, you can track its progress right from anywhere and anytime.
- Hassle-free documentation
You need not to have to submit an extensive list of documents to apply for the loan against equity shares. Your basic KYC, income and shares’ documents will be good to go.
- A wide array of approved securities
Most of the leading lenders other than just loan against equity shares offer a wide range of approved securities. These may include mutual funds, FMPs, ESOPs, and bonds.
Loan against equity shares legibility conditions
If you want to apply for the loan against equity shares, you will need to prove your eligibility such as:
- You need to be an Indian citizen
- You should be at least 21 years of age
- You need to have a regular source of income and you should either be a salaried professional or a self-employed personnel
- The minimum value of your securities should be at least Rs.10 lakh
Documents needed for the loan against equity shares
Along with the eligibility conditions, you also need to furnish some basic documents such as:
- ID proofs such as Aadhaar Card, Driving License, or a PAN Card
- Address proofs such as Aadhaar Card
- The documented proofs of the loan against equity shares
- Recently clicked passport sized photograph (coloured)
How to apply for the loan against equity shares?
Applying for the loan against equity shares is easy as you can do that online. Here are some steps that you can take to apply for the loan against equity shares facility:
Go to the loan against equity shares product page of a lender that you wish to apply. Once you are on that page, you can fill out the online application form.
Once you fill out and submit the application form, you will receive a confirmation email and text message. It will let you know the application status.
Submit the required standard documents to the representative of the lender. You will be contacted to take the process forward.
You will get the required loan amount in the bank account after the verification of the documents. You will also get the login details to access the loan details.
You are now aware of some of the basic details about the loan against equity shares and how to apply for it.