Most people have realised the importance of investing. Mutual funds and equities have seen inflows from investors like never before. SIPs are one of the best ways to maintain discipline in investing. It allows you to automatically invest a predetermined amount of money each month in a specified mutual fund scheme. However, there might arise certain situations where you need funds urgently. In such a case, is it a wise decision to liquidate your long-term investments to just meet short-term financial contingencies?
Obviously no! Then what’s the solution? That’s where the Loan Against Security comes into play. Let’s understand more about it.
What are Loans Against Securities?
Loan Against Securities are a type of secured loan that you can avail against your investments. Banks and financial institutions usually grant loans against securities like equity shares, equity mutual fund, debt funds, convertible debentures, listed bonds, etc. This allows investors to obtain the necessary funds without diluting their investments, providing them with room for growth and compounding.
Axis Bank Loan Against Securities
Here’s how you can apply for an LAS with Axis Bank in 3 steps -
- Select securities: It all begins with selecting securities against which you wish to avail of the loan. You should check the LTV that the bank is offering against different securities. The loan-to-value ratio helps determine the amount of loan you can get against the value of the securities that you are offering as security. You can check it out here!
- Calculate the Overdraft limit: Using the LTV, you can calculate the Overdraft limit. Simply apply the LTV ratio to the value of the securities that you can offer. This will give you an approximate idea of the value of the loan that you can get.
- Avail of an Overdraft: Once you complete the above steps, the bank will process the application. Once it gets approved, you can avail of the Overdraft facility and use the funds to meet your needs.
Why Axis Bank for LAS?
- Convenient process: The process to apply for a Loan Against Security is simple and convenient. You can simply navigate to the portal and make the application. You don’t need to visit the bank branch, and you also don’t need to submit any documents physically. The entire loan application process is digital and online.
- Simple eligibility: The eligibility criteria for a Loan Against Security is simple and easy. Individuals aged 18 to 75, who have a singular mode of holding in their investments, meet the eligibility criteria for LAS.
- Affordable: The interest rate for loans against security is quite affordable and competitive. You can check out the interest rate and other charges here.
- Good LTV: Axis Bank provides one of the highest LTVs in the case of Loan Against Security. This allows you to avail of a higher amount of loan by providing a low amount of security as collateral.
Also Read:Financial independence is just a secured loan away!
If you too are searching for affordable Loans Against Security, apply now with Axis Bank!
Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision.
