WHAT IS LAS ?
| LOAN AGAINST SECURITIES is a loan where you pledge your shares, mutual funds or life insurance policies as collateral to the bank against your loan amount. Loan Against Securities are typically offered as an overdraft facility in your account after you have deposited your securities. You can draw money from the account, and you pay interest only on the loan amount you use and for the period you use it. Is taking loan against securi ties good? But if the loan required is high, then Loan Against Securities is the better option. A loan against securities is cheaper when compared to interest rates on a personal loan. In case of emergencies, if you have securities, it is advisable to take a loan against your investments rather than liquidating them. |
WHY CHOOSE US..?
Loan Against Securities (LAS) is a type of loan where a borrower pledges their securities such as stocks, mutual funds, bonds, and other financial assets as collateral to obtain a loan from a lender. LAS allows individuals to leverage their investments and receive immediate liquidity without having to sell their securities. The lender determines the loan amount that the borrower can avail under LAS by calculating a percentage of the market value of the pledged securities. The determination of the loan amount is based on various factors such as the type of security, creditworthiness of the borrower, and prevailing stock market conditions.
Benefits Of Loan Against Securities (LAS)
- Each type of security comes with its own benefits and risks. For example, equities offer the potential for high returns but can also be highly volatile. Fixed-income securities are less risky but may offer lower returns. Mutual funds and ETFs can provide diversification but may be subject to market fluctuations.
- Before pledging any security for LAS, it is essential to understand the risks associated with it and to evaluate whether it is suitable for your financial goals and risk tolerance. It is also important to work with a reputable lender and to carefully review the terms and conditions of the loan agreement.
Facts
- Creditworthiness of the Borrower
- Loan Amount
- Loan Tenure
- Prevailing Market Conditions