Hey, I got to know you need loans but banks are not willing to give loans, We have covered it for you:
Securing a loan has become an uphill battle in today’s stringent financial landscape. Amidst the cash crunch and strict RBI policy, banks are unwilling to give loans, which not only affects the public but also the country’s economic growth.
Normal loans include lengthy processing times, and stringent documentation requirements leaving borrowers frustrated and in dire need of alternative financing options, options which are secure and also fast, and if you have a DEMAT account with some shares in it, you got that option.
Also Read: Maximize your Portfolio: Pros of Taking Loan Against Shares
Loan against Share:
Loan against share allows you take loans upto a certain amount by pledging your shares as collateral.
It allows individuals to unlock the hidden potential of their investment portfolio. Unlike traditional loans that are often burdened with rigid terms and conditions, loans against shares offer a plethora of advantages such as borrowers can access funds swiftly, without the need for extensive paperwork or credit history checks.
Also, the interest rates on these loans are generally competitive which make them a cost-effective option.
How to avail of these Loans:
Instead of selling your investment at a low market rate, this option helps you to pledge your security for the loans. Not only your loans are secured but the investments are also safe with your bank.
Now question arises of how to avail of these loans:
Choose a Lender:
Select a financial institution that offers loans against shares. In India, some institutions are there that give loans against shares ( not every institution gives loans, so check ones).
Pledge Your Shares:
Submit a list of shares you want to pledge as collateral. You have to give them the worth of shares of which you want to take loans.
Valuation:
The lender will assess the value of your pledged shares. Usually, the valuation will be according to different market and company situations. Usually, the valuation is considered less than the actual price( mostly 50% of the price of the shares).
Loan Approval:
After Valuation, the lender will approve your loan. It won’t take much time.
Documentation:
Provide necessary KYC and financial documents. You will need to provide Adhaar details, a PAN card, and a photograph.
Disbursement: After approval of the loan the amount will be credited to your account automatically.
Conclusion:
In an era marked by stringent lending norms, securing a loan has become a formidable challenge for many. However, the landscape of financial solutions is evolving rapidly. Loans against shares emerge as a compelling alternative, offering a quick and convenient way to access funds without compromising your investments.
By leveraging the value of your shareholdings, you can unlock financial flexibility to meet your urgent needs.
If you are stuck in this process, you know where to go. Divadhvik is the most trusted growing financial institution that has everything for you. From personalized guidance to provide you with investing ideas according to your need, we are here to help you in the best possible way.
