Loan Against Securities – Piramal Enterprises
Piramal Enterprises Limited (PEL) is a major diversified non-banking financial company of India, under the umbrella of the Piramal Group. It has significant diversification in several sectors including pharmaceuticals, financial services, and real estate. Piramal Enterprises was founded during the 1980s with its headquarters in Mumbai and it operates in 30 countries with assets approximately valued at $10 billion. The company is founded on business lines which primarily consist of retail and wholesale lending like loan against securities, alternative investments, and life insurance; hence the company embraces technology to enhance services with a better customer experience.
Besides, the financial services offered by Piramal Enterprises include loans against securities, where any individual can use one’s investment in shares, mutual funds, and bonds as collateral to acquire ready liquidity without selling one’s assets. In this regard, the amount of loan sanctioned shall be justified based on the market value of the pledged security. Thus, customers can use this as an option for flexible finance especially for personal or business requirements.
Features & Benefits - Loan Against Securities
The company gives three types of loans against securities:
- Loan Against Shares
- Loan Against Mutual Funds
- Loan Against Bonds
These loans allow clients to pledge marketable securities as collateral, thus raising funds for financial or personal needs without liquidating the investments. This ensures liquidity devoid of capital dilution, making it an appropriate solution for covering contingencies, satisfying needs on financial demands, or opting for alternative investment options
- Quick Processing: The application process is streamlined for fast approval and disbursement.
- Competitive Loan-to-Value Ratio: Depending on the type of security pledged, customers can access up to 50-75% of the market value.
- Flexible Repayment Options: Borrowers can choose from various repayment plans that suit their financial capabilities.
- No Prepayment Penalties: Customers can repay their loans early without incurring additional charges
Eligibility Criteria - Loan Against Securities
To be eligible for a loan against securities with Piramal Enterprises, one should:
- Age: Applicant above 21 years.
- Nationality: Should be a citizen of India or its resident.
- Ownership of Securities: Should possess marketable securities, such as stocks, mutual funds or bonds, which are releasable for pledging, and thereafter, a loan could be availed.
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- For shares, LTV is 50%
- For mutual funds, the LTV is between 50% and 75%.
- Interest Rates: Generally range between 10% to 15% per annum.
- Everyday Interest Calculation: The interest is calculated on the amount due on a day-to-day basis. This does away with the vagueness amongst the customers.
- Processing Fees: One-time processing fees ranging between 1% and 2% of the amount borrowed.
- Penalty Fee for Late Payment: This fee is levied in case any repayments are not made within the stipulated time.
- Prepayment Fees: This fee is charged and generally waived. However, it has to be especially disclosed at the time of granting the loan.
The rate will depend upon the kind of security presented to be pledged and the credit profile of the applicant.
Piramal Enterprises has been able to lead as a respected financial partner of all those who need any kind of loan against securities. Its strong infrastructure, customer-centric approach, and innovative financial solutions keep PEL abreast of catering to diverse clients across India while going about promoting sustainable growth through positive business practices.
Application Process - Loan Against Securities
- Visit www.divadhvik.com and start your credit journey by filling up the form
- The applicant needs to fill in the online application form along with personal details.
- Submit necessary documents including an Aadhaar Card, PAN Card, proof of address, and details of shares, mutual funds, or bonds.
FAQ's - Loan Against Securities
Piramal Enterprises Limited (PEL) is a leading non-banking financial company in India, diversified across sectors like pharmaceuticals, financial services, and real estate. It operates in 30 countries with assets valued at approximately $10 billion.
A loan against securities allows individuals to use shares, mutual funds, or bonds as collateral to secure liquidity without selling their assets, offering flexible financing options.
A Loan Against Securities allows you to borrow funds using your shares, mutual funds, or bonds as collateral without selling them, while still earning dividends.
You can borrow 50% to 70% of the market value of your securities with fast disbursal, usage flexibility, and ownership retention of the pledged securities.
You need identity proof (Aadhaar or PAN Card), address proof, income proof, and recent statements of your pledged securities.
Interest rates range between 10% to 14% annually, with a processing fee of 1%-2%. Prepayment charges are usually nil.
