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calenderApr 5, 2024

A stitch in time: My experience with Loan Against Securities

If you are in urgent need for cash to face unexpected challenges or emergencies, there's no need to break the bank. With Axis Bank, you can avail Loan Against Securities from the comfort of your home and get credit up to 85% of the pledged securities at attractive interest rates. Here's a fictional story to take you through the journey of LAS.

I am a small business owner named Arjun, and this is my story of navigating through an unexpected challenge with the support of Axis Bank's Loan Against Securities (LAS).

Business had been good until unprecedented torrential rains soaked our city. My electronics store, the heart of my livelihood, was submerged overnight. As I assessed the damage, I realised I needed immediate funds to recover from the catastrophe. Insurance would help, but I knew it would not be quick enough for the immediate repairs and restocking.

My dilemma was that a chunk of my wealth was tied up in various investments, including demat shares, equity mutual funds, and bonds. Selling them was an option, but one that would cost me dearly in the long run. That's when I remembered a conversation with a friend about the LAS facility from Axis Bank. He had mentioned it as a smart way to get funds without missing out on the growth potential of your investments.

I browsed through Axis Bank's website and found the LAS feature promising. They offered Loans Against Securities, with an attractive interest rate of just 9.99% for online processing. Compared to the interest rates on Personal Loans and Credit Cards, this was significantly lower and thus more manageable.

What grabbed my attention was the ability to get high-value loans for up to 85% of the security's value. This meant I could get a substantial sum without letting go of my investments.

Deciding to go ahead with LAS, I started the application process online. It was a straightforward system, and within minutes, I had applied for the loan. To my relief, the approval came through just as quickly, and I had the much-needed capital to jumpstart the repairs. Axis Bank's policy of charging interest only on the utilised amount added another layer of financial prudence to my decision. It meant I could take a loan of ₹1,00,000 for my Debt Mutual Funds and ₹50,000 for my bonds without worrying about excessive interest payments.

The flexibility of the loan was a lifesaver. With the ability to choose a customised repayment plan, I didn't feel pressured by hefty EMIs or stringent timelines. I had the breathing space to get my business up and running again and start generating revenue before worrying about repayments.

My investments remained intact, working for me in the background, and I had the liquidity to address the immediate needs of my business. The LAS was like a bridge, connecting my current crisis with a stable financial future without any trade-offs.

The overdraft facility was another aspect of the LAS that provided me with a safety net. Knowing that I could withdraw additional funds in case of any more unexpected expenses gave me peace of mind. And with no prepayment charges, I could repay the loan as my business recovered without any extra costs.

In retrospect, opting for a Loan Against Securities with Axis Bank was one of my best financial decisions. It helped me swiftly overcome the hurdle without derailing my long-term financial plans or sacrificing my investments' potential. It was not just about recovering from a setback; but about doing so without compromising my future growth.

Also Read: Smart strategies for responsible utilisation of Loans Against Securities

Conclusion

For anyone in a similar predicament, consider LAS, especially the one offered by Axis Bank, as it's a smart strategic move that ensures you don't have to liquidate your assets and lose out on future gains. With its easy online process, attractive interest rates, and flexible repayment options, the LAS is a testament to how modern banking can provide solid support in times of need.

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.