5 reasons to Apply for Loan Against Securities

5 MinsOct 18, 2022

A primary goal of financial planning is to be ready to face any kind of financial emergency. To that end, we invest our hard-earned money in several financial instruments. Despite that, there could be situations, when we find ourselves short of ready cash for an urgent need. However, liquidating investments in a time of need defeats the purpose of achieving financial independence. The solution for such problems is 24x7 Loan Against Securities (LAS).

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In today’s unprecedented times, banks have come up with many ways to help you overcome financial crises, and one of them is Loan Against Securities (LAS).

A loan against securities enables clients to obtain loans against their securities without selling them. Customers receive an overdraft facility when they pledge their securities. The amount of loan which you will receive will be based on the securities pledged.

A current account is opened in the customer’s name to ensure easy transactions. Only the amount you withdraw during the usage period determines the interest paid.

Shares, Equity & Debt Mutual Funds, and bonds can be pledged to avail the loan.

From the customer’s standpoint, it is always wise to have quick credit available- These reasons will help you understand the importance of LAS better.

24*7 Availability
Loans against securities are quick and a tap away from exactly how you need your finances to be during an emergency. It saves time and requires Zero documentation. You can get fast cash anytime, anywhere, without the hassle of long processing time like other forms of loans.

High-Value Loans Against Securities
LoansThe best thing about availing of LAS is it saves you from selling your securities and gives you great value against them. Axis Bank provides you up to 85% value of the total securities. The ability to pledge a range of securities, including shares, mutual funds and bonds, is the essential feature of our loan against securities.

Freedom to repay your loan any time
With LAS, you have the freedom to pay back your loan in your own time. There’s no foreclosure charges on the same. You can close the loan as and when you like, renew it yearly, and above all pay interest only on utilisation.

[Also Read 24x7 Loan Against Securities can fulfil your need for funds instantly]

Attractive interest rates
Interest rates on personal loans are high. However, the Loan against Securities interest rates are quite attractive. You become more credible as you pledge your assets against getting the loan. Axis Bank’s LAS provides you with competitive interest rates. The interest rate starts from as low as 10.75%.

Overdraft facilities
Thanks to the overdraft facility, you only pay interest on the amount utilised and gain access to a current account. This works like a line of credit where you have access to the total loan amount, and you will be charged interest only on the amount you use. This provides greater flexibility and independence.

It is always better to have loans against securities rather than any other type of loan. With LAS, you get charged less interest rates as your risk liability is less due to your securities. You can take out money from your equities as well. Still, it is highly advisable not to do so, as when an emergency comes, your securities might or might not be at their best possible value due to market fluctuations. A loan against security prevents you from incurring any loss on your assets due to unforeseen circumstances.

In conclusion, getting ahead requires being prepared for all unforeseen circumstances. Having the option of 24x7 Loan Against Securities, with low-interest rates and high availability, serves like a golden arrow in your quiver that can be used anytime without significantly damaging your financial conditions.

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.