4 MinsNov 10, 2022
For those of you who are active in the stock market, you may have just deployed some surplus funds into an investment opportunity. Since you earn a steady income, you are confident that you can replenish your emergency kitty sooner than later.
However, an emergency can strike when you least expect it. As a thumb rule, you are forced to pull out of your last investment to pay for the sudden expenditure. You may not have to do that after all.
Thankfully, there’s a way out – Axis Bank’s Loan Against Securities can fulfil your urgent requirements without you selling your securities.
What is a Loan Against Securities?
Loans Against Securities work as an overdraft facility that you can avail by -pledging bonds, mutual funds, or shares as securities to get an instant loan. There’s a zero prepayment
fees. The transaction is quick and secure.
Axis Bank recognises your need for quick cash and meets it by providing you with 24*7 LAS from the comfort of your home with just a few clicks on your PC or mobile app. Your life is made simple by an OTP-based, zero documentation instant loan
amount in your overdraft account.
You can borrow money by leveraging your current holdings by taking loan against securities. You will continue to be credited with an interest, dividends, bonuses, etc., on the pledged securities during the loan term. For long-term investors, this
financing facility offers a great choice. You can fill your short-term fund shortfalls without endangering your long-term financial goals.
Why go for a loan against securities in a bull market?
- Flexibility for a high-value loan against securities:
Axis Bank has approved many securities that you could choose to pledge. As long as the security is on Axis Bank's list of acceptable securities, it may be utilised
as collateral for this loan, including shares, equity mutual funds, debt mutual funds and bonds. You can get a minimum of ₹25,000 or ₹1,000,000 and a maximum of ₹20 lakh or ₹1 crore, depending on the security, for equity and debt mutual
- Attractive interest rates:
With loan against securities, the interest rates are very affordable. As you commit to your securities as collateral for the loan, you gain credibility. The liability risk here is minimal compared
to other loans that depend on your future income. The LAS from Axis Bank offers you affordable interest rates. The interest rate ranges from 9.99% to 10.99%, which is significantly lower than a personal loan.
[Also Read: 24x7 Loan Against Securities can fulfil your need for funds instantly]
- Ongoing dividends and returns:
When loans are made against securities, the securities stay on the market, allowing you to continue to profit from your assets. The bank has no control over any payments, including dividends
from preference shares or interest income from bonds. You get returns on your investments if you don't fall behind on your payments. You can save money for the future or pay off your EMIs with this additional income.
- Flexible repayment terms:
Axis Bank gives you the freedom to repay loans at your convenience. To help the customer remain stress-free, the bank asks for no prepayment charges or other extra charges and gives you the preference
to choose a loan repayment tenure of up to 36 months.
- Pay interest on the amount utilised:
Axis Bank lets you pay only on the amount utilised and not on the total loan received by the customer. This step is taken to provide the customer's some ease and convenience.
You can relax when it comes to loan-related transactions. As was already indicated, the bank gives you access to a separate overdraft account where you can keep track of all your activities. Your account
will show any payments you make. Additionally, Axis Bank discloses any fees related to the loan, such as processing costs, interest rates for loans secured by securities, etc.
With Axis Bank, you don’t have to relinquish control over your assets. We provide you with an umbrella on a rainy day. You can get one of the best and lowest interest rates and a reasonable loan with our Loan Against Securities.
You can quickly obtain LAS 24*7 and get the amount credited within minutes.
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.