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How Long Does the Approval Process Take for a Loan against Security?

In the world of personal finance, having a diversified portfolio of assets is often considered a prudent strategy. It is like owning a toolbox with various tools for different purposes. You may possess multiple valuable assets, such as real estate, stocks, or bonds. But can these multiple valuable assets be used as collateral to secure multiple loans? If yes, how long does it take to get the approval for such a loan? Let’s find out

Can you Avail of Multiple Loans against Different Securities?

Well, the good news is that you can indeed avail of multiple loans against different securities. Each asset can serve as collateral for a separate loan, allowing you to leverage your assets effectively. This can be particularly useful when you have specific financial needs that require different loan amounts or when you want to allocate your assets strategically to meet various objectives.

For example, let’s say you own a residential property that has appreciation and a stock portfolio with substantial investments. In this case, you can potentially avail of a mortgage loan using the property as collateral and simultaneously secure a line of credit or a loan against your stock portfolio. By doing so, you can tap into the equity of your property while also maintaining the potential growth of your investments.

The key lies in identifying the lenders who accept specific types of collateral and their respective terms and conditions.

Lenders may have varying policies on accepting collateral, and the loan amount you can secure will depend on the value of the asset pledged.

Additionally, before proceeding, it is essential to carefully evaluate the terms and interest rates associated with each loan to ensure it aligns with your financial goals and repayment capabilities.

Duration for Approval Process for a Loan against Security:

The approval process for a loan against security can take up to a few days to a few weeks. It generally varies depending on several factors, including the complexity of the collateral, the lender’s internal procedures, and the completeness of your application.

The approval process for a loan against security typically involves several steps, as outlined below:

➡️ Application Submission: 

  • Begin by submitting a loan application to the lender along with the necessary supporting documents, such as proof of identity, income, and ownership of the pledged security.
  • Ensure that you provide accurate and complete information to avoid any delays in the process.

➡️ Verification and Evaluation: 

  • The lender will verify the information provided and evaluate the value and marketability of the collateral.
  • This may involve assessing property appraisals, reviewing stock portfolios, or analysing the financial health of your business.
  • The duration of this step depends on the complexity of the collateral and the availability of appraisal services.
  • For example, evaluating the value of real estate may take longer compared to appraising liquid securities like stocks.

➡️ Loan Offer and Terms: 

  • Once the verification process is complete, the lender will present you with a loan offer, specifying the approved loan amount, interest rate, repayment period, and any associated fees.
  • Take the time to carefully review and understand these terms.
  • If you have multiple loan applications, compare the offers from different lenders to choose the ones that best suit your needs.

➡️ Documentation and Collateral Pledge: 

  • If you accept the loan offer, you will need to complete the required documentation and pledge the identified security as collateral for the loan.
  • This step involves legal formalities and may require you to engage with lawyers or notaries, especially for high-value assets like real estate.
  • The time required for documentation can vary depending on the complexity of the collateral and the efficiency of the legal processes.

➡️ Approval and Disbursement:

  • The lender will conduct a final review, considering factors such as creditworthiness and collateral value, before approving.
  • Once approved, the loan amount will be disbursed to your designated bank account.
  • The disbursement process typically takes a few days to complete, depending on the internal procedures of the lender and the banking system.

If you find yourself in need of a loan against your valuable securities, it is essential to partner with a reliable and trustworthy financial institution. Here, Rurash Financials, can guide you through the loan acquisition process with our expertise and professionalism.

Rurash Financials offers you the opportunity to borrow funds with the lowest interest rates starting at 9%. This helps you to fulfil immediate financial needs without selling your portfolio.

Our quick approvals, within 24 hours, and hassle-free process ensure a seamless experience. There are no EMIs; only interest needs to be serviced monthly. Enjoy the benefits of investment appreciation and easy switching of pledged securities. Choose from over 800+ approved securities.

The best part is we believe in offering our clients the utmost flexibility and transparency. Therefore, there are no prepayment charges or lock-in periods associated with.

To know more about the process of availing a loan against securities, connect with us today or write to