It is possible that exigencies may require that specific finances be put up, or you may be facing a cash crunch in order to meet any urgent need. Despite the fact that loans are becoming more accessible, they carry high-interest rates, as well as stringent terms that make it challenging to obtain a typical loan. You may be required to put your prized possessions up as collateral, making them a risky investment. Taking out a loan against your securities/shares is a smart alternative if you are in urgent need of funds and don't want to trap your physical possessions.
Before you apply for a loan against securities, here is everything you need to know
No Loss of Ownership
Owning financial investments is an important safety net for all organizations. During challenging times or stages of growth, it becomes imperative to explore financing options that allow you to obtain financial assistance without jeopardizing your ownership of the investments. This is where a loan against securities can be helpful.
Liquidating securities is the only solution one can see when they are facing financial difficulties. When you obtain a loan against securities, you can access the funds you require without having to liquidate the assets and investments that you have spent years developing. Following this, you can use the proceeds of these investments to meet the immediate and near-term needs of your organization. Thus, loans against securities do not take away the ownership of your investments while they are pledged with the lender, contrary to what people believe and what the trend might suggest when it comes to loans.
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Easy Repayment
The benefit of a loan against securities is that you will only be charged interest on the funds you use. For businesses or individuals seeking short-term funding, the loan process is more accessible due to the ease of repayment.
Rurash Financials helps you connect with lenders that can offer easy repayment offers. Thus, each month, you have to pay interest on the amount you have utilized. You are not required to repay the principal amount until the end of the term. As opposed to the general belief regarding personal loans, and unlike other forms of loan, you do not have to pay interest on the entire amount taken, only the amount you withdraw or use.
Flexibility in Collateral
During the loan application process or tenure, you can switch from one security to another that may benefit you financially more. Rurash Financials can help you avail of a loan against 800+ pre-approved financial securities easily, sourced only through trusted lenders in the industry.
Suppose the situation arises that you need a top-up over the loan amount sanctioned. In that case, you can easily avail yourself of it in the case of a Loan against Securities by pledging more shares, mutual funds, or even insurance policies and bonds.
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All About Money
Rurash Financials can help you get loan amounts as per your need ranging from Rs 10 Lakh to Rs 100 Crores.
The calculations consider your investment’s market value, the organization’s credit history, current leverage, trade reputation, and other relevant factors. You can get loans against securities up to 50% of the market value on approved scripts and up to 80% of the net asset value of mutual funds.
This process gives you more control over your finances because you don’t have to pay interest on the entire loan.
The Process
People often think that getting a loan is a complex process, and for the most part, they are right. However, getting a loan against securities differs from other loan processes because you need KYC documents and investment proofs. Basic mandatory information and minimal documentation are required for the process. The whole process can also be done online.
You don’t need to wait around or visit multiple locations. You can reach out to Rurash Financials, and we can help you begin the application process by selecting the loan amount, tenure, and financial assets you would like to pledge in a hassle-free manner. Our relationship manager will handhold the process and help you source an overdraft through one or more than one lenders.
In addition, at Rurash Financials, we ensure that the credit assessment is quick, hassle-free and secure.
Conclusion
By taking up a loan against securities, you can also avail of the borrowing potential of the stock market investments. The critical point here being that you have to find the right financial institution that helps you take a loan against shares. People often fall prey to certain incorrect beliefs that are in the trend, such as believing that a loan against security will be a burdensome approach and just like any other loan it will take time to process and funds will not come in the required time. We at Rurash Financials understand the gravity of your situation and we handhold you throughout the required process so that availing of a loan against security does not add a burden to your problem.
Rurash Financials is one of India’s investment management firms, providing financial solutions to augment the client’s wealth and facilitate building a legacy. For any guidance regarding financial instruments, Connect with the relationship manager now or write to: las@rurashfin.com
