If you sell your carefully chosen securities for urgent cash needs, you may lose potential capital gains that could be earned in the long run. In the interim, you can raise funds to handle unexpected crises by taking a loan against securities. This preserves the value of your securities for future growth.
There are Five reasons Why you should take a Loan against Securities.
High-value loans made easy
A loan against securities of up to Rs. 10 crores can be obtained by using shares, mutual funds, FMPs, ESOPs, IPOs, and bonds as collateral. This loan is quite versatile as it allows a restriction-free use of funds and is easy to qualify for.
Quickly finance your urgent needs
It is not uncommon for urgent monetary requirements to arise without warning. Emergency hospitalizations, for instance, require immediate attention and funds. It may seem convenient to liquidate your savings and investments in such situations. But instead of selling your securities, you can apply for a quick loan against securities and get instant funds within 48 hours after you apply. In both personal and professional situations, this quick application and disbursement process saves time and prevents wealth loss.
Make your investments more profitable
A diverse mix of securities, considering both short-term and long-term gains, has been used to build your investment portfolio. Over time, these instruments can grow and generate high returns when left untouched.
Imagine if you liquidated them before they matured or when unsuitable market conditions would prevent you from earning future profits. You can benefit from a loan against securities in this situation. As long as your equity holdings are earning profits and dividends, you can pledge your investments to raise funds.
Wide range of securities against which you can borrow
Even if you have a diverse investment portfolio, you may still prefer putting up only particular securities as collateral. FDs, for instance, contribute monthly returns that you may need for household expenses, so you will not want to pledge them as collateral for a loan.
You may instead pledge shares or bonds. With this loan, you can pledge any security as collateral, such as mutual funds, fixed maturity savings, insurance or even scrips, as long as the security is worth a minimum of Rs. 10 lakh. Rurash Financials can help you get a loan against 800+ approved securities, so no matter what form of financial security you own, we got you. You can easily get personalized help to make this loan process absolutely quick and hassle-free.
Repayment terms that are convenient
By pledging your high-value securities and equity holdings, you can take advantage of easy repayment terms. You are able to foreclose or make part-prepayments on your loan without incurring any additional charges. Moreover, you have the option of choosing a tenor for a maximum of 36 months.
You should choose the right lender and decide which securities you wish to pledge before applying. Make sure you have a sound repayment plan in place to ensure a hassle-free experience.
A loan against securities can provide you with multiple benefits. Without liquidating your investments, you can borrow against securities if you need cash urgently. Despite the borrower’s pledge, dividends and profits are earned on the investments.
Considering that these loans have no EMIs and are flexible in repayment, it is not advisable to sell assets quickly or at a loss. The best option would be to raise funds through LAS instead. When you opt for a loan against security via Rurash Financials, you will be able to get customized loan solutions based on your investment portfolio and needs.
By taking a loan and pledging your securities with Rurash Financials, you will be able to take advantage of the most competitive interest rates.
Rurash Financials is one of India’s leading investment management firms, providing financial solutions to augment investors’ wealth and facilitate building a legacy.