Everyone has financial emergencies. They may find you when you least expect it, necessitating the need to take out a loan to sort out your short-term needs. One of the financing options you have at your disposal includes loans against shares, which become a great option if you’re keen not to jeopardise your long-term investment plan. These types of loans present many upsides to the common man, which will be delving into momentarily. But before we put the cart in front of the horse, let’s first define what loans against shares are in the first place.
About Loan against Shares
Many people have listed securities including:
- Mutual funds
- Shares and more
In the same way you can offer up a piece of land or your car, for example, as security, so too can you use shareholdings to act as the collateral to secure your loan against shares at cheap rate. With eligible shares i.e. if you have approved share units in NSDL, you can take low interest loans for shares starting from Rs 15,000 all the way up to 10 lacs and sometimes even higher.
Benefits of availing of a loan against shares:
- You can apply from home
Why wait in queues all day, pleading with loan officers who, after all your trouble, may still even turn down your application? You can apply at home loan against shares without having to set foot outside your house. All you need is:
- Your KYC documents which you can submit digitally
- Your phone or computer and an internet connection
Our loan against shares application process is free of manual processes, enabling the remote and digital application of a loan from anywhere, anytime.
- They have the best interest rates
Getting a loan in India can be quite expensive, as, in addition to interest rates ranging from 12 to 24%, you may even have to pay up to an additional 6% processing fee of the value of your loan amount.
On the contrary, Abhiloans offers quick capital against shares loans with some of the best interest rates as follows:
- 13% interest rate for EMI-based loans, where borrowers pay the principal amount and the monthly interest
- 16% interest rate for overdraft loans, where you pay only the interest amount every month
All without any hidden costs so your EMI remains low.
- Your investment remains intact
You may have long-term investment goals for your shares unit holdings, and thanks to a cheap capital loan on shares, you can still get the money you need and safeguard your goals.
When you need money, you don’t have to liquidate your hard-earned shares units, simply leverage them to us here at Abhiloans for a loan against share without having to part with a single unit. As a result, you get to keep making progress towards your objectives even during your tenure period.
- No prepayment charges
This again depends on who you take your quick capital against shares loan from. Banks and many NBFCs can charge prepayment fees, which are meant to dissuade early payment. However, this is usually stipulated in any agreement you’ll sign so be sure to read the fine print before giving any green light.
Some NBFCs, such as ourselves here at Abhiloans, however, work a bit differently from the rest. Borrowers can pay off part of or the entirety of their loan, without any prepayment charges holding them back.
- No credit history discrimination
Many borrowers who have a poor credit track record deal with the following problems:
- They have fewer loan options that usually tend to be exploitative in nature
- In the worst-case scenario, such borrowers can be completely locked out of taking personal loans, among a wide range of other consequences.
A cheap capital loan against shares offers reprieve in this regard as you can secure these types of loans even if you have a bad credit history.
That of course is only applicable if you turn to lenders that don’t take into account your financial history, and one such great example is us here at Abhiloans.
- Small loans are available
Do you require just a small loan amount? Then you’ll be pleased to note that here at Abhiloans, we offer cheap capital loans on shares starting at just Rs 15,000. This means you don’t have to have huge marketable assets to get your loans or give up very valuable collateral that can give you sleepless nights.
Additionally, this also means that our loans against shares are not just for huge financial emergencies, but the smaller equally important ones as well.
- Very high loan to share value
The best part about taking out low-interest loans for shares is that you can get a very good loan to shares unit value of sometimes up to 65%. Of course, this will be influenced by:
- Your lender of choice
- The exact brand of shares you own
At Abhiloans, you can get a loan amount equivalent to 65% of the market value of your shares. This means that if you have Rs 200,000 worth of shares that you want to take a loan against, you can get a loan amount of Rs 130,000.
- Fast disbursal to sort dire emergencies fast
If you have really pressing cash needs such as rent or pending hospital payment bills that simply can’t wait, getting a quick capital loan against shares is ideal. Here at Abhiloans, we offer fast disbursal that ensures you get your loan in just 24 hours. This is made possible by our:
- Fully digital loan application process
- Lack of any manual intervention
- Absence of stringent background checks
So if you need money fast and time is of the essence, a loan against shares is the best way to go, especially if you don’t have huge assets to your name.
Loans against shares are available to anyone who needs cash urgently but either has a poor credit history, few shareholdings or is keen to get the best loan value on the market. At Abhiloans, our cheap capital loan alleviates the temptation to outrightly sell shares when you need money, affording a plethora of convenience features from low EMIs to 0 prepayment charges and much more. To find out if you qualify, start your application process by clicking the “Apply Now” button.