Know about the Finance and Investments Terms

There are so many types of loans where you can get money by keeping assets as collateral. If you have every invested in the mutual fund, stocks, bonds, insurance, IPOs, ESOPs, shares and securities, then you can get a loan against securities, by keeping these collaterals.

You can even connect your trading account with your regular bank account. You should have an overdraft facility on your current bank account, then you will be able to use your net banking facility to apply for a loan against securities.

Steps to apply for a loan against shares are:

Select the lender

First, you should select the ideal bank or financial institution where you can apply for a loan against securities at a lower rate of interest, the eligibility criteria of a loan is less and offers many additional benefits.

Submit the online application

You need to submit an official request to acquire a loan against securities by filling the application form either offline or online. You need to attach the assets portfolio along with your loan application, to get the loan approval.

Provide documents

After you have filled the form, you need to submit all the relevant documents required by the bank. You need to check what all documents are demanded by the lender and then gather those documents.

Wait for approval

Once, you are done from your side, you just need to wait for the loan approval. The bank or NBFC will verify the form along with the documents that you have submitted. Once, everything gets approved, you will get the loan amount at your bank account easily.

To know the other factors, related to the loan, read: How to get the loan against assets?