Know about the Finance and Investments Terms

Investments are precious, as emotions and time are invested in them, apart from money. It could take many years to accumulate investments and as an investor, the last thing you would want to do is to liquidate your investments. Compromising on investments due to unforeseen financial requirements could set you back on your goals.

In times of dire need of cash, there are services that allow you to take a loan against policy without actually having to sell it off.

Insurance policy loan:

You can acquire finance on reaching a surrender value on your policy. Loan against policy requires submission of the insurance policy document, application form, and a few more documents.

Only eligible policyholders with a scheme which is insurance as well as an investment can avail such funds.

Salient features:

• An elaborate time until the policy's maturity for repayment.

• Low-interest rate.

• No verification routine resulting in less processing time.

Digital loan against mutual fund:

The bank holds the MF units as security. Your MF will continue to earn returns, but can't be sold out while you have pledged them to the bank.

Salient features:

• Instant availability of funds in your account on completion of the online application.

• Available against Debt and Equity Mutual Funds.

• No credit history required.

• Interest applicable only on the amount utilized.

Leading NBFCs of the country offer multiple financing services to the borrowers like a loan against shares and can be explored.

To know more about investments and funds. click here: Use Your Investments to Raise Funds Without Liquidating Them