When the price approaches the 52-week low, the buyers and sellers react differently based on their holding position and risk appetite. This 52 week low is one of the important parameters which are looked at by investors before investing in that particular stock. Mentioned in the above picture are a few top blue-chip names along with LTP, which are at 52-week lows as on June 16, 2022.

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Many institutions offer quick processing and attractive interest rates to the borrowers for this facility. Interest rates, while differing from one institution to another, are generally lower than that of a credit card or a personal loan since they are secured by a collateral which is the security pledged.

Easy, Faster Processing

Most institutions also offer a simplified process for availing this short term loan facility which is sometimes processed even faster than a normal EMI-based loan by some of the larger banks and financial institutions.

Advantages Of Loan Against Securities:

• Ideal for short term funding.
• Enables instant liquidity against shares without selling them.
• Takes care of all investment as well as personal needs.
• The tenure of the loan against security is one year, but it can be easily renewed.
• The rate of interest ranges from 9 – 12%. The rate varies from bank or NBFC.
• The processing fee is charged at ~1-2% of the loan amount.
• The loan amount depends on the security the borrower is offering.
• No charges for prepayment of the loan.(T&C apply)
• The loan has to be repaid within the fixed period. If the borrower fails to make the payment, the lender can file a case for recovery and the balance amount has to be repaid within 3 years from the date of sanction of the loan.

The post How to get best Loans Against shares , Mutual funds and Bonds . appeared first on Shareloan.

Only Shares as collateral can be pledged and rest few T&C are applied , Loan against Securities facility is available to individuals, commercial entities and corporate bodies

Eligibility For Loan  Against Shares are as follows:

• Simple and speedy processing
• Access from anywhere at any time
• Must have a source of Income
• Should be citizens of India
• Minimum Loan Amount : 10 Lakhs
• Maximum Loan Amount : No Upper Cap
• Shares should be in Dematerialized form only

Securities On which loan can be availed:

• Shares
• Mutual Funds (Debt & Equity)
• Bonds
• Debentures
• Insurance Policies
• ETF’s

The post What are the points to be considered while taking a loan against securities, i.e., shares? appeared first on Shareloan.

Collateral
Banks provide a complete list of approved securities against which they are willing to offer a loan. A lien is created against these securities in order for the loan to be taken. The value of loan is a percentage of the value of the securities, which can be anywhere between 70% (for equity shares), 90% (for bank deposits) & 60–70% (for mutual funds) , Approved Bonds (85%) .

Process
A current account with overdraft facility is opened and a borrowing limit is set based on the value of the collaterals. Investors can withdraw from the account whenever they choose, and can repay it by depositing the amount back into the current account. The process is simpler and more flexible than that of an EMI-based loan.

Interest
The interest rate on an LAS is lower than that of a personal loan or a credit card, since it is secured by collateral. Interest is charged monthly, quarterly , semi annually or yearly (Depending on client) , on the basis of the daily outstanding balance in the overdraft account.

Flexibility

Once the limit is sanctioned based on the value of the collateral loan amount is directly transferred to bank account which client can withdraw from ATM aswell or Cheque .Repayment can be made based on cash inflows at any time or Shares pledged can be changed or increased/decreased anytime from any scrip category to another and after payment or early loan share pledged can be removed in few days .

The minimum amount of a loan against shares/securities is 10 lakh while the maximum amount that can be arranged is more than 100–200 Crore .

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