Loan against security
Loan Against Securities is a type of personal loan in which the person taking the loan pledges any kind of securities with the bank to raise money, such as life insurance policy, stocks, shares, bonds, fixed maturity plans. And mutual funds. Loan Against Securities is like an overdraft in that you can withdraw money from your bank account and pay interest only on the amount utilized. In this article we will tell you about its features, interest rates, eligibility, required documents.
Features & Benefits of Loan Against Security
- Interest Rate: 7.75% per annum.
- Starting from Loan amount: Rs 25,000 And Rs 20 lakh.
- Secured Personal Loan – Bank requires security/collateral
- It works almost like an overdraft facility
- Interest rate is paid only on the amount used
- Repayment period: Up to 3,6,9,12 months – will vary as per bank
- Loan will be available against pledge of policy, shares, bonds etc.