5 Tips to Qualify for Loan Against Securities

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Jul 27, 2021Other Loans

India has a robust securities and shares market which is proof of the fact that more and more investors are turning towards shares and securities as an instrument of investment rather than simply depending on savings alone. Investing in securities and shares not only adds to the individual’s overall net worth but can come in extremely handy if you need to avail of short term loans.

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When in need of immediate funds, you can apply for a loan against shares or securities by simply pledging them to a lender. A loan against securities gives you access to a line of credit. You can then borrow as much as you need whenever you need within this limit. Thus, your financial assets pledged act as collateral that allows you to access funds at short notice without having to forgo the ownership of your investment. As you continue to repay back your loan, you keep earning profits and dividends on your securities and shares that keep the influx of funds rolling in your direction.

Tips to Consider Qualify for a Loan Against Security

If you have decided to go ahead with your application for a loan against securities or shares, you need to ensure that you meet the qualifying parameters. Here are some tips that can help expedite the process:

1. Define The Purpose of Availing the Loan:

It is important that you define the purpose of why you are in need of a loan against shares or securities. This will help to ensure that you are able to successfully meet all the required qualification parameters.

Having clarity on the objective for which you need financing in the short term along with an understanding of the features and benefits of loans against shares or securities that complements the goal will help you come to an informed decision.

2. Go For a Lender That Offers You The Best Value:

You will find several lenders offering you massive loans against your shares and other financial assets. While the amounts may sound very attractive, it is essential that you choose a lending partner that offers you the maximum value for your holdings.

Fullerton India offers loans against shares and securities for up to Rs. 5 crores with an overdraft and line of credit facility. With a swift disbursal process with minimal paperwork, Fullerton India’s loan against securities or shares is one of the best ways to raise funds to meet your financial needs in the short term.

Must Read: All You Need to Know About Loan Against Insurance Policy

3. Run A Check On Your Securities & Shares:

Loan against shares or securities can only be availed for a list of pre-approved shares, securities and equity holdings. This can be a mix of listed Shares, Mutual Funds, Bonds and Exchange Traded Funds (ETFs).

Check your loan against securities eligibility at Fullerton India to understand your eligibility. A few applicants who meet the required criteria may be eligible for pre-approved offers in which case there will not be a need for any extensive documentation at all. In addition to that, the loan will be processed seamlessly with a fast turnaround for disbursal.

4. Meet the Eligibility Criteria:

Here are some basic eligibility parameters that applicants must meet in order to apply for a loan against securities and shares. These include:

  • Be a citizen of India
  • Be between 21 and 65 years of age at the time of loan application
  • Be a salaried employee at a private or public enterprise or demonstrate a regular source of income for self-employed individuals
  • Have a minimum CIBIL score of 750
  • Have the required financial assets to pledge which have a good rating and meet Fullerton India’s policy requirements.

If this is successfully met, the applicant may proceed towards submitting all the necessary loans against securities documentation

5. Parameters of Credit Underwriting:

The lender will review your application, documentation and your overall creditworthiness before approving your loan request. This will involve running a credit rating check that evaluates your financial profile, a security analysis of the tradable financial securities that you wish to pledge and determining their rightful value taking into account possible market fluctuations. 

Fullerton India offers attractive loans against securities interest rates to customers availing loan amounts starting from Rs. 5 lakhs to Rs. 5 crores. 

Applying For a Loan Against Securities

The process of applying for a loan against securities at Fullerton India is hassle-free and simple. The entire process can be completed online. 

The actual disbursal process may take anywhere between 24 hours to a few days.

Conclusion

Loans against securities and shares are secured loans and hence have a higher sanction rate. Generally, these loans come with the benefit of flexible options with multiple drawdowns and repayments during the tenure of the loan. No doubt why this is an attractive loan facility availed by so many across the country. 

A: Filling Out the Application Form: Click on the “Apply now” button on this page and fill out the relevant application form. You will be required to share your personal information along with compulsory fields that will require you to share your financial and work-related details.

B: Document Submission:While the list of documents is minimal for loans against securities and shares, you will need to provide the following:

  • KYC documents that include PAN and AADHAAR card, driver’s license etc.
  • Bank account proof
  • Demat account proof
  • Demat / Mutual Fund holding statement
  • Income proof as applicable depending on salaried or self-employed status

C: Loan Amount Disbursed: If all parameters are satisfied, the loan request should be quickly approved. Applicants will be notified via a sanctioned letter emailed to their registered id.

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