In the event of a sudden financial emergency, your only way out may be a loan. Under such circumstances, a personal loan is the fastest option available. However, the amount is usually disbursed all at once, and the interest is applied to the entire principle, regardless of how you use the money. Hence, at times, if you need a loan and you are not sure of the amount, taking a personal loan may feel tricky.
Alternatively, you may need a long repayment tenure whereas personal loan generally has a maximum repayment period of 5 years. There is also a limit to the loan amount which can be availed through a personal loan. However, if you have financial assets such as stocks, bonds, mutual funds or insurance, you can actually leverage them to receive a line of credit.
With a Loan against Security, you pledge financial assets based on which you are given a limit. Within this limit, you can borrow as much as you need and only pay interest on the amount you have borrowed. Loan against Insurance policy is a product that is offered by many lending institutions, which enables you to enjoy the aforementioned benefits.
However, do note that you can borrow against select life insurance policies only. For example, a permanent or whole life insurance policy qualifies for a loan application. On the other hand, a term life insurance which is a cheaper option that may people invest is not accepted as a document valid for a loan against policy. This is simply because it does have a cash value and is applicable for a specific period of time only.
Must Read: Types of Loans Available in India
Fullerton India has introduced loan against securities that allows you to pledge financial instruments like mutual funds, bonds, etc. However, at the moment, we don’t offer loans against insurance policies.
Read on to know more about Loan Against Securities from Fullerton India.
Interest rates on loan against securities are competitive ranging between 11% to 18% per year. You can get a loan approved for a minimum of Rs. 5 lakhs to Rs. 5 crores. You can avail between 50% to 85% of the value of the security being put up for collateral. The value percentage is also determined by the type of security being pledged.
When taking out a loan against securities, you are essentially borrowing from yourself. Having that said, still, need certain eligibility criteria to be met before the loan is sanctioned.
Take a look at some of the basic criteria.
You need following documents to avail a loan against securities from Fullerton India.
You can apply for a loan against securities at Fullerton India by submitting your interest online. Alternatively, you can also visit a Fullerton India branch located close to your home or office to share an interest in their loan application in person.
Choosing to place your loan application online through the Fullerton India website entails the following processes.
*Terms and Conditions apply. Loans are disbursed at the discretion of Fullerton India.