We are now SMFG India Credit Co. Ltd. (Formerly Fullerton India Credit Co. Ltd.)
Published on May 6, 2022Updated on Nov 7, 2022
Financial needs can arise unexpectedly and given the economy's changing consumption tendencies and growing prices; such short-term requirements may prove challenging to provide. A Loan Against Securities (LAS) provides individuals who have invested in financial assets an excellent solution to get access to a line of credit, thereby allowing them to borrow amounts for short-term needs within the approved limits.
The process for loan applications is straightforward. Reputed lenders offering this product allow you to apply online through their website. Next, the lender will check your eligibility and evaluate the pledged assets. If all aspects go well, you will be offered a limit and you can start utilizing this facility to borrow funds as needed.
Mutual funds, listed shares, ETFs, and so on are examples of these securities. This facility is frequently used similarly to an overdraft, and you keep your investment portfolio and all the perks that come with it. Availing a loan against securities can result in quick cash without losing the investment. When the borrower will start to repay the loan, the securities will keep growing depending on the performance.
Pledging securities in exchange for a line of credit from a lender is the foundation of LAS. It's critical to secure the financial viability of the securities in the long run, as well as the health of the portfolio you're managing. A portfolio with a mix of securities versus a portfolio with only one type of security would provide customers with various benefits. Assess and examine your needs with your lender before making a decision.
Research is key. Make sure you take time to research the market and go for the lender who gives the most value for your investments. At Fullerton India, we offer an LTV (loan to value) of upto 50%-85% depending on the nature of the securities pledged to eligible borrowers. Following are the securities that can be pledged for availing this facility:
Lenders provide a list of securities that one can pledge to get access to funds. Hence, while doing research on lenders, make sure to also make sure that your holdings and securities are eligible to avail loan. Some lenders also provide pre-approved loans against securities where these offers are hassle free and require one step verification. At Fullerton India, we have one of the widest ranges of listed shares, mutual funds and bonds against which eligible borrowers can avail the LAS facility.
It is strongly advised to check the lender’s eligibility criteria before applying. To apply for a loan against securities facility from Fullerton India:
Here are the basic documents required for availing a loan against securities:
Please note that this is just the basic list. Depending on your profile and our policy, additional documents may also be requested.
The application process is very straightforward at Fullerton India. Just click on the “Apply now” button on this page to begin your online application. Apart from your basic details, the total value of securities have to be mentioned. After you submit your application, we will evaluate your details depending on your eligibility.
If you keep in mind these four points, it will be very easy for you to avail the loan on securities and opting for a loan against securities can keep intact the value of the shares for future growth of funds.
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*Terms and Conditions apply. Loans are disbursed at the discretion of Fullerton India.