loan against securities eligibility
  • Loan Against Securities or a Personal Loan? A Quick Guide!

  • Published By:
  • Category: Finance
  • Published Date: January 17, 2019
  • Modified Date: May 12, 2020
  • Reading Time: 3 Minutes

Featured Image Caption: Loan Against Securities Eligibility

The loan against securities is one of the affordable loan options in India. If you have invested some money in shares, fixed deposits, mutual funds and more, you can borrow a large amount of money. The collateral in this loan type is your invested securities. Hence, you can avail an affordable loan against securities interest rate.

The loan against securities can work wonders if you wish to fulfil some goals demanding a large amount of money. Based on your loan against securities eligibility and the value of your invested securities, you may borrow up to Rs.10 crore. You can use the loan money to fulfill any of your needs as per your preferences.

What’s more, you can also get to repay the loan over a long tenor. Thus, the loan against securities is an incredible source to raise money and repay without hassles.

On the other hand, a personal loan is the ‘go to loan’ that many people apply in India. When people are faced with an emergency, they think of applying for the personal loan. Even the funds raised from a personal loan can be used to cover any expenses.

Nonetheless, the personal loan is an unsecured loan. It is as it is offered depending on your income, CIBIL Score, repayment capacity and lender’s policies. Most banks and non-banking finance companies can let you borrow up to Rs.25 lakh. The drawback of the personal loan is the higher interest rate and shorter tenor of 1-5 years.

Therefore, you may find it tough to manage and repay the personal loan. If you are not prepared for it, it can cough up a significant portion of your monthly income. It is because you may need to pay a higher EMI over a smaller tenor.

Thus, when it comes to the selection of the loan against securities and personal loan, the loan against securities seems to be a perfect fit. Here are some quick reasons to help you out.

  • The loan amount

If you need a large amount of money to cover bigger needs, then it is worth considering applying for the loan against securities. On the other hand, if you don’t need a large amount of money and can pay off fast, a personal loan can help.

  • The loan approval

The approval for the personal loan is quick as it depends on factors concerning CIBIL Score, repayment capacity and income. The loan against securities approval may also be quick as the lender would need to check the value of your investment.

  • The eligibility parameters

For loan against securities eligibility, it is offered against the investments in shares, mutual funds, bonds and other ones. Still, many lenders want that the worth of your investment is at least Rs.10 lakh to approve your loan application. For personal loans, it depends on your income, CIBIL Score and past repayment track record.

  • Added features

You can track the loan details for both options online via the digital customer portals of the lenders 24/7. Some lenders also appoint a dedicated Relationship Manager. They help you resolve all queries concerning the loan against securities account.

You may apply either for the loan against securities or personal loan as per your needs, repayment capacity and other factors.

Lucia Adams

By Lucia Adams
who is a professional writer and blogger.

Member since May, 2018
View all the articles of Lucia Adams.

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