Loan against security (LAS), it must be understood, is one of the most prevalent loan varieties. A secured loan, LAS is given against a pledge of security which can be insurance policy, mutual funds, National Savings Certificate etc. In fact, loan against security can be availed against the following security types:

  • Insurance Policies
  • Non-Convertible Debentures
  • NABARD Bonds
  • UTI Bonds
  • Mutual Fund Units
  • Demat Shares
  • National Savings Certificate or Kisan Vikas Patra (KVP), though these are accepted in demat forms only.

Loan against security helps the applicant in arranging timely finance without him requiring to sell of his securities in haste. How much of assistance does an applicant receives depends upon the security that he might have pledged. Normally a current account is opened in the borrower’s name and the rate of interest is reached at by calculating the amount that the borrower withdraws during the period of utilisation.      

Important Features To Know About Loan Against Security

Loan against security is a secured loan variety as the bonds or shares are pledged as collaterals. Normally the tenure here is one year which can be renewed if the need arises. The loan amount depends on the type of security that is offered. If the applicant wants to prepay his LAS loan then he can do so without any prepayment charge.

Who Can Avail Loan Against Securities?

Each lender has its own set of preferences about whom he would be giving the lone to. However, most of the lenders prefer that the applicant is 21 years of age at the time he applies for the loan. Lenders in most cases also give loans to both salaried as well as self-employed individuals.  Organisations that have been in existence for minimum two years and that hold eligible securities can also avail loan against security.

Securities that are mostly accepted by the lenders include

  • Equity/ Demat Shares
  • Non Convertible
  • Debentures
  • Mutual Fund Units
  • Bonds and Government Schemes

If you are a salaried employee then you need to submit the following documents for availing Loan Against Securities:

  • PAN Card
  • Aadhaar Card
  • Identity Proof (birth certificate, 10th mark sheet, passport, etc.)
  • Address Proof (birth certificate, passport, etc.)
  • Income Proof (Salary slips)
  • ITR Returns filed for last 2-3 years
  • Passport size photographs
  • Bank statements for last 6 months
  • Cancelled cheque
  • Investment holding proof
  • Demat Account statements

If you are a self employed individual then you need to submit the following documents for availing Loan Against Securities:

  • PAN Card
  • Aadhaar Card
  • Identity proof (birth certificate, 10th mark sheet, passport, etc.)
  • Address proof (birth certificate, passport, etc.)
  • Income proof (Salary slips)
  • ITR Returns filed for last 2-3 years
  • Passport size photographs
  • Bank statements for last 6 months
  • Cancelled cheque
  • Investment holding proof
  • Demat account statements
  • Balance Sheet and P/L Statements for the last 2-3 years
  • Office address proof

Apply For Loan Against Securities Through IndiakaLoan.Com

There are many companies that offer loan against securities. However, it would not be possible for any individual to go through their offers and settle for the one that best supports his interest. It is here that IndiakaLoan.com comes into play and searches the best lender for its client through its vast network of 40+ banks and NBFCs.

Some of the other advantages that IndiakaLoan.com brings for its clients include

Relationship Manager

A dedicated relationship manager is available 24 hrs. at Indiakaloan.com who helps the applicants with all their requirements.

Nil Part Payment/Foreclosure Charges

Nil part payment and foreclosure allows the applicant to make loan repayment as per his ease and convenience.

Online Access

This gives the applicant an opportunity to manage his loan account from anywhere.

The above account clearly brings to fore the value of loan against security, who can avail it, as well as the documents required to avail it. IndiakaLoan.com help its clients avail loan against securities from the best of lenders in the country through its vast network of 40+ banks and NBFCs.