Things to know about getting a loan against shares and securities



A loan against equity shares is a type of security that can be offered to lenders by the borrower. It is a type of secured loan where the securities, such as equity shares, are pledged as collateral. The lender can take possession of the collateral in case the borrower defaults on his payments. Lenders who provide loans against equity shares are typically banks, insurance companies, and other financial institutions. They may offer these loans in order to diversify their portfolios with more risky securities or to get higher returns than they would otherwise be able to get on their investments.

This type of loan is also known as a pledge agreement or pledge mortgage. They are an appealing option for people who are looking to leverage their portfolios. One of the most crucial things is to get loans from a trustworthy financial company like Peerless Finance.


Reasons For Investing In Loans Against Shares and Securities

When you invest in loans against equity shares from trustworthy places like Peerless Finances, you get the following benefits:


  • Low-interest rates: interest rates starting at 10% p.a.
  • Auto-Renewal: There is an auto-renewal facility available.
  • You get higher LTV: loans up to 50% of security value
  • Pre-payment Penalty: There are no pre-payment penalties, for the prepayment made at any time
  • Various Options: You get various options to pledge, ranging from mutual funds to insurance policies
  • Funding approved stocks: The benefit of securities remains with the borrower.

If you want to apply for a loan, you need to know the eligibility criteria for applying for it. Below are the criteria for the same.


Eligibility Criteria for A Loan Against Shares And Securities


  • Age: You must be above the age of 24 and below 70 years to avail of loans against shares and securities.
  • Field of Specialisation: Salaried, professionals, self-employed individuals along with other entities viz partnership, limited liability partnership.
  • Should be the Resident of India.


Documents Required For Individuals


  • Address Proof: A copy of the passport, voter identity card, or Aadhaar card can serve as proof of address.
  • Copy of the PAN Card
  • Payslip for three months (for salaried individuals)
  • Bank statement for the last six months
  • The Demat statement or Mutual Fund holding statement
  • Passport size photograph


Documents Required For Non-Individuals


  • KYC documents for the partners or directors
  • A copy of the partnership deed
  • The bank statement for six months of the firm or company
  • The Demat statement or mutual fund holding statement of the firm or company
  • The audited finances of the company in the last two years


Bottom Line

Loans against equity shares can help you meet short-term obligations. If you want to apply for a loan, you must make sure that you invest in trustworthy private finance companies in Kolkata. Peerless Finance is an excellent company that can help you get loans against shares easily. The company allows its customers to avail themselves of quick disbursals, collateral-free loans at affordable interest rates. There are flexible options for both individuals, and companies, so you can choose the best option for yourself.

Saptarshi Roy Bardhan