3 things to keep in mind before taking a Loan Against Securities
If you’re an avid stock market investor in dire need of money, then taking a loan against shares may prove to be your best course of action. Pledging a house or gold to obtain a loan is not always possible; that’s when a loan against securities (LAS) comes into the picture.
However, like every other form of credit, you need the right documentation to obtain a loan against securities. You may already be wondering about things lenders will ask before taking loan against shares.
Below are some of the prerequisites in the loan approval process.
The Basic Eligibility Criteria
In order to obtain a Loan Against Securities from financial companies like Bajaj Finserv in India, you need to be a citizen of the country. Your age is also a deciding factor in the loan approval process; you need to be at least 25 years old when the loan is sanctioned. Your loan against securities eligibility also depends on your monthly income. It’s essential to have a regular source of income, regardless of whether you’re a salaried individual or a self-employed one.
Bajaj Finserv will offer Loan Against Securities to you, if the minimum value of your securities is at least INR 25 lakh and if you reside in any of the 17 major cities mentioned on their website, including Bangalore, Chennai, Hyderabad, Mumbai, Delhi and Kolkata.
Keep Your Proof in Order
The first document that you need to get your hands on is the application form, which makes for the first step in the loan approval process. At this time of the loan against shares process, you’ll also need to submit your identity and address proof. The signature proof and date-of-birth proof are some of the other documents that you’ll be asked for.
Whip up Your Financial Records
If you’re a salaried professional, then loan providers like Bajaj Finserv will ask for the details of your income, including your latest pay-slip and your Demat statement for the last 6 months. However, if you’re a self-employed individual or representing a company, then the process slightly differs. Instead of your income details, you’ll need to present your balance sheet, income tax returns and P&L account statement for the last 2 years.
When you apply for loan against security at Bajaj Finserv, you also have to provide your bank account statement for the last 3 months. Remember that these may not be the only documents required for loan against security; additional records may be asked for as well during the loan processing, depending upon your qualifications.
At INR 15 crore, Bajaj Finserv offers one of the highest loan amounts in India to both salaried and self-employed individuals. Companies and firms are eligible for a loan amount of up to INR 10 crore. At Bajaj Finserv, you also have the flexibility to swap your pledged securities according to your need.
With the right qualifications, it’s pretty easy to obtain a loan against shares in India. In fact, Bajaj Finserv takes no more than 5 minutes to approve a loan application. What’s more, if your loan is sanctioned, you’ll have the cash in your bank within a mere 72 hours.