How Loan Against Shares Is Beneficial

Loan against shares has slowly yet surely gained its place in the financial market. With the course of time, this kind of secured loan has started being considered as a wise financial instrument for people. It is especially useful when you are hit by a sudden and unexpected monetary requirement. Taking personal loan for emergency funds has become a natural and most popular financial tool for people. However, if you have invested in shares in past and you own a set of shares at the existing time, you can very well capitalize on it.

Let’s say you have come across an important financial requirement and it is getting uncomfortable to adjust the expense in your regular budget. You start considering the option of taking some money as loan from a bank or private company. Researching what kind of loan you should take and which schemes have better features and benefits is surely a tedious and time consuming task. Even more draining is the process of deciding which loan program will be better for your requirement. There is absolutely no dearth of good loan schemes in the market today. However, there is also no dearth of money swindlers laying out unscrupulous deals and plans to milk money out of you. Therefore, if you are a shareholder, know that you have a very important asset to your credit- your shares.

Taking loan against shares has multiple benefits. Firstly, you can get access to liquid cash as and when you require. You do not have to pledge your gold jewelry or a piece of property for the same. And this is such a welcome relief. Usually people have emotional value attached to these kinds of assets and they consider these assets beyond the materialistic value. In such a case, borrowing a loan against your shares is highly recommended.

Secondly, the processing of the loan is quite prompt and does not involve much hassle. If you are the one who is simply tired of the tedious banking procedure and endless documentation, this would come as a soothing experience. However, you must have your basic information and documents ready, like a copy of your driving license, election card, pan card and similar others. The bank or the financial lender usually explains clearly what documents you need to submit. So, get them ready before hand.

The time taken in loan disbursement process is relatively less. So, if you have been struck by a financial emergency and do not have much time to give other lenders, apply for loan against shares. You will get instant cash in less time, with less documentation and short procedure.

Loan against property has its interest rates set in a different parameter. The bank or the financial lender does no charge you interest as in other kinds of loan. There are certain limits which are sanctioned by the bank and the interest is charged only if you use the limit, for whatever number of days. This reduced financial pressure makes the repayment of this kind of loan easier.