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Buying a House


Every business requires funding from time to time. Whether to upgrade operations or purchase new premises, business loans help corporates take a higher leap towards progress. Whether your business is small or large, you may require an inflow of funds to take your operations to the next stage of success. However, you could consider putting your securities in the capital market to use. Instead of monetising your investments in securities, why not take a Loan Against Shares (LAS) also known as Loan Against Securities or a Line of Credit (LOC) and leverage your investments.

How does Loan Against Shares work?

The Loan Against Shares is a term loan against equity shares you own. It helps you gain the financial flexibility that you need without disrupting your long-term investment strategy. In terms of your fiscal position, Loan Against Securities is a ​better option to explore instead of bringing your investments in other securities like property and gold in the ambit of loans – the shares you own can generate loans for your business.

How does Line of Credit (LOC) work?

LOC (Line of Credit) is an overdraft facility against your marketable securities. You can draw on this line of credit at any time, but you cannot exceed the maximum limit set by us. The advantage of LOC is that you pay interest only for the actual time period when your business finance is used.

Why do you need LAS or LOC?​

If you are a business owner requiring immediate funds, LAS or LOC is the most appropriate financing solution for you. Businesses with expansion plans, or those requiring funds to procure additional manpower, machinery and tech expertise to scale operations should consider Loan Against Securities. Additionally, salaried individuals in need of immediate liquidity may also opt for this financing solution. Loan Against Securities may also be taken for personal reasons as well – consider it in lieu of loan for marriage or for your child's education. An advantage to note is that as long as you hold sufficient eligible securities to use as collateral, this type of credit line may be easier to obtain and it is more cost-effective than other alternatives.

Features of L​oan Against Shares/Line of Credit
  • You do not need to sell your stocks. You simply pledge them to Institute for up to 365 days.

  • There is immediate liquidity pending scrutiny of shares.

  • We offer a minimum loan amount of Rs 25 lakh

  • The bonuses and dividends on the pledged shares will continue to accrue to you during the loan period.

  • You can renew the corporate loans at your discretion.

  • You do not require a guarantor to avail of Loan Against Shares.

  • These loans typically attract lower interest rates than other forms of credit.

  • There are no set-up, non-use, or cancellation fees.

So what next?
  • If you own physical shares, you must dematerialise them before you proceed with the LAS/LOC application.

  • Ask us for our list of approved shares at the time of making the loan application.

  • Do you want complete product details? Download the brochure.

  • If you want to apply for LAS/LOC.

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