A Quick Guide on Loan against Securities

With time traditional bank loans have become costly therefore, the lenders are coming up with new options to allow meeting intermediate cash flow requirements of customers. A loan against shares is one such facility that is provided by banks and NBFCs against certain securities owned either by the borrower’s relatives or the borrower himself. For instance, if you are provided with a loan against securities of worth Rs. 2 lakhs and in case, you withdraw Rs. 50,000 and deposit the money back into account within a month. In that situation, you will be charged interest for just one month on Rs. 50,000.

Some of the steps to be followed are mentioned below:

In order to avail loan against shares, all you got to do is fill the application form with

personal details of the borrower and of securities to be undertaken.
The documents required for the loan against securities are identity proof, address proof,

signature proof, IT returns of concerned company/proprietorship/partnership firm,

audited balance sheet and Profit & Loss account for the previous two years.
In order to be eligible for this particular loan, the applicant either has to be Indian resident,

NRI or owner of a private trust, partnership firm, sole proprietorship, and private limited or public limited company.

Comments

Things to Keep in Mind before Applying for Home Loan

Whether it is about buying a home, already owning one, thinking of moving house or just getting a second real estate property, a home loan is the perfect solution for all the problems. A home loan is a long term commitment. Before applying for the home loan process, it is important to analyze your total eligibility, which mainly depends on your repayment capacity. Ensure that the home you are buying also meets a certain criterion. Here are a few things buyers need to check before applying for a home loan : Information The foremost thing to keep in mind is the location of the property you are planning to purchase. Buyers need to understand whether the property they are buying is good enough, the builder has a good record in terms of successful delivery or the builder has all the needed permissions. Home Loan Interest Rate Before applying for a home loan, it is essential to compare the home loan rate of interest of at least 4-5 banks. Always opt for the cheaper one ...

What are the Benefits of Unsecured Business Loan?

Whether it is a big firm or small, the success of the business is always determined by the soundness of its financial status. Thus, it becomes imperative for business owners to arrange enough finance to meet numerous daily and unplanned expenditure of their business. In the competitive market, one can require funds anytime and delay in arranging funds can hamper the work. In such a situation, it is better to manage desired finance with the help of unsecured business loan as it can be availed with no collateral and easy documentation. With so many banks/NBFCs offering unsecured business loan at lower interest rates, it becomes tough to select anyone. It is here that IndiakaLoan comes into the picture as it is one of the most preferred collateral-free unsecured business loan providers. Some of the benefits you can avail from IndiakaLoan offerings: It provides loan for every type of enterprise venture with cash credit limit ranging from Rs 10-40 lakhs to support busi...

Infomerics Rating Criteria and Methodology | Credit Rating Process

Infomerics Ratings seeks to continuously improve its ratings criteria and methodologies, and periodically updates the descriptions on this web site of its criteria and methodologies for securities of a given type. All published criteria reports, available on its website, are reviewed and approved prior to use by a Review Committee at least once in three years and proposals to amend criteria between reviews are required to be approved by Committee. Infomerics rating criteria for non-financial sectors Growth ratios like growth in revenue, profit after tax and earning before tax Profitability ratios comprises EBIDTA Margin, PAT Margin, ROCE etc. Leverage and coverage ratios Liquidity ratios i.e. current and quick ratio Turnover ratios The primary focus of the rating exercise is to assess future cash generation capability of the company and its adequacy to meet debt obligations, even in adverse conditions. Rating determination is a matter of experienced and holistic judgment, ...

Finance and Investment

Search This Blog