Apply Loan Against Demat Equities Online With Trusted Agents
The financial product Loan Against Shares allows borrowers to secure funds through the stock market shares they currently own. People who require immediate funding without giving up their shareholding find Loan Against Shares to be their preferred solution. You can promise your shares to lenders to receive a loan representing their evaluated market value. Retaining your share ownership becomes possible through this option since you maintain control of your investments while accessing the required cash flows. A stock portfolio with diverse assets makes this loan choice suitable when market instability puts asset value at risk. The loan amount typically depends on the value of the shares, and you can access up to 50-75% of the market value of your pledged stocks.
Finmarra offers individualized advice for people who want to obtain a loan against shares. We collaborate with numerous trusted lenders to give you access to the most advantageous loan terms, which depend on the worth of your shares, together with your funding requirements. Loans against stock values are usually based on what market analysts appraise the securities to be and what their current market price is. Through our expert assistance, you can transform your shares into financial freedom, which allows you to carry out urgent transactions alongside pursuing different investment opportunities.
Loan Against Shares Meaning & How This Loan Option Works
You can use your stocks along with equity investments as collateral to obtain a loan through Loan Against Shares. When sharing your stocks as collateral, the financial institution provides loans against their current market value assessment. People can obtain a percentage-based loan from the value of their stock shares through this scheme, which produces lower interest rates than traditional unsecured loans. People who need financial liquidity without losing their investment portfolios should consider this excellent approach.
Why a Loan Against stocks is the Smart Way to Raise Funds
Quick Access To Funds
You can get funds faster than most traditional loans. Since the loan is backed by your shares, the approval and disbursement process becomes quick. Lenders do not need long checks like in unsecured loans. This helps when you need urgent money for personal or business needs.
No Need To Sell Your Shares
You can keep full ownership of your shares. The loan does not require you to sell any stock. So you continue to enjoy dividends and stay invested. If the share value increases over time, you also benefit from capital growth.
Lower Interest Rates
Since this is a secured loan, the interest rates are lower than most personal loans. Lenders take less risk when shares are pledged. So you save money on interest while getting large funds for your needs.
High Loan Amount
You can get up to seventy to seventy-five percent of the share value as a loan. This gives you access to high funds based on the worth of your portfolio.
Flexible Repayment Options
Most lenders offer easy repayment plans. You can choose between paying only the interest every month and repaying the full loan at the end or paying regular EMIs with interest and principal.
Who Should Opt for a Loan Against Shares for Quick Funds
Loan Against Shares is not for everyone. It works best for people who hold a good stock portfolio and want fast funds without losing their investments.
Investors With Large Shareholding Portfolios
If you have a strong equity portfolio, you can use it to meet urgent fund needs without selling your shares. This keeps your investments safe and active.
Business Owners Or Professionals With Investment Income
If you earn from both business and investments, this loan can support your short-term capital needs without disturbing your financial plan.
Salaried People With Long-Term Share Investments
Even if you are a salaried person, if you have built a good stock portfolio over time, this loan helps you use it smartly for medical needs, home repairs, or education fees.
Anyone Who Wants To Avoid Selling Assets
If you want money but do not want to sell your shares due to market conditions or future value, this loan gives you the needed funds while keeping your portfolio untouched.
Reasons to Choose Finmarra for Loan Against Shares in Chennai
Competitive Interest Rates
As your loan is secured, Finmarra offers low interest rates on loans against securities, saving you money on repayments.
Transparent Evaluation
Our experts evaluate your shareholding clearly, making the loan against demat shares process smooth, fair, and stress-free for you.
Retain Share Ownership
You do not have to sell your shares. Finmarra helps you use them to borrow while keeping your portfolio intact.
Support for Multiple Securities
You can avail yourself of loans against shares, mutual funds, or bonds. We accept a wide range of listed financial securities as collateral.
Ready to Secure a Loan Against Your Shares? Get Started Today!
Whether you need quick funding or want to leverage your shareholding portfolio, Finmarra offers a seamless process for Loan Against Shares. Our expert team ensures you get the best terms, faster approval, and competitive interest rates. Reach out to us today to unlock the value of your shares without selling them.
Eligibility Criteria for Loan Against Shares You Should Know
Minimum Number Of Shares Required
You need to hold a minimum value of shares. This value may vary from one lender to another. Most lenders ask for a share portfolio worth at least one lakh or more to process a loan.
Types Of Shares/Stock Eligible
Only listed shares are allowed for loans. These must be traded regularly on stock exchanges like the NSE or BSE. Some lenders also accept mutual funds, bonds, or ETFs, but only if they are approved on the lender’s list.
Credit Score And Income Requirements
While the loan is secured, a decent credit score helps you get better terms. Lenders usually expect a credit score of six fifty or higher. Also, stable income from a job or business adds to your chances of approval. It shows your ability to repay the loan on time.
Documents Required for Loan Against Shares Made Easy
Shareholding Proof
You must share your latest Demat account statement. This shows the shares you hold, their current value, and your ownership.
Kyc Documents
Basic identity and address proof are needed. This includes Aadhaar, PAN, Passport, or Voter ID. You must also give one recent photograph.
Income Proof
For salaried people, this includes salary slips from the last three months and bank statements. For self-employed people, lenders ask for recent tax returns and business income proofs.
Common Questions About Loan Against Shares & Their Answers
- Market Value May Drop: The value of your shares can go down, and if the prices fall significantly, you may face a margin shortfall (when the value of your shares is less than the loan amount). We make sure you understand the risks before you apply and help you monitor your investments closely.
- Chance of Margin Call: If your share values drop, the lender may ask you to provide more shares or repay part of the loan. Our experts work with you to manage the risk of a margin call and guide you on how to avoid it.
- Possibility of Losing Shares: If the loan is not repaid on time, the lender may sell your pledged shares, and you may lose your investments. We provide flexible repayment plans and proactive support to help you meet your repayment obligations and avoid losing your assets.
- Limited Loan Amount: The loan amount is dependent on the market performance and liquidity of your shares, so it may be lower than expected. Finmarra helps you choose the right shares with higher liquidity and value so you get the best possible loan amount.
