Loan Against Securities (LAS)
Best option to meet short term requirement while keeping long term goals intact
What is Loan against Securities?
Loans against Securities is a type of an overdraft facility wherein you need to pledge mutual fund units as collateral and get the loan ranging from Rs.2 lacs to 10 crores. To meet your immediate fund requirement LAS is the best option rather than selling your existing investment.
You don’t have to provide any additional security or collateral except the securities you are pledging!
How does LAS work?
Loan against Securities are typically offered as an overdraft facility wherein you draw money from the account anytime you want (up to the sanctioned amount), and you need to pay interest only on the loan amount you draw and for the period you use it.
For example, your LAS has been sanctioned for Rs. 5 lacs. Now let’s say, you draw Rs 1 lacs and after 20 days you deposited the amount back into your loan account. In this case, interest will be charged on Rs.1 lac for 20 days.
The amount of loan you are eligible for depends on the value of the securities you offer as collateral
Eligibility
In order to apply for a Loan against Securities, you must meet the following eligibility criteria:
⦁ Loan will be available in the name of Primary holder only
⦁ Applicant must be a resident citizen of India
⦁ Applicant must be in the age group of 18 to 70 years
⦁ This facilities is not available to HUF, NRIs & Minors
⦁ Loans are granted only against the list of approved Mutual Fund/scheme
Documentation
⦁ Passport size photograph
⦁ Loan agreement duly signed
⦁ NACH mandate duly signed
⦁ Self-attested Pan Card
⦁ Loan sanction letter duly signed
⦁ Pledge request letter duly signed
⦁ Cancel cheque leaf
⦁ Valid Passport
⦁ Self-attested Address Proof (Aadhaar Card OR Driving License OR Election Card)
⦁ Job Card issued by NREGA duly signed by an officer of the State Government
⦁ Letter issued by the National Population Register containing details of Name, Address of the customer
