Loans Against Shares Or Mutual Funds
Shares held in a company and mutual funds can prove to be beneficial in more ways than one. If you are faced with a sudden need for money and you are not willing to sell off your shares (or sell your mutual fund policies), Vinayak Associate provides you with loans against these entities.
What Are Loans Against Shares Or Mutual Funds
This is a financial product we provide that allows you to secure a loan on behalf of the shares/mutual funds held by you or your immediate relatives. This is a secured loan that you can avail of by providing your shares/mutual funds in the form of collateral.
This is an ideal option for securing finance during unforeseen circumstances and financial emergencies by liquidating your investments but not losing rights on them. Although your shares or mutual funds will be blocked by us, they will remain in your name and you will keep receiving benefits on the same.
How Do Loans Against Shares Or Mutual Funds Work?
Obtaining loans against shares/mutual funds works in a way that is similar to a bank overdraft. You are provided with a specific credit limit within which you can withdraw funds as and when you need it. The interest will be charged only on the amount withdrawn over the pre-decided period of time.
When you approach us and define your requirements, we check your eligibility by focusing on the following factors:
These factors help us determine the credit limit provided to you, the interest charged, and the term of the credit provided to you. Once your eligibility is confirmed, you would need to submit the following documents for getting your application processed:
If you own a business and are looking for a loan against shares/mutual funds, you will need to submit:
Moreover, you will need to ask your DP for creating a pledge in the pledge request form with your share details and submit the same to us.
Once all the formalities are completed and all documents are submitted, we will process your application and provide you with your credit line as early as possible.
- Your age
- Your employment/business type
- Your monthly revenue
- Market value of your shares
- History of defaulting
- Credit score
- Personal ID proof
- Address Proof
- Details about your guarantor (if any)
- Latest holding statement from the Depository Participant
- Bank statements for the last 6 months
- Memorandum of Association (MOA) or Articles of Association (AOA)
- List of company directors
- Shareholding pattern
- Board resolution
- Company bank statement for the last 6 months
- Address proof for the company and ID of the director
The meaning of a car loan is pretty self-explanatory.
Address proof for the company and ID of the director
If you are willing to avail of a loan against mutual funds, you will need to fill a lien marking form and provide details like your folio number, scheme plan, name, option, and the number of units. Once these details are submitted, the same is sent to the mutual fund registrar for marking of lien.
Benefits Of Obtaining Loan Against Shares/Mutual Funds
Ongoing Benefits
When you pledge your shares or mutual funds acting as collateral, you do retain their ownership and keep receiving benefits like dividends, bonuses, and other rights.
Interest On Amount Withdrawn
Like a line of credit, you are charged interest only on the amount withdrawn out of your credit limit and not the entire credit granted to you.
No Restrictions On Use
The loan sanctioned against shares/mutual funds can be used according to your convenience for a variety of purposes without any restrictions imposed by the lender.
No Pre-payment Charges
If you are willing to repay the loan before the term ends, you will not be charged for the early repayment.
If you have further queries pertaining to our services or want to approach us for getting your eligibility checked, we are more than happy to engage with you. Contact our executives today to find a plausible solution to your financial requirements.
