Posted 21 Feb, 2019 | Finance
What is loan against security and what is the procedure to apply for it?Add Answer
Loan against security is a credit scheme which allows people to mortgage their investment securities and take a loan against it. That said, the loan amount, as in case of any other secured credit schemes, would depend on the market value of the investment security mortgaged.
For instance, if your investment security which you are mortgaging has a market value of 20 lakh, the loan amount you’ll be eligible for would vary in between Rs 14-16 lakhs. Similarly, the loan value would increase as you mortgage collateral of higher value and so on.
The procedure to apply:-
The process of availing a loan against security is pretty simple and easy to follow. Check the steps mentioned below.
- Find the right loan to apply for. There are a plethora of options available in the market. If you don’t do your research, you will end up with a debt trap. Hence, do some research and find out the most suitable credit scheme.
- Check the list of required documents. The same would be available on the lender’s website. You can check that and arrange physical and scanned copies of all the required documents in advance.
- Lastly, navigate to the online application section, fill the application form, cross-check the details, and apply. Once approved, you’ll get a confirmation call and the loan amount will be disbursed directly in your bank account.