Do you need to take out a loan but don’t have any physical assets to offer as security? That’s where digital loans against securities come in. In such cases, a lender such as Abhi Loans offers you the money you need in exchange for your mutual funds or other digital assets as a guarantee.
These loans are hassle-free and convenient, allowing you to borrow loans even from the comfort of your home without losing your hard-earned investments. To expound more on just what loans against securities have to offer, here are some essential benefits that make them one of the best loan schemes in India.
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Benefits of applying for a digital loan against securities:
- Quick disbursal of funds
If you need a loan fast to take care of a quick medical emergency on a 24-hour deadline, for example, it’s no good if the loan you apply for arrives 2 weeks later, which happens quite regularly with many Indian banks.
By that time, admission charges have risen by the day, increasing your total drastically. For those who do offer same-day disbursal, then that usually comes at a much larger than the normal interest rate.
Abhi Loans turns the tide to solve these problems by offering you a loan against securities at cheap rates and with a lightning-quick 24 disbursal period. This is made possible by a simple, fully-digital 4-step process that entails:
- Applying for a loan on www.abhiloans.com
- Filling in your KYC
- Using CAMSx to mark a lien on your MF units
- Signing an E-sign agreement to receive your money
So if you have emergencies or needs that are time-sensitive, you should consider Abhi Loan’s quick loans against securities.
- Lower interest rates on the loans
With the economic situation in the country hard enough as it is, it truly hurts to have to pay skyrocketing interest rates which can sometimes reach as high as 24% with some lenders. Factor in drastic lateness fees imposed by unscrupulous lenders, and this can sometimes make personal loans feel like they’re not worth the trouble as you can pay up to double your principal.
However, all you need to do is choose your lenders wisely. Abhi Loans, for instance, avails instant options for a quick loan against securities at cheap rates, ranking as one of the lowest in the market. The interest charts encompass:
- 11% to 16%
You’ll be hard placed to find any other digital loan against securities lenders that can match let alone beat these rates.
- Setting your own loan limits
Many banks and some NBFCs set loan limits to cap the borrowing threshold at a certain minimum value. So you’ll find that you’re obligated to borrow a higher loan amount than you really need in some cases, simply because your loan provider doesn’t offer a lower loan amount and thus you are left with no other choice.
On the flip side, some lenders set a maximum loan limit, typically dependent on your credit profile and how much of a high risk they deem you to be. This financial ceiling caps how much money you can borrow from them, resulting in you having to resort to multiple lenders to raise enough cash for your needs.
That’s no longer the case with lenders such as Abhi Loans, who offer loans against marketable securities that are flexible as ever in terms of the amount you’d like to borrow. You have complete control over your principal, and can:
- Borrow as low as Rs 15,000 to cushion personal emergences
- Borrow as much as 10 lakhs, which makes for an excellent option for quick capital against securities to start your new business
- Borrow any amount in between
What’s more, there’s room to borrow even higher as Abhi Loans welcomes personal requests from clients who’d like to take larger loan amounts.
- No pre-payment penalties
It’s the cold, hard truth. Banks and many other lenders don’t like it when you pay off your loan early. They’d like to keep charging you high interests over a longer-term so that they can keep squeezing money off of you for as long as they can.
It is for this reason that such financial institutions often impose a heavy prepayment penalty to dissuade early loan repayment. In most cases, the prepayment penalty you’ll have to pay is on average 2% of your borrowed principal.
On other hand, Abhi Loans offers you a quick loan against shares and mutual funds with no pre-payment penalties whatsoever. This ensures you:
- Don’t get penalized for clearing your loan early
- Can pay off your loan at your own pace without any worry
- Pay back your loans quicker to free up room for a bigger loan
So if you’d like to pay off your loan ahead of schedule for whatever reason, you can do so without having to worry about financial repercussions in the way of pre-payment charges.
- High loan to collateral value
Several digital loan providers in India are quite predatory in their terms and like to take advantage of loan seekers by imposing unreasonable collateral. It’s quite often the case that many borrowers seeking a loan against mutual funds have to offer collateral whose market value far exceeds the money the borrower gets in return.
The result is a low loan to collateral value, where you stand far more to lose than there is to gain. Fortunately, lenders such as Abhi Loans watch out for customers and consequently accept just a reasonable amount of mutual fund units in exchange for an almost similar value loan size.
You can breathe easier because of the resulting high loan to collateral value, which aside from guaranteeing peace of mind also goes to assure the lender’s integrity. This high loan to collateral value is further enhanced by lower interest rates which give customers more bang for their buck when they take a loan against securities.
A digital loan against securities has many benefits when you turn to the right lender. You get to pay lower interests, benefit from an exceptional deal with a high loan to collateral value, and enjoy flexibility in principal amounts. Moreover, there are no prepayment penalties hanging over your head and you get your money quickly disturbed to you in just 24 hours. The best part: you can apply from home for quick loan processing in a fully digital process with no manual runarounds. Sounds good? Then call Abhi Loans today.