LAS is also known as Loan Against Shares or Securities. As per the Indian banking system, it is always important to have the security to raise funds. The higher the security the better the possibility. Of course, business cash flow is one of the important parts of the consideration.
When it comes to security, financial institutions will consider security which includes – Fixed assets, Gold, bonds, Shares, Mutual Funds, Fixed deposits etc. Under LAS, Financial Institutions consider Bonds, Shares, and Mutual Funds as security to arrange debt funding security.
Loan Secured by Shares
Loan up to 50% of the Market Value of Shares
Lower Interest Rates
Tenure is up to 60 Months
End-to-end Execution
Many objectives can be achieved with a loan against shares. Some of these objectives include:
To avail loan against shares facility, you need to have a demat account and shares in your name. Provide the lender with the following documents:
This is one of the liquid tradable securities. And does not require much due diligence. So the turnaround time to raise the funds will be of 5-6 working days.
There is no specific consideration for the interest rate. It will be regular and based on the repo rate.
The loan-to-value ratio depends on the rating of the security. It starts with 40% and may go up to Rs. 90% of the market value.
At Terkar Capital, we understand the importance of providing financial solutions that meet your business’s needs. That’s why we facilitate a financial product namely Loan Against Shares or Securities (LAS facility). It is categorised under secured debt instruments. So, let’s explore!!
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