Whenever we talk
about loans, people usually feel discouraged. It is because they believe that
acquiring a mortgage is a time-consuming process.
However, the
truth is that there are better alternatives like a loan against shares, which
are much more accessible and straightforward.
Due to the
extreme competition in the Banking and Finance industry, lenders are now coming
up with additional features. These features provide flexibility and convenience
to borrowers, who are looking to apply for a loan against shares.
On the other
hand, it has even affected the loan against
shares interest rate. To attract more customers, lenders do not
provide you with a varied degree of interest percentage. This will allow you to
shop around for the most suitable interest charges in the market.
If you want to
know about the reasons that make a loan against shares more convenient, then
here are a few points that we have put together.
1. Online process
The first thing
that makes a loan against shares one of the simplest ways of acquiring funds is
the availability of an online application. With this service, you do not have
to visit the financing firms office in person. Overall it saves you from a lot
of hassle and travelling as you can get all your work done through the official
website of the firm.
2. Personal relationship manager
Every applicant
that borrows a loan against share also receives the facility of a personal
relationship manager. It means you do not have to contact multiple people to
get your questions answered. This relationship manager will handle every detail
related to your transaction from start to finish.
3. High loan value
Another point
why a loan against share is the most convenient alternative is because it has a
high amount of value. Depending on the securities that you are willing to
pledge, you will be able to receive a high-level value easily. However, the
minimum portfolio value can depend on the organization that you are contacting.
4. Easy documentation
The
documentation for a loan is one of the most critical aspects of the entire
transaction. It usually requires a lot of time and patience to sort through all
the paperwork. But in the case of a loan against shares, you do
not have to worry about this situation. It is because most financing agencies
provide you with a natural documentation alternative. This way you will be able
to upload all your paperwork online, along with your application.
5. Variations of securities
There are
various types of securities that you can borrow a loan against. It gives you a
more flexible opportunity to generate finance for your expenses. For example,
you can take a loan against shares with IPOs, Bonds, Mutual Funds, etc. In
other words, whatever assets you might have, you will be able to generate finance
easily.
6. Nil advance payment charges
There are times
when we are capable of making advance payments on our loans. However, certain
institutes might charge you an additional sum of the amount as an advance
payment fee. It is not the case when it comes
to a loan against shares.
7. Almost instant approval
Lastly, unlike
traditional loan facilities where you had to wait for months before getting the
funds; you will be able to receive money almost instantly in this case. Since
the entire verification process is conducted online and is transparent, you can
get your loan approved within a few business days.
The Bottom Line
All the reasons
mentioned above are enough for encouraging you to invest in a loan against
shares. It is definitely a secure way of acquiring cash without having to pay
high-interest rates.