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People utilize their savings for purchasing properties and financial instruments such as shares, fixed deposits, and gold. They are mainly bought from an investment point of view. But when it comes to funding other financial emergencies and needs, people opt to take a personal loan.
In fact, there are many types of financial instruments against loans that could be acquired easily. In the following table we have mentioned some of the financial instruments against which you can take loans:
|
Interest Rate (p.a.) |
Loan to Value (LTV) |
|
|
Loan against Residential Property |
Ranging from 11% to 15% |
Between 60% – 75% |
|
Loan against Shares |
Ranging from 11% to 22% |
Up to 50% |
|
Loan against Gold |
Ranging from 12% to 17% |
Up to 75% |
|
Loan against Fixed Deposit |
2% – 3% higher than the fixed deposit rate |
Up to 90% |
|
Loan against Life Insurance Policy |
Ranging from 9% to 10% |
Between 85% – 90% |
Now that we know the different types of financial instruments against loans, let us know a little about them in detail.
Loan against Residential Property
You can use your residential property to take a loan. In fact, you are allowed to take a loan of 60% to 70% of the value of your property. Depending on your lender, you can choose your tenure period between 2 to 20 years. Moreover, the interest rates charged on a loan against property usually range from 11% to 15% p.a.
Loan against Shares
You can take a loan against your investment in equity shares. The interest rate charged here will be in the range of 11% – 22% p.a. However, the tenure and value of your loan amount completely depend on the bank or NBFC. Generally, you can get a loan up to 50% of the value of the shares.
Loan against Gold
Acquiring loan against your gold is a very common practice. According to the RBI guidelines, the maximum loan to value (LTV) is 75%. The tenure is usually 12 months and the interest rates charged are between 12% – 17% p.a.
Loan against Fixed Deposit
An individual can also take a loan against fixed deposit. The tenure of this loan type is the same as that of your fixed deposit with the bank. The interest rates charged are 2%-3% higher than the interest rates on your fixed deposit. The maximum LTV is 90% of the amount of the fixed deposit in your bank account.
Loan against Life Insurance Policy
If you have a life insurance policy in place, then you can take a loan against it. The maximum loan amount approved will be between 85% – 90% of the surrender value. The interest rate charged will be in the range of 9% – 10% p.a.
A Final Thought
Taking a loan against financial instruments is a very common practice. It comes in handy during any financial emergency. Be it business expansion or wedding expenses, loan against financial instruments could be easily acquired online.
With Bajaj Finserv Loan against Property from Finserv MARKETS get your loan application approved almost instantly and get the loan amount credited in your bank accounts within 24 hours. Moreover, they offer bespoke loan solutions adhering to your needs.
So, why wait? Get a Bajaj Finserv Loan against Property from Finserv MARKETS, today!
Finserv MARKETS, from the house of Bajaj Finserv is an exclusive online supermarket for all your personal and financial needs. Loans, Insurance, Investment and exclusive EMI store, all under one roof- anytime, anywhere!
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