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5 Financial Instrument against Which Loan Can Be Taken

By Finserv MARKETS - Jul 27,2019
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Financial Instrument against Which Loan Can Be Taken

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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Bajaj Finserv Direct Limited ("BFDL"), erstwhile Bajaj Financial Holdings Limited is a registered corporate agent of Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz General Insurance Company Limited under the IRDAI composite registration number CA0551 valid till 10-Apr-2021. BFDL also renders services to Bajaj Finance Limited (‘BFL’) and Bajaj Housing Finance Limited (‘BHFL’) (referred hereinafter as ‘Lending Partner’) in sourcing of customers, providing preliminary credit support activities, fulfilment services and post-acquisition customer services related to lending business. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522