Shares to the Rescue: How a Loan against Security will help you in a financial emergency!

You are a smart investor, where you have, over the years, picked good stocks and mutual funds and built up a good portfolio for the long-term. You are investing for the future – for your children’s education, to buy a home or to retire comfortably. Whatever the reason, you are in no hurry to liquidate your investments.

But suddenly you have an emergency need for money. Your contingency fund is not enough to meet the immediate expenses. You consider liquidating some of your investments. Then someone suggests a solution: Loan Against Securities. And you heave a sigh of relief.

What is a Loan Against Securities?

  • It’s a loan where you borrow money by pledging your investments such as insurance, shares, mutual funds and life insurance policies as collateral.
  • It allows you to get emergency funds quickly without liquidating your long-term investments
  • One of the best features of HDFC Bank’s Loan Against Security is that you get the funds as an overdraft. This means you need to pay interest only on the funds that you draw and for the period that you use it. What’s more, the interest rates on our Loan Against Securities are extremely competitive.

How can I get a Loan Against Security?

You can get a Loan Against Security easily through HDFC Bank if:

  • You are an existing HDFC Bank customer with a current, savings or demat account
  • You hold equity or equity mutual funds in demat form with mode of demat operation as single holder
  • You have HDFC Bank-approved scrips of Rs 2 lakh and above

You can also get a HDFC Bank Digital Loan Against Security in just 3 easy steps:

  •  Login to NetBanking and select equity shares and equity mutual funds that you want to pledge
  • Accept the Terms of Agreement and authenticate the same via OTP
  • Pledge equity shares and equity mutual funds online

You must have HDFC Bank approved shares whose current market value is over Rs 2 lakh

You can get a minimum of Rs 1 lakh and a maximum of Rs 20 lakh in under 3 minutes without any physical documentation. You can choose the equity shares and funds you want to pledge from your portfolio, and even change it later. 

So, next time you need emergency funds, leave your long-term investments intact and opt for a Loan Against Security. 

Looking to apply for loan against shares? Click here

* Terms & conditions apply. Loan disbursal at sole discretion of HDFC Bank Ltd

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