Whenever you face an emergency, it may become difficult to arrange funds. It is if you don’t have any other option. You may find it tough to know if deciding on whether or not to raise funds or liquidate assets.
During such times, a unique funding option in the form of the loan against bond can help you cover all expenses easily. You get to access a large amount of money at a lower rate of interest.
If you need some urgent money and have invested in bonds, let us help you know more about the loan against bonds facility.
What is the loan against bonds?
As the name suggests that the loan is available against bonds, you only need to pledge your invested security or bonds to borrow some money. Since the loan is offered after keeping your bonds as the collateral, the rate of interest is affordable.
Why applying for the loan against bonds work?
Compared to other instant funding alternatives such as personal loans and credit cards having a higher rate, it is better to go for the loan against bond. It is because the loan against bond is available at a lower rate than the discussed options. As a result, you can manage and repay the loan without hurting your monthly finances.
What are the benefits of applying for the loan against bond?
A loan against bond facility comes with a slew of advantages other than offering you a considerable amount of money.
- Higher loan value
The loan against bond lets you borrow as high as up to Rs.10 crore at affordable rates. With such a higher loan amount at your disposal, you can easily use it to fund your diverse needs. Some of the common things that you can do with the loan amount are managing wedding and medical expenses, and other personal needs. Thus, when you face a need for a large amount, you won’t need to apply for multiple loans. The loan against bond will be enough to help you get the required amount.
- Dedicated Relationship Manager
Banks and other reputed lenders appoint a dedicated Relationship Manager for customers. They are to help all customers resolve their loan queries after connecting with them 24/7.
- Zero prepayment and foreclosure charges
If you wish to make some prepayments or foreclose the loan amount before the end of the tenor, you can do that without paying any additional charges.
- Online account access
You can also track the progress of your loan after accessing the loan details via the digital customer portals of the lenders. The facility is available 24/7, and you can track it right from anywhere.
What are the eligibility terms for applying for the loan?
- The loan applicant needs to be a citizen of India
- Your age should be at least 21 years on the day of applying for the loan
- You should either be salaried or self-employed with a regular income source
- The minimum value of your bonds should be at least Rs.35 lakh to become eligible for the loan against bond.
You are now well aware of some of the basic information about the loan against bond facility. It is surely a useful funding option compared to other alternatives owing to lower interest rates. Hence, it could be easier for the borrower to manage and repay without hassles.