Personal loans can be quite expensive and put a lot of stress on your finances if you need it for a short period of time. Instead, if you are in need of liquidity and have been a prudent investor, consider taking on a Loan Against Securities (LAS)!
An LAS is a secured loan where financial securities are pledged as collateral to the lender to borrow money. Securities you can pledge include equity shares, mutual funds, life insurance policies, gold deposit certificates, National Savings Certificates, Kisan Vikas Patras, etc.
One can avail of loan value of around 50% to 90% of the securities that are pledged as collateral. It is available in the form of an overdraft facility and interest is charged on the amount. You can get an LAS ~8-12% which turns out to be cheaper when compared to most interest rates on a personal loan.
Would you consider an LAS? Tell us in the comments!
Source: PaisaBazaar
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