Tuesday, April 23, 2024

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    The Power of Loan Against Securities: Examining the Benefits and Drawbacks

    Financial Services distribution companies like Rurash Financials are revolutionising the way financial services are rendered and simplified for the end user. Loan Against Shares or Overdraft against securities for business owners is one such area where Rurash Financials facilitates the loan against shares from the most trusted lenders in an informed manner. One such powerful solution they provide is the loan against securities (LAS). This unique financial instrument allows individuals to leverage their equity shares, mutual fund investments, fixed maturity plans (FMPs), insurance policies, or bonds to access instant funding with low-interest rates. In this article, we will explore the benefits and drawbacks of loan against securities, shedding light on its potential to provide quick and secured financing for a range of personal and business financial needs.

    Benefits of Loan Against Securities

    • Quick and Secured Financing: Rurash Financials understands the importance of quick access to funds especially for the business owners. With their loan against securities facility, individuals can receive financing ranging from Rs 10 lacs to 100 Crores, providing ample funding options to meet diverse requirements. By pledging eligible securities, borrowers can secure the loan quickly and efficiently where the designated loan officer will take the process of approvals and collateral assessment.
    • Low-Interest Rates: Rurash Financials brings affordable borrowing for individuals. The loan against securities option offers competitive interest rates, with rates as low as 9%. By leveraging the value of their investments, borrowers can enjoy the benefit of lower interest charges compared to traditional loans. This can significantly reduce the overall cost of borrowing and make it an attractive financing solution.
    • Flexible Loan Utilization: Borrowers have the freedom to utilize the funds from a loan against securities for various purposes. Whether it’s for personal expenses, business investments, education, medical emergencies, or debt consolidation, Rurash Financials allows individuals to choose how they use the funds. This flexibility ensures that borrowers can address their specific financial needs with ease.
    • Easy Application and Instant Processing: Rurash Financials simplifies the borrowing process through a user-friendly online application system. With a dedicated loan officer to guide borrowers throughout the process, applying for a loan against securities becomes hassle-free. Rurash Financials prioritizes efficiency, enabling borrowers to enjoy quick approval and instant processing, ensuring timely access to the funds they require.
    • Customized Loan Amount: Rurash Financials understands that every individual has unique financial needs. With their loan against securities facility, borrowers have the flexibility to choose the loan amount according to their requirements. Moreover, borrowers pay interest only on the utilized loan amount and not on the approved amount, allowing for cost-effective borrowing.

    Drawbacks of Loan Against Securities

    • Risk of Collateral Liquidation: While loan against securities provides quick and convenient financing, borrowers must be aware of the risk associated with collateral liquidation. In the event of default on loan repayment, the lender has the right to liquidate the pledged securities to recover their dues. Borrowers should carefully assess their repayment capabilities to ensure timely repayment and avoid potential loss of their investments.
    • Market Value Fluctuations: The value of securities can be subject to market fluctuations. If the market value of the pledged securities falls significantly, borrowers may need to provide additional collateral or repay a portion of the loan to maintain the required loan-to-value ratio. It’s important for borrowers to consider the potential impact of market volatility on their loan against securities.


    Loan against securities is a powerful medium that provides individuals with quick and secured financing options. With low-interest rates, flexible loan utilization, easy application and processing, and a customized loan amount, borrowers can address their diverse financial needs conveniently. However, borrowers should be aware of the risks associated with collateral liquidation and market value fluctuations. By understanding these benefits and drawbacks, individuals can make informed decisions and leverage the power of loan against securities to meet their financial goals effectively.

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