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Loan Against Security- Select The Bank

About Loan Against Security

Loan against security is a nice way of generating finances when you are in dire straits and in desperate need of funds. In this note, we will look at this type of loan and also have a brief discussion of some important providers, like HDFC loan against security or the loan against security SBI offerings. There is more description on the loan providers at other pages of Money Super Bazaar.

As is apparent by the name, loan against security means the loan you take from the banks of other financers by depositing some approved valuables as the collateral. The collateral could be in the form of shares and debentures. India’s biggest nationalized bank SBI also provides these types of loans. For taking a loan against security SBI advantage lies in the low interest rates and transparency. With loan against security SBI charges only 1% of loan amount as the processing charges. As for maximum amount as loan against security SBI offers Rupees 20 lakhs against your shares or debentures. Also note that for loan against security SBI requires the customers to provide a declaration which indicates the details of loan taken from other banks against the security of shares and debentures.

Amongst the private sector banks, HDCF loan against security is quite popular one. However, HDFC loan against security entails processing charges of up to 2% of the loan amount. There is a big list of approved securities available at bank’s website which can be used to avail the HDFC loan against security. The key benefits offered by the HDFC loan against security are no pre-payment charges, fast processing, interest calculated on daily basis, availability of loan to NRIs etc. However, there are many features and benefits offered by the bank for this kind of loan but sue to shortage of space, we can not cover all of them here. More details on loan against security provided by the HDFC bank can be found at other pages of Money Super Bazaar.

Loan against security is a good way to get liquidity from your investments in shares and debentures. And the best part is that you don’t need to sell them to get this. Some experts believe that the loan against security is a better option than a personal loan because of several reasons like low interest rates etc.

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