InvestorQ : Loan against securities (LAS) is recommended for what type of borrowers?
Nikita Damle made post

Loan against securities (LAS) is recommended for what type of borrowers?

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Priyanka Singh answered.
3 years ago
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There may be instances in one’s life when you need money urgently, but do not have any substantial asset to pledge a loan against. Not everyone has gold to take a gold loan against.

However, if you have holdings in equities or debt funds, you can easily pledge them to get funds in a timely manner.

By taking a loan against securities (LAS), you only pledge your stocks or securities. You DO NOT sell off your securities. This loan has twin benefits:

1. You get your funding

2. You continue to hold your securities

The amount of money you can get depends on the security that you have pledged.

When you pledge a security, you get steady cash easily at the time you need it the most and this also means that you won’t have to sell your shares and not benefit from the bonus and dividends.

Usually, a current account is opened in the borrower’s name and the rate of interest is calculated on the amount that is withdrawn by you during the period of utilisation.

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