Every loan comes with its own set of eligibility criteria, features and benefits. In order to secure the loan, it is imperative not only to know these criteria but to meet them as well. Talking about the secured loan the applicant must pledge a security relevant to the lender and which can suffice for outstanding in case of failure to pay up the loan.
Being secured in nature loan against securities interest rates are not too high too. Simply because a fixed asset is pledged as collateral against the loan. Thus, lenders find it easier to trust such applicants.
Now, let’s know more about how you can avail affordable interest rate on the loan against your mutual funds:
Instant liquidity is a major advantage with this kind of loan. They help to cater to planned as well as unplanned financial emergencies. Therefore, as a first step towards the loan ensure to maintain a healthy credit report. Usually, a credit score of 750+ or more is ideal to obtain the loan.
Check out the list of approved securities considered by the lender. Major lending institutions accept shares, mutual funds, FMPs, IPOs, ESOPs and bonds as collateral for the loan and relevant paperwork needed. For instance, a loan against mutual fund offers simplicity, diversification, cost, and easy management by do-it-yourself borrowers.
Know the eligibility criteria for the loan of your preferred lender. Leading lenders provide loan on easy-to-meet eligibility criteria which states that -
- The applicant must be 21 years of age at the time of applying for the loan
- They must be either salaried or self-employed with a stable income source