LOAN AGAINST SECURITIES

Shares / Mutual funds can be pledged as collateral for a loan with financial institution for availing a loan. Typically, you can get 60-70% of the value of units pledged as a loan.

Fixed deposit not only offers assured returns but can also come handy when you need a loan. The amount of loan can vary between 70-90% of the FD’s value and varies across lenders. However, it’s essential to note that the loan tenor can’t be more than the FD’s tenor.

Yes, you can also avail loans against your insurance policy. However, note that all insurance policies don’t qualify for this. Only policies, such as endowment and money-back policies, which have a maturity value can be used to avail loans.
Thus, you can’t avail a loan against a term insurance plan as it doesn’t have any maturity benefits. Also, loans can’t be availed against unit-linked plans as the returns aren’t fixed and depends on the performance of the market. It’s essential to note that you can opt for a loan against endowment and money back policies only after they’ve acquired a surrender value. These policies acquire a surrender value only after paying regular premiums continuously for 3 years.

A gold loan requires you to pledge gold jewelry or coins as collateral. The loan amount sanctioned is a certain percentage of the gold’s value pledged. Gold loans are generally used for short-term needs and have a short repayment tenor compared to home loans and loan against property.