Loan Against Securities: How Mirae Asset Financial Services is simplifying the process

Loan against mutual funds and loan against shares have been available for years but most retail investors are not aware of them. Even investors who are aware do not avail it, largely because of the difficult physical process involving multiple branch visits, reaching out to RM and submitting tons of documents for KYC, lien marking, etc. After all this hassle, investors have to wait for days for the loan account to be created. And if they want to de-pledge securities, then the process is even tougher and time-consuming.

Mirae Asset Financial Services provides loan against mutual funds in just 15 minutes and loan against shares on the same day. Loan against securities is provided as an overdraft facility, where one can withdraw the required amount and repay partially or completely without any prepayment charges. The interest is charged only on the amount utilised and for the duration it is utilised. If no amount is withdrawn, then no interest is charged. It’s a great tool to have emergency funds available at all times while the long-term investments grow.

Customers can avail the loan by completing these simple steps:

Not just the application process but all the services of amount withdrawals and repayments, top-up, security withdrawals, loan closure, etc. can be done digitally without having to visit branches or waiting for days.

Low rate of interest

The current rate of interest is 9% p.a. only on the utilized amount and with a fixed processing fee of Rs 999. The interest charged is only on the utilised amount and only for the duration utilised.

For example, if a person invests Rs 8 lakh in equity mutual funds. And they require Rs 3 lakh for renovating their home, with some expenses being incurred on day 1 and the rest after 45 days and so on. Then, if they require Rs 1.5 lakh on January 1 and Rs 1.5 lakh after 45 days (on February 16) and they aim to repay this Rs 1.5 lakh in 4 months from Day 1 (on May 1) and the rest Rs 1.5 lakh in the next 3 months’ time (on July 31).

As there are no prepayment charges the money can be withdrawn when there is a need and prepaid at convenience, which brings down the interest cost. Also, there is no restriction on the number of withdrawals and prepayments.

Mutual funds and shares are highly liquid assets; however, it still takes a day or more to sell the security and get money in the bank account. Availing a loan against them is much quicker, and, not to mention the cost incurred during redemption in taxes, exit loads, etc.

In short, loan against securities with Mirae Asset Financial Services is quick, economical and provides greater repayment flexibility compared to unsecured loans and credit cards.

With loan against securities, investors can take care of their short-term financial needs without redeeming their long-term investments and compromising their goals.

(Above mentioned article is a sponsored feature, This article is a paid publication and does not have journalistic/editorial involvement of IDPL, and IDPL claims no responsibility whatsoever)