Loan against securities is a credit scheme which allows people to mortgage their investment securities such as your demat shares at times of cash needs. This allows borrowers to preserve the maturity value of their investment while managing funds to manage their cash needs.
For instance, here are five ways to make optimum use of loan against demat shares:-
Can be used for debt consolidation: First of all, you can use the loan amount obtained from the said credit scheme for debt consolidation. Subscription to a very high-interest rate loan for a very long time or subscription to multiple debts can be a hassle sometimes. In such circumstances, it is better to consolidate them and get rid of the burden.
Fund the expenses of your wedding: Secondly, given the fact getting married is an expensive affair, you can use the borrowed funds to manage the cost of your wedding.
Pay for higher education: In addition, you can also use a loan against demat shares to fund your child’s higher education, be it in India or in a foreign university.
Pay medical bills for an unplanned emergency: Also, you can use the money to pay for unplanned medical emergencies.
Fund your business: Lastly, you can use the borrowed funds to manage your business related needs such as business expansion, marketing, conducting mandatory training or even for buying equipment.
Irrespective of why you use the borrowed sum, ensure your eligibility for the loan beforehand. The eligibility conditions are mentioned on the lender’s website.
To Know more about the loan against demat shares, click here: Loan Against Demat Shares – 5 Ways You Can Make the Most of It