The only certain thing about life is its uncertainty. No matter how much you plan, you’ll always fall short by just a margin. This applies to every aspect of life, your career planning, your future planning and your financial planning. Therefore, you must never rely on your plans because they are never foolproof; keep your options ready at the back of your mind.

Taking a cue from the same, a loan against security is a quick and reliable alternative which can help you with required funding at a lower interest rate. However, if you are to keep this facility as your plan B, you must have the know-how of securities you can mortgage to take a loan against securities.

Accordingly, below are some 3 types of securities which can be used as a collateral for the said loan.

Life insurance policies: Almost all of us are subscribed to life insurance policies by one or another insurer. These policies, if left undisturbed, entitles the insured with a considerable chunk to meet his/her financial goals. Now, given the maturity amount is fixed, using it as a collateral would let you borrow a considerable amount as loan while preserving its final value.
Mutual funds: All of us know about mutual funds and thus, we need not elaborate. However, you must know you can mortgage certain specific type of mutual funds to borrow a loan against their market value.

Fixed Deposit: Lastly, you can use your Fixed Deposit certificates to take a loan against FD. This credit facility is also available seperately.

To know more about the securities which you can pledge, click here: Investments You can Pledge to Acquire a Loan Against Securities