Loan Tips: You will get a loan sitting at home, with no need for a CIBIL score..

Many such situations arise in life when a loan is needed in a hurry and there is no time to visit the bank. So, the CIBIL score of some people is so low that banks hesitate to give them risky loans like personal loans. To such customers, we are telling them a simple and economical way to take a loan. In this, you neither need a good CIBIL score nor need to go to the bank. Not only this, you will have to pay less on interest as compared to banks. On top of that, you will have to submit a form i.e. application for a loan while sitting at home and the money will be credited to your account.

So now let us tell you that here we are talking about taking a loan from a Demat Account loan. Nowadays, most of the youth invest in the stock market. SEBI data also says that more than 11 crore demat accounts have been opened in the country. You will also have your Demat account and have invested in options like shares, securities, bonds, and ETFs.

You can also take a loan against any of these investment options whenever you want. Suppose you want a loan against your shares, then the money will easily come into your account and there will be no need to sell the shares. Beyond this, the profit you are going to make if your shares rise further will also remain intact.

Now you can get a loan easily

You already know that your Demat account is opened by linking it to one or the other bank. When you apply for a loan against shares, the bank takes your shares as collateral and gives you money in return. Since all this work is done through a single bank or financial institution. Therefore, its process becomes quite easy and the money comes to your account quickly.

You will also continue to get all the benefits

When you take a loan against shares, the shares in your demat account remain in your possession, even if you have taken a loan against them. You will continue to get other benefits on its shares like dividends, bonuses, and rights. One advantage of this is that if the price of your shares increases with time, then you can later sell it at the increased price and repay the loan amount from there.

What qualification is required for a loan?

You should know that to take a loan against demat shares, your age should be more than 18 years or less than 65 years. The loan can be taken against the pledge of only those shares which are in an individual's name.

Shares cannot be pledged in the name of minors, Hindu Undivided Families (HUF), Non-Resident Indians (NRIs), and corporations. For this, some documents like ID proof, address proof, income proof, and bank statement are required.

It is cheaper than a personal loan

Let us tell you that you can get a loan up to Rs 20 lakh against demat shares. The interest on this type of loan is usually less than that of a personal loan. You will get loans on most demat accounts at 12 to 18 percent annual interest. In this, you do not need a guarantor and there is no penalty of any kind on prepayment of the loan.