Mostly, investments in shares and mutual funds are useful keeping a long-term goal in mind and instant liquidity options are few and far between. TATA Capital provides a specialised loan that aims to change that norm. This loan from TATA Capital allows individuals and non-individuals to utilise the financial support of their investments without having to cancel out the investments or liquidating them. These loans can help out in business or personal financial needs.
This loan is provided to individuals or non-individuals for any purpose that is not explicitly speculative. Banking on the power of the investments made by the applicant, this loan is a powerful aid in financial terms.
An unsecured business loan as this has a few eligibility criteria to be met in order for the financial institution to be able to sanction the loan. The eligibility requirements can be mentioned as follows –
Loan against Securities from TATA Capital is a specific term loan with optional overdraft facility.
Based on the credit-worthiness of the applicant, validity of documents and the market value or NAV of the pledged securities, TATA Capital can provide loans within a wide range of INR 5 lakhs and INR 10 crores. A maximum of INR 7.5 crores can be availed as a loan against share or mutual funds. Against debt instruments and bonds, a maximum loan of INR 10 crores can be availed. Up to 50% of the market value of Scrips and Mutual Funds and 70% of the Net Asset Value of Mutual Funds can be considered loan-worthy.
Interest rates for a Loan against Securities could depend on the base lending rate and is based on the discretion of TATA Capital. Further changes to the rates could be done by TATA Capital as and when required.
The standard list of required documents for applying for this loan are mentioned as follows –
The above set of documents comprise the minimum required list. To aid in credit approval, TATA Capital might ask for extra documents if necessary.
The Loan against Securities from TATA Capital is a good financing option for urgent financial needs on business or personal grounds.
Some key features of this specialised loan are as follows –
The loan can be applied for through TATA Capital’s website, as well as forms can be downloaded, filled and submitted along with relevant documents at a local branch. Additionally, one could call or mail TATA Capital requesting an executive assistance for application process.
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