Options available with LAS

LAS offers a range of options tailored to suit different financial needs and preferences

• Types of Securities

  Loans can be availed by pledging different types of securities such as equity shares, mutual fund units, and ETFs.

• Loan Amount and Tenure

  The loan amount is generally a percentage of the market value of the pledged securities, varying from 35% to 80%, depending on the type of security and lender policies. The tenure of the loan is flexible, ranging from a few months to up to five years, as per the product and lender’s policy.

• Interest Rates and Repayment

  Interest rates on LAS are typically lower than those on unsecured personal loans, as the loan is backed by collateral. The interest charges and repayment options are usually as per the lender’s policy, with flexible options often available.

• Types of Loans

  Usually, one can avail products such as (a) Term Loans, (b) Consumer Loans, and (c) Flexi-loans, depending on the lender. These products typically vary in nature and can be chosen according to the needs of the customer.

Why opt for LAS?

Taking a LAS instead of an unsecured personal loan offers multiple advantages, such as

• Quick Access to Funds

  LAS provides immediate access to funds without the need to sell your investments. This is particularly useful in times of urgent financial needs or unforeseen expenses.

• Continued Investment Benefits

  By pledging securities instead of selling them, investors continue to benefit from potential capital appreciation, dividends, and interest income of the underlying assets. This ensures that the long-term investment strategy remains intact.

• Lower Interest Rates

  LAS typically offers lower interest rates compared to unsecured loans and credit cards, as the loan is secured by collateral. This makes it a cost-effective borrowing option.

• Flexible Repayment Options

  Flexible repayment terms are generally offered, allowing borrowers to manage their cash flows effectively without straining their finances.

Who should consider taking LAS?

LAS is suitable for a wide range of individuals and businesses with different financial needs and objectives

• Business Owners

  Business owners can utilise LAS for working capital requirements, business expansion, or managing cash flow gaps without liquidating their investment portfolio.

• High Net-Worth Individuals (HNIs)

  HNIs with substantial investment portfolios can leverage LAS to quickly access large sums of money for investment opportunities, real estate purchases, or luxury expenditures.

• Short-Term Borrowers

  Individuals who need short-term funds for personal expenses such as weddings, medical emergencies, travel, or even buying consumer goods can benefit from quick disbursal and lower interest rates.

• Investors Seeking Liquidity

  Investors who want to maintain liquidity while keeping their long-term investments intact can use LAS to meet their immediate financial needs without selling their securities.

With NJ E-Wealth Account, you now get easy and convenient access to LAS as per your requirements. Get in touch with your NJ Wealth Partner to know more.