How to avail Loan Against Bonds
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Frequently asked questions
If you have a minimum of Rs. 50,000 bonds in your Demat account, you can apply for a loan against bonds with Bajaj Finance. Against the bonds you can get loan amount ranging from Rs. 10,000 to Rs. 1000 crore.
You can apply for loan against bonds by clicking on the ‘Apply’ button on this page. Fill in your personal details, and the value of your bonds. Accordingly verify your details through an OTP.
Corporates/HUF/LLP/Partnership can apply for loan against bonds of up to Rs. 1000 crore, by reaching us at las.support@bajajfinserv.in
A loan against bonds (LAB) is a type of loan where the customer pledges their bonds as collateral to obtain a loan from Bajaj Finance. The process of obtaining a loan against bonds typically involves the following steps:
a. Evaluation of bonds: The lender will evaluate the bonds that the borrower wants to pledge as collateral. The lender will consider the value of the bonds, the market conditions, and the risks involved.
b. Loan amount: Based on the evaluation of the bonds, Bajaj Finance will determine the maximum loan amount that can be provided. Bajaj Finance offers loan up to 95% of the market value of the bonds.
c. Loan terms: The borrower and Bajaj will agree on the terms of the loan, including the interest rate, repayment period, and any other conditions.
d. Pledge of bonds: The borrower will pledge the bonds as collateral with Bajaj Finance, corresponding to which the loan amount will be disbursed to the borrower.
e. Repayment: The borrower must repay the loan amount along with the interest within the agreed-upon period. If the borrower fails to repay the loan, Bajaj has the right to sell the pledged bonds to recover the loan amount.
In summary, a loan against bonds provides a way for borrowers to access funds while still retaining ownership of their securities
When you take a loan against bonds from Bajaj Finance, you have the flexibility to choose your repayment term. You can opt for a minimum repayment period of 7 days, and if needed, you can extend the loan for up to 36 months. This flexibility allows you to tailor the loan repayment to your financial needs and capabilities.
The rate of interest for a loan against bonds from Bajaj Finance is competitive and can go up to a maximum of 20% per annum. The specific interest rate you receive may depend on various factors, including the type of bonds you pledge as collateral and your creditworthiness. It's essential to inquire about the interest rate and other terms and conditions when applying for such a loan to make an informed decision.
