Loan Against Bonds

The major risk of a loan against bonds is that if the borrower is unable to repay the loan amount, the lender may liquidate the pledged bonds to recover the outstanding amount.

Yes, all individuals—both self-employed and salaried—are eligible for an online loan against bonds with Bajaj Finance.

Yes, you can take a loan against RBI (Reserve Bank of India) bonds. RBI bonds are government securities issued by the Reserve Bank of India and are backed by the government of India. These bonds can be used as collateral to secure a loan from a bank or any other financial institution. However, the terms and conditions of the loan may vary based on the lender's policies. It is crucial to review the lender's policies, interest rates, and repayment methods before applying for the loan.

Yes, you can obtain a loan backed by your investment portfolio. Securities-based lending allows individuals with a portfolio of stocks, bonds, and other financial assets to borrow against the value of their holdings. Typically, the loan amount is a percentage of the portfolio's value. Interest rates for securities-based loans are usually lower than other types of loans, and the repayment terms may be more flexible depending on the lender. It's important to weigh the benefits and risks of a loan against securities before deciding to take one.

When availing a loan against bonds, consider the following factors:

• Bond type: Different types of bonds may have varying terms and conditions for loans, so understand the specifics of the bonds you own.

• Interest rate: Assess the interest rate offered by the lender, as it affects the cost of borrowing.

• Loan amount: Determine the amount you need and ensure it aligns with the loan-to-value (LTV) ratio offered by the lender.

• Loan tenure: Choose a loan tenure that suits your repayment capacity and financial goals.

• Repayment terms: Understand the repayment schedule, including any prepayment penalties or charges.

• Lender's policies: Different lenders may have varying policies and eligibility criteria, so compare your options.

The maximum tenure for a loan against bonds can vary among lenders. Bajaj Finance Limited, for instance, offers a range of repayment options starting from 7 days and extending to 36 months. The specific loan tenure available to you may depend on the lender's terms and your eligibility.

The Loan-to-Value (LTV) ratio for a loan against bonds can vary depending on the lender and the type of bonds you own. Bajaj Finance Limited offers a loan of up to 95% of the bond's value that you pledge as collateral. It's important to check with your lender regarding the LTV ratio applicable to your specific bonds and the terms of the loan.