Bank's Loan Against Securities (LAS) is a type of loan product that allows borrowers to avail loans by pledging their securities like shares, mutual funds, bonds, or other securities as collateral. The loan amount is sanctioned based on the value of the securities pledged, and the borrower can avail up to a certain percentage of the market value of the pledged securities.
The key features of Yes Bank's Loan Against Securities are:
Eligibility: Any individual, partnership firm, or company can apply for the loan against securities, subject to meeting the bank's eligibility criteria.
Collateral: The loan is secured against the securities pledged by the borrower, and the bank holds the securities as collateral until the loan is fully repaid.
Loan amount: The loan amount is determined based on the market value of the securities pledged, and the bank usually provides up to a certain percentage of the market value as a loan.
Interest rate: The interest rate charged on the loan against securities is usually lower than that on unsecured loans, as the loan is secured by collateral.
Repayment: The borrower can repay the loan in EMIs (Equated Monthly Installments) over a predetermined period of time. The loan tenure can range from a few months to a few years, depending on the bank's policies.
Prepayment charges: The borrower may be required to pay prepayment charges if they decide to repay the loan before the end of the loan tenure.
Yes Bank's Loan Against Securities can be a good option for borrowers who need funds quickly and have securities that can be pledged as collateral. However, it is important to carefully evaluate the terms and conditions of the loan, including the interest rate, repayment tenure, and prepayment charges, before deciding to avail the loan