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A loan against securities or asset based lending is a type of loan where the borrower uses their investment securities such as stocks, bonds, mutual funds, or other financial assets as collateral to obtain a loan. The borrower pledges their securities and the lender provides funds based on a percentage of the value of those securities.

Here are some of the potential benefits of taking loan against securities-

• Retention of ownership - When you borrow against your securities you retain ownership of assets.
• Quick and convenient - Loans against securities can provide fast access to funds and involves very limited paperwork.
• Flexible use of funds - Unlike loans with specific usage restrictions ,loans against securities generally have more flexibility in terms of how you can use the funds.
• No impact on credit score - The loan amount is determined based on the value of the securities,not your income or credit history.
• Potential tax benefits - Borrowing against securities can save you from Short-Term Capital Gains (STCG) and Long-Term Capital Gains (LTCG) that may result from selling the assets.

A loan against securities is a type of loan offered by banks and financial institutions, where a borrower can pledge their securities as a collateral .

Some of the features of loan against securities are

• Collateral - The digital securities act as a collateral for the loan.The amount of loan depends upon the amount of securities pledged.
• Loan Amount - Loan amount is the percentage of the market value of the securities.
• Repayment - Loan can be repaid on customised EMI based structure which includes both principal and interest.
• Prepayment - The borrower can repay the loan amount before the due date by paying 1% of the outstanding amount if the repayment is done any time before 6 months.

To be eligible for the loan borrower must be a resident of India. Borrower should be between 18-65 years of age. The present value of portfolio should not be less than Rs.20000.

Lark charges 10% (flat) per annum on the principal amount. The borrower pays the principal and the interest in the form of EMI.

No physical documents are required for the loan. KYC documentations are done through Digi Locker. You also need to have access to the mobile number associated with your Aadhar and bank account.

A loan against securities can provide quick access to funds without selling the underlying securities.

Individuals may need immediate cash flows for personal or business expenses.

Lark doesn’t question about the utilisation of the loan.

Borrower gets loan upto 20-70% of market value of the securities, depending upon the type of securities he hold.

Minimum amount-Rs. 10000

Maximum amount-Rs.1000000

Processing of loans takes usually takes 30 minutes when it is against mutual funds and 4 hours when it is against shares and other securities.

Lark is currently offering loan for a tenure of 12 months.

We accept any bank account recognised by the RBI.