Loan Tips: You will get loan sitting at home, no need for CIBIL score..

There are many situations in life when a loan is needed in a hurry and there is no time to go to the bank. At the same time, the CIBIL score of some people is so low that banks shy away from giving them risky loans like personal loans. To such customers, we are telling them an easy and economical way to take a loan. In this you neither need a good CIBIL score nor need to go to the bank. Not only this, you will also have to pay less on interest as compared to banks. Apart from this, you will have to submit a form i.e. application for loan sitting at home and the money will come into your account.

So now let us tell you that here we are talking about taking loan from demat account loan. Nowadays most of the youth invest in the stock market. SEBI figures also say that more than 11 crore demat accounts have been opened in the country. You will also have your own demat account and invest in options like shares, securities, bonds and ETFs.

You can also take a loan against any of these investment options whenever you want. Suppose you want a loan against your shares, then the money will easily come into your account and there will be no need to sell shares. Additionally, if your shares rise further, your profits will also remain intact.

Now you can get loan easily

You already know that your demat account is opened by linking it to one or the other bank. When you apply for a loan against shares, the bank takes your shares as collateral and gives you money in return. Since all this work is done through a single bank or financial institution. Therefore, the process becomes quite easy and the money comes to your account quickly.

You will also continue to get all the benefits

When you take a loan against shares, the shares remain in your possession in your demat account, even though you have taken a loan against them. You will continue to get other benefits like dividends, bonuses and rights on its shares. One advantage of this is that if the price of your share increases over time, you can later sell it at the increased price and repay the loan amount from there.

What is the qualification required for loan?

You should know that to take loan against demat shares, your age should be more than 18 years or less than 65 years. Loan can be taken against pledge of only those shares which are in the name of an individual.

Shares cannot be pledged in the name of minors, Hindu Undivided Families (HUF), Non-Resident Indians (NRIs) and corporations. For this, some documents like ID proof, address proof, income proof and bank statement are required.

It is cheaper than a personal loan

Let us tell you that you can get a loan up to Rs 20 lakh against demat shares. The interest on this type of loan is usually lower than that of a personal loan. On most demat accounts, you will get loan at 12 to 18 percent annual interest. In this you do not need a guarantor and there is no penalty of any kind for premature repayment of the loan.