An arrangement in which a lender gives money to a borrower, and the borrower agrees to repay the money, usually along with interest, at some future point(s) in time. Usually, there is a predetermined time for repaying a loan.

1. Loan Against Shares

Loan against shares is available in the form of an overdraft facility against the pledge of financial securities like shares/units/bonds. After you submit the loan application with all the share certificates and other relevant documents, a current account is opened in your name. You can then withdraw up to the amount sanctioned and interest will be charged only for the number of days you use the amount.

2. Loan Against Mutual Funds

Loan against your equity or hybrid mutual fund units could be taken from a bank or a non banking finance company (NBFC) by pledging your mutual fund units. You can pay back the loan at the interest rate agreed with the financier.