Loan against Share is the newest development in the field of secured loans and we, at Apna Loan Guru have adopted in its best form. In this loan some specified shares and similar securities are furnished to apply for it. If the borrower fails to repay the loan the shares will go to bank and the profit or loss in this share will be incurred by it.
Loan against Shares is the latest trend in the market of loan. Nowadays, when loans have become important way to accomplish any and every dream starting from having your own house to fund for a long awaited vacation, the banks are coming up with new and easy schemes of providing loans. The newest name added to this list is Loan against Shares. The shares bought by the customers, acts as security for loan in this case. The shares in which someone has invested his money can get him a loan to serve any purpose for which he is otherwise facing a shortage of fund as we at Apna Loan Guru offer the best in class deals in this sector too.
Investment in share is very common to a person in the present situation. It is one of the popular measures of short term and long term investment. The investor purchases the shares of a certain company and then waits for the price of these shares to increase. When the person finds out that the prices have gone up enough to yield him an optimum profit, he sells them. But these investments are definitely very risky, because instead of going up there is also a possibility of the prices of the shares to fall down which will cause the investor to incur a loss. Investment in shares is a non guaranteed one and is subject to market risk but we turn this into an easy asset to help you with the required loans.
But still, as we know the formula of no risk no gain, people do make this a highly profitable investment. With more and more awareness in this sector people have learnt to take calculated risks. The ones who are used to this investment now maintain a portfolio of high risk and safe shares. When we talk about Loan against Shares, more consideration is given to the safe shares. The safe shares are those whose prices do not shoot high up all of a sudden but also the chances of loss are least.
The specifications regarding which shares are to be considered depends on the bank in which the application is placed. These conditions differ with different banks. If one bank considers a particular share to be considered for disbursing Loan against Shares, it does not necessarily mean that the other bank will also find it acceptable. Every bank has its separate list of security which is considered valid for the loan and we too have some similar but easy to go norms. But usually, accept only those shares which are listed in the Demat account of the applicant or are present with him in physical form. More or less, every bank accepts the shares of blue chip companies and so do we.
The Loan against Shares is a risky affair for the banks also. Even if the loan falls under the secured loan category, the security itself is not 100 percent safe. If in any case the borrower is unable to pay back the loan and the share price goes down due to a recession in the market the bank will have to wait till the market recovers, for the recovery of the loan. Taken the uncertainty in the profitability of a company, and in case there is any need for liquidation, the bank will have to face the entire loss. On the other hand, if the shares go to the bank due to incapability of the borrower and the prices go up then the bank will be able to reap the benefits of the raised prices. Our services, while in accordance with the policies and norms are highly preferred due to their easy going nature.