Non-banking financial companies (NBFCs) are becoming major players in the financial landscape due to various factors. First, they offer improved flexibility and agility compared to traditional banks. This allows them to innovate and adapt to changing consumer needs more quickly. Additionally, NBFCs cater to segments of the population that may not have easy access to traditional banking services. Hence NBFCs play a crucial role in filling a gap in the market.
The top 10 NBFC stocks in Indiaprovide different types of loans, including loans against property, personal loans, business loans, vehicle loans, gold loans, and loans against shares.
Loan against Shares (LAS) is a type of secured loan offered by financial institutions, where borrowers pledge their shares or securities as collateral to obtain funds. It is best for investors who need money but don’t want to sell their investments, like stocks. In this article, we will discuss the best NBFCs that provide loans against shares.
Top 5 NBFCs providing loans against shares
- Bajaj Finance
Bajaj Finance is a prominent non-banking financial company. It offers loans against shares with competitive interest rates and adaptable repayment plans. Bajaj Finance typically offers a high LTV ratio, allowing borrowers to get substantial funds against their shareholdings. The company is well known for its services including streamlined application process and rapid loan approvals. It also provides other consumer loans, EMI financing, and credit cards. The company is dedicated to customer satisfaction with transparent policies, and an extensive range of financial services. This makes Bajaj Finance a trusted partner and preferred choice for individuals seeking LAS.
- Tata Capital
Tata Capital which is a subsidiary of the esteemed Tata Sons holds a significant position in the financial services domain. It offers loans against shares with attractive interest rates, convenient repayment schemes, and swift loan disbursement. The company offers loans up to Rs.5 lakhs to Rs.20 crores on an interest rate of 10.5%. Tata Capital with its solid reputation and customer-centric approach ensures a seamless borrowing journey.
- LoanTap
LoanTap is known for its innovative loan products. Their loan against-shares offering caters to individuals looking for liquidity without selling their shares. LoanTap tailors loan terms to individual needs. Borrowers can choose between fixed or floating interest rates. Additionally, the company requires minimum documentation to avail the loans against shares. LoanTap also provides personal loans, EMI-free loans, and overdraft facilities.
- Navi
Navi, founded by Sachin Bansal, aims to simplify financial services for customers. Their loan against shared products is designed for convenience. Navi focuses on a seamless digital experience for borrowers. Borrowers can apply for loans online with ease. The company ensures clear communication throughout the loan process ensuring complete transparency.
- Axio
Axio is a technology-driven NBFC that provides loans against shares. Axio streamlines the application and approval process through technology. They prioritize customer convenience and ease of use. Further, Axio offers competitive terms for borrowers. Axio is recently gaining traction in the market due to its tech-savvy approach.
Documents required for Loan against shares
You are required to have the following documents to get a loan against shares:
- Identity proof such as Voter’s ID, PAN Card, passport, or Adhar card
- Proof of address such as rent agreement, property documentation, utility bills, etc.
- Income proof including salary slips and IT returns.
- Passport size photo
- Proof of age like birth certificate, passport, voter’s ID card, etc.
Conclusion
In conclusion, before you decide to take a loan from an NBFC make sure you understand the eligibility requirements set by the particular NBFC. For example, you need to hold shares in dematerialized form, and the shares should be listed on recognized stock exchanges. Additionally, it is recommended to check the maximum LTV (Loan-to-Value) ratio offered by the NBFC as it determines the percentage of the share value against which you can get a loan. Higher LTV ratios provide more liquidity.
Apart from this check the interest rates, processing time, tenure and repayment options, and charges across different NBFCs. You can also consult with financial advisors and compare offerings from different NBFCs before deciding.