Investments You can Pledge to Acquire a Loan Against Securities


The popularity of loan against securities NBFC is increasing day by day. The reason is that it allows you to invest your money, without having to worry about the liquidity feature. Unlike many other investment options, where liquidity is not instant, a loan against securities NBFC follows a different concept.

However, what most borrowers are still confused about, are the type of securities that they can pledge. It usually stops them from opting for a loan against securities NBFC. The only way to deal with this situation is by increasing your knowledge regarding the financing service.

In case you want to do the same, then we recommend you read this article through. Here you will be able to learn about the seven types of investment options that can be used. In other words, these options will allow you to borrow a from NBFCs instantly. 

1. Demat and physical shares

The stock market in India allows you to invest in shares easily. Ever since this option has been available for investors, it has turned out to be a fund generating system. With the help of a loan against securities offered by NBFCs, you can trade both Demat and Physical shares for funds.

2. Non-convertible debentures

A non-convertible debenture, which cannot be turned into an equity share, is also eligible for a loan against securities NBFC. It is because upon reaching maturity, the amount of a non-convertible debenture is paid to the holder at once. It means the bank will be able to adjust the due loan amount through your maturity claim.

3. Life insurance policies

We all know what a life insurance policy is. It is a way to cover for the untimely demise of a breadwinner of a house. But in case you need funds immediately, then you can pledge such policies to acquire a loan against securities. Besides, it gives you a flexible repayment system as well.

4. UTI and NABARD bonds

In case you have been investing in bonds to save taxes, then that can also help you generate funds. Both UTI and NABARD bonds are acceptable, when it comes to, borrowing a loan against securities.

5. Mutual funds

Mutual funds are like investing in shares with the help of a financing institute. The same can be pledged, when you are looking to generate funds using a loan against securities NBFC. It allows you to accumulate money for various purposes instantly.

6. National Savings Certificate

A national saving certificate is a government bond, which is used for tax benefits and small size investments. It is also one of the oldest types of investment options available in India. With NSC, borrowers can easily apply for a loan against securities.

7. Kisan Vikas Patra

It is an investment scheme, which was started by the Indian Post Office and is still being used regularly. A Kisan Vikas Patra can allow small scale investors, to acquire a loan against securities NBFC conveniently. However, for this, you would need to visit a financing firm and know about the relevant details in person.

There are a number of lenders including NBFCs (Non-Banking Financial Companies) available today with whom you can apply for a loan against securities. The eligibility criteria are very simple and the documentation required is minimal. One such reputed lender is Bajaj Finserv which apart from providing loans against securities is also known to offer pre-approved offers on quick financing options. The aim of creating these pre-existing deals is to make the loan processing completely hassle-free and fast.


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