How long does the disbursement of a loan against securities (LAS) usually take?
Answer
Answer
After you apply for a loan against securities (LAS) account, up on successfully meeting the criteria laid down by the lender, an overdraft account will be set up with your lender.
This account will have a certain drawing limit, which you can utilize as and when required.
Do note that the drawing limit depends upon the quality and quantity of the shares/mutual fund units pledged by you. This is because a lender- bank or non-banking finance company (NBFC) – has its own approved list of stocks.
Your portfolio could be worth Rs. 10.5 crore, but may be the stocks approved by the lender make up for only Rs. 7 lakh. Thus, you will get a loan against the value of stocks approved by the lender- that is Rs. 7 lakh in this case.