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How LAS Is Better Than A Personal Loans
11 February, 2022
With the rapid development of digitization, an increasing number of institutions have begun to offer loans that are simple to obtain. Personal loans have been around for a long time, but with increasing needs and convenience, seeking a Loan Against Securities can now be one of the quickest and easiest ways to secure funds.
A loan secured against your Demat assets, which include stocks, bonds, mutual funds, insurance, and other securities, is known as a loan against security.
The following are some of the advantages of taking out a LAS rather than a Personal Loan:
- No credit score worry
Personal loans take into consideration your credit score and its performance to let you avail a loan whereas availing a Loan Against Securities will not take credit score into consideration.
With spark.loans app, you can avail a quick LAS on your investments without worrying about your credit score. A LAS works to evaluate your investment portfolio to receive a valuation for your loan requirement depending on your investments like stocks, shares, policies, and more in your demat account.
- Quick financing
No emergencies come called for but when they do, a Loan Against Securities can be your savior. With easy and quick steps to finance, anyone with a Demat investment can avail the loan without much hassle.
A traditional personal loan can take a lot of processing time with various physical documentation requirements.
- Convenient pre-payment
Of course, pre-paying your loan comes with benefits like improving your credit score and going debt-free quicker than planned, but financial institutions tend to charge fees for loan prepayments and these terms may vary from institution to institution.
However, availing a LAS can enable you to keep away from these added charges. With convenient tenure options to choose from, why not go ahead and avoid the burden of prepayment penalty? With an easy app to download and use, spark.loans lets you have this and multiple other benefits of getting a LAS with them.
- Assets to use
If you are someone who actively invests, you would have known about a variety of them - stocks, shares, mutual funds, policies, debentures, bonds as long as they are in a Demat format. With a diverse portfolio to explore, you can take a loan against any of these as collateral.
Personal loans do not require you to put your assets up as collateral, but your credit score will be used to evaluate the value of your loan amount. Depending on the history of your financial movements, this could alter the loan's valuation.
So, rather than worrying about your loaning options when you only need a relatively small amount of money, choose a LAS with spark.loans and avoid worrying about your credit score while having a variety of options to choose from. Make your investments work for you!
- Better interest rates
Every financial institution charges an interest rate when availing a loan with them and your personal loan can have higher interest rates. It varies from bank to bank and the tenure of return you choose. Whereas, a Loan Against Security can save you bucks on the interest rate.
Because you can save on growing interest rates with a LAS, you can keep your profits climbing. This is because, regardless of the loan amount for which you obtained the evaluation of funds, interest rates are only paid on the amount that you withdraw.
Now that you understand how beneficial getting a LAS can be, and facing the stress of higher rates, just build your investment portfolio and enjoy a win-win situation for both you and your investments.
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