Housing Loan Blog

  1. Loan against Securities (LAS)

    Loan against Securities (LAS)

    Currently, when people are well informed about various types of loans such as personal, business, educational loans, etc., loaning against securities is still a less known option. Loan against securities scheme, also known as the LAS scheme, is a popular practice whereby an investor can pledge securities in his / her portfolio to a bank to make use of funds.
    Fast all private banks and PSUs are offering such loans. The loan shall be granted if an investor pledges his / her shares to a bank. The list of approved securities against which LAS can be granted varies from bank to bank. Banks have already started to increase the financial reserves which can be required for this alternative.

    The following securities can primarily be pledged for a loan:
    • Demat Shares
    • Mutual Funds Units
    • Fixed Maturity Plans (FMP)
    • Exchange Traded Funds (ETF)
    • Insurance Policies
    • Savings Bonds
    • Government Securities

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  2. Why should we avoid offering a 3-month moratorium?

    Why should we avoid offering a 3-month moratorium?


    RBI has proposed a number of steps to alleviate liquidity and offer relief to lenders and their borrowers. It also declared a three-month freeze on the payment of payments on all term loans, such as home loans, auto loans, school loans, consumer durable loans, and personal loans due between 1 March and 1 March. May 31st, 2020. Often, credit card payments are part of the calculation. Most lenders, though, must have paid the EMIs for the month of March, because they are immediately debited from the bank account.

    The moratorium extends to all term loans and working capital loans for all forms of lenders — commercial banks, including rural national banks, small finance banks, and state banks, co-operative banks, microfinance organizations and non-banking finance companies (NBFCs), including housing finance companies (HFCs). That is not a concession, but just a change in payment s

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