Are loans against stocks and mutual funds good for investors?
With stocks, mutual funds, bonds, and insurance adapting to more advanced technology, investors can use them as additional collateral for other purchases. Some financial institutions currently offer loans against stocks and mutual funds facilities to investors.
The loans which are secured are generally one of the easiest forms of meeting emergency cash crises. They are packed with benefits such as lower interest rates, affordable, no need to maintain a high credit score, involve collateral, and are easily available at banks and other financial institutions. Some of the popular secured loans are loans against property and gold. But did you know, loan against your equity shares or mutual funds holding is also allowed?