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Securities: Loans against Bonds, Properties and Mutual Funds

Loans against Mutual Funds , Loans against Properties , Loans against Bonds are issued in the name of the financial institution as a security as a key requirement to acquire a loan.

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Securities: Loans against Bonds, Properties and Mutual Funds

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  1. JM Financial Article Securities: Loans against Bonds, Properties and Mutual Funds

  2. Why do we need loans to run companies? Why does a company start up or a firm need financial lending from banking services? Such questions are often asked. But the most common question of it all remains why financial lending by any institute to the companies does and firms need a security. What is a security and how does it help a company or firm get financial help from the NBFC? To make it simple we must first understand the reasons a company needs to lend money to run efficiently.

  3. Loans as we know them are amounts of money lend for a fixed time period to a particular company firm or individual after the lender inspects upon the reason and validity of the loan as well as authentication of the lending parties. Upon taking a loan the company firm or individual must return the amount with the or decided interest to the lender over a fixed interval of time within the loan period. Herein if the party fails to pay up the amount with interest as decided, the lender can take legal action or sue the party. Companies and firms need this amount of money during their financial years to buy stock or assets that may require a huge amount of money all at once. No company jeopardizes their financial positions by taking out such amounts from their capital or cash.

  4. Loans are an important and essential part of running a business. But, to provide a loan to an individual firm or a company, the Non-Banking Financial institution needs some security deposit in case the business fails to recover the loan amount. Loan against securities are provided with loan against property for most start ups while most of the already established businesses prefer loan against Mutual Funds and Loan against Bonds. Lending money in the form of Loans is one of the chief activities performed by a financial company in India.

  5. Each company that functions in India runs on a loan and advance basis, be it a large scale or small scale business. Financial Non Banking Institutes provide such loans and advances and play an active role in the setting up or stabilizing of the financial conditions of a business, be it a sole proprietorship, firm or company. JM Financial and other such notable financial Institutions help guide a company towards a potential height by providing them with financial backup against securities. This main pillar of the NBFCs as a financial supporter to companies also help them gain being a part of the company, as stake owners, for the stipulated time period when the loans are provided. Loans against Mutual Funds , Loans against Properties , Loans against Bonds are issued in the name of the financial institution as a security as a key requirement to acquire a loan.

  6. Contact Us JM Financial Ltd7th Floor, CnergyAppasahebMarathe Marg, Prabhadevi,Mumbai - 400 025Phone : + 91 22 6630 3030Fax : +91 22 66303223Website: https://www.jmfl.com/what-we-do/fund-based-activities

  7. Thank You

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