A Loan-Against-Assets is a secured loan where a borrower pledges an asset as collateral to access funds at lower interest rates compared to Unsecured Loans. Common types include Loans Against Property, vehicles, investments, valuables, and future payments.

The lender assesses the value of the pledged asset and offers a loan amount, typically 50-95% of the asset's value. The borrower makes monthly payments to repay the loan. If the borrower defaults, the lender can seize the collateral to recoup losses.

Key benefits include obtaining a large loan amount, enjoying lower interest rates, repaying over an extended tenure, and potential tax deductions on interest payments. Loans Against Assets provide liquidity while allowing borrowers to retain ownership of their assets.

Common collateral includes real estate, vehicles, investment portfolios, accounts receivable, equipment, inventory, securities like stocks and bonds, Fixed Deposits, insurance policies and valuables such as gold.

The main risk is losing the pledged asset if the borrower defaults on the loan. There are also market risks - if the asset's value drops below the lender's requirements, the borrower may need to repay part of the loan or provide additional collateral. In this type of loan, responsible borrowing and diversification are crucial.

Fund your business growth with HDFC Bank's Loans Against Assets for SMEs. Utilise your property, rental income, or investment portfolio to secure credit. Choose between an overdraft or a term loan based on your needs. Experience fast processing, quick disbursals, and flexible repayment options. Empower your business with HDFC Bank's tailored loan solutions to help you thrive.