What is the difference between a secured loan and an unsecured loan?

A secured loan is backed by collateral — an asset the lender can seize if you default. Home loans (property as collateral), car loans (vehicle), and loans against mutual funds or shares (securities) are secured loans. They typically offer lower interest rates. An unsecured loan like a personal loan has no collateral — approval is based on your credit score and income. Because of higher lender risk, interest rates are higher.

What is a loan against mutual funds (LAMF) and how does it work?

A loan against mutual funds (LAMF) lets you pledge your mutual fund units as collateral to get an overdraft or term loan without redeeming your investments. You can typically borrow 50–80% of the value of equity funds and 80–90% of debt funds. Your units remain invested and continue to earn returns while you use the loan funds. Interest is charged only on the amount drawn, making it one of the most cost-effective borrowing options.

How does a loan against shares (LAS) work?

A loan against shares allows you to pledge your listed equity shares as collateral to get an overdraft facility. Lenders typically offer 50–75% of the market value of approved shares (based on SEBI-approved list). The credit limit fluctuates with market value. Interest is charged only on the drawn amount. LAS is ideal for short-term liquidity needs without having to sell your long-term equity holdings.

Will taking a personal loan affect my credit score?

Taking a personal loan can both help and hurt your credit score. A new loan creates a hard inquiry (small temporary dip) and increases your overall debt. However, making consistent on-time EMI payments over the loan tenure demonstrates good credit behaviour and can significantly improve your CIBIL score over time. Defaulting or missing EMIs will sharply damage your score.

Can I prepay or foreclose a loan in India?

Yes. RBI guidelines prohibit banks from levying foreclosure or prepayment charges on floating-rate retail loans (including home loans and car loans). For fixed-rate loans and personal loans from banks, a foreclosure fee of 2–5% may apply depending on the lender. NBFCs may have different terms. Always check the foreclosure clause in your loan agreement before signing.

Loans In Coimbatore — Home, Personal, Car, 2-Wheeler, LAMF & LAS

Why Sid Financial Services

Independent advice. Your best deal.

We work for you, not the bank. As an independent advisor, we compare offers from multiple lenders and help you choose the loan that saves you the most — in rate, tenure, and total cost.

Best rate guarantee

We compare rates across banks and NBFCs so you don't have to. Even a 0.25% lower rate on a ₹50L home loan saves ₹2–3 lakh over 20 years.

₹2–3L saved on a typical home loan

Fast-track approval

We help you prepare a complete, error-free application that reduces back-and-forth with the bank — cutting typical processing time significantly.

48-hour in-principle approval support

Zero fee advisory

Our advisory is completely free for you. We are compensated by the lender only when your loan is disbursed — so we are fully motivated to get you the best deal.

No cost to you — ever

Loan types we assist with

All the loans you need — in one place

From buying your dream home to funding an emergency — here are the six loan products we help you with.

Home Loan

Buy, build, or renovate your dream home.

A home loan lets you purchase a ready-to-move or under-construction property with up to 75–90% financing of the property value. The property itself serves as collateral, enabling long tenures (up to 30 years) and the lowest interest rates in the retail lending space.

Interest rateFrom 8.50% p.a. (floating)

Loan amount₹10L – ₹5 crore+

TenureUp to 30 years

LTV ratioUp to 90% of property value

Tax benefitSec 24B + Sec 80C

✅ Best for: First-time homebuyers, existing home upgrade, or construction on owned land

🏠 Enquire about home loan ↗

No Collateral

Personal Loan

Instant funds for any purpose, no collateral needed.

A personal loan is an unsecured loan — no asset required as collateral. You can use the funds for any purpose: medical emergency, wedding, travel, home renovation, or debt consolidation. Approval is based primarily on your income and credit score.

Interest rate10.50% – 24% p.a.

Loan amount₹50,000 – ₹40 lakh

Tenure1 – 7 years

CollateralNone required

DisbursalAs fast as 24 hours

✅ Best for: Medical emergencies, weddings, travel, debt consolidation, or any urgent fund need

💳 Enquire about personal loan ↗

New & Used

Car Loan

Drive home your new or pre-owned car today.

Car loans let you finance up to 90% of the on-road price of a new vehicle, or up to 80% of the valuation for a used car. The vehicle serves as collateral, making rates lower than personal loans. Available for both salaried and self-employed individuals.

Interest rateFrom 8.75% p.a.

Loan amountUp to 90% of on-road price

Tenure1 – 7 years

For used carsUp to 80% LTV, higher rate

Processing fee0.5% – 2% of loan amount

✅ Best for: Purchasing a new or pre-owned 4-wheeler for personal or family use

🚗 Enquire about car loan ↗

Quick Approval

2-Wheeler Loan

Finance your bike or scooter with minimal paperwork.

Two-wheeler loans are among the easiest vehicle loans to obtain, with minimal documentation and very fast approval. Finance up to 95% of the on-road price of motorcycles, scooters, and electric two-wheelers from all major manufacturers.

Interest rateFrom 10.50% p.a.

Loan amountUp to 95% on-road price

Tenure6 months – 4 years

Approval timeOften same day

EV two-wheelers✅ Eligible for subsidy schemes

✅ Best for: Daily commuters, college students, first-time vehicle owners, and EV purchases

🛵 Enquire about 2-wheeler loan ↗

Smart Option

Loan Against Mutual Funds

Get liquidity without selling your investments.

Pledge your mutual fund units as collateral and get an overdraft facility — without redeeming your investments. Your units keep earning returns while you use the loan. Interest is charged only on the amount drawn, not the full limit, making this one of the most cost-efficient borrowing options.

Interest rate9% – 11% p.a. (overdraft)

LTV — equity MFUp to 50% of NAV

LTV — debt MFUp to 80% of NAV

Units continue to earn✅ Yes — returns accrue normally

Foreclosure chargeNil in most cases

✅ Best for: Investors who need short-term liquidity but don't want to disrupt their long-term investment portfolio

📈 Enquire about LAMF ↗

For Investors

Loan Against Shares

Unlock liquidity from your equity portfolio.

Pledge your listed equity shares as collateral and get an overdraft credit line. The credit limit is based on 50–75% of the market value of SEBI-approved shares. Like LAMF, you pay interest only on the drawn amount, and your shares remain in your demat account.

Interest rate10% – 12% p.a.

LTV ratio50–75% of share value

Eligible sharesSEBI-approved listed equities

Limit typeOverdraft (fluctuates with price)

Margin call risk⚠️ If share price falls sharply

✅ Best for: Long-term equity investors who need short-term capital without liquidating their portfolio

📊 Enquire about LAS ↗

Quick comparison

All loans at a glance — compare rates, amount & tenure

A side-by-side comparison of all six loan types to help you choose the right product for your need.

Loan Type	Interest Rate	Max Amount	Max Tenure	Collateral	Best For
🏠 Home Loan	From 8.50%	₹5 Cr+	30 years	Property	Buying / building a home
💳 Personal Loan	10.50–24%	₹40 lakh	7 years	None	Emergency / any purpose
🚗 Car Loan	From 8.75%	90% on-road	7 years	Vehicle	New / used car purchase
🛵 2-Wheeler Loan	From 10.50%	95% on-road	4 years	Vehicle	Bike / scooter purchase
📈 Loan vs MF	9–11%	80% of NAV	On demand (OD)	MF units	Short-term liquidity
📊 Loan vs Shares	10–12%	75% of value	On demand (OD)	Listed shares	Equity portfolio liquidity

💡

Pro tip: If you have existing mutual fund investments and need short-term funds, a Loan Against Mutual Funds (LAMF) is almost always cheaper and smarter than taking a personal loan — your investments keep growing while you access liquidity at a lower rate.

Plan your repayment

EMI calculator

Estimate your monthly EMI, total interest, and total repayment amount for any loan instantly. Actual rates and amounts are subject to lender approval.

🧮 Loan EMI Estimator

Loan type

Loan amount ₹30L

Interest rate (% p.a.) 8.50%

Tenure 20 yrs

₹26,006

Monthly EMI

Loan amount ₹30,00,000

Total interest payable ₹32,41,350

Total repayment ₹62,41,350

Interest / principal ratio 1.08×

💬 Discuss options with Sindhu ↗

Smart borrowing for investors

Loan Against Mutual Funds vs Loan Against Shares — which is better for you?

Both products let you access liquidity without selling your investments. Here's a detailed comparison to help you choose.

📈 Loan Against Mutual Funds (LAMF)

LAMF — Borrow against your MF portfolio

Pledge your equity or debt mutual fund units as collateral to get an overdraft facility. Units stay invested — NAV gains and dividends continue to accrue to you.

✅ Up to 50% of equity MF value / 80% of debt MF value
✅ Interest charged only on amount drawn (overdraft model)
✅ Units continue to earn market returns while pledged
✅ No redemption — SIP continuity maintained
✅ Rate typically 9–11% p.a. — far lower than personal loans
⚠️ LTV limit may be reduced if NAV falls significantly
⚠️ Applicable on direct and regular plans from most AMCs

💬 Ask about LAMF ↗

📊 Loan Against Shares (LAS)

LAS — Borrow against your stock portfolio

Pledge your listed equity shares held in your demat account as collateral for an overdraft credit line. Shares remain in your demat — dividends and bonuses continue.

✅ Up to 50–75% LTV on SEBI-approved shares
✅ Interest on drawn amount only — revolving credit line
✅ Dividends and bonus shares on pledged stocks continue
✅ No lock-in — repay and unpledge anytime
⚠️ Credit limit fluctuates daily with stock price movements
⚠️ Margin call if stock value drops below threshold — top-up required
⚠️ Not all stocks eligible — SEBI/lender-approved list applies

💬 Ask about LAS ↗

Who can apply

General loan eligibility criteria

Eligibility criteria vary by lender and loan type. These are general guidelines — we will assess your specific profile and recommend the right lender and product for you.

For salaried individuals

💼 Salaried applicant

Age: 21 – 60 years (at loan maturity)
Minimum monthly income: ₹20,000 – ₹25,000 (varies by city and lender)
Employment: Minimum 1–2 years in current job (6 months for some personal loans)
CIBIL score: 700+ recommended; 750+ for best rates
Documents: Aadhaar, PAN, salary slips (3 months), bank statements (6 months), Form 16
EMI obligations: Existing EMIs + new EMI should not exceed 50% of net income (FOIR)

For self-employed / business owners

🏢 Self-employed applicant

Age: 23 – 65 years (at loan maturity)
Minimum annual income: ₹3–5 lakh p.a. (as per ITR)
Business vintage: Minimum 2–3 years in current business
CIBIL score: 700+ recommended
Documents: Aadhaar, PAN, ITR (2–3 years), CA-audited financials, GST returns, bank statements
Property docs (for home loan): Sale deed, encumbrance certificate, building plan approval

Getting started

How to apply for a loan with us — 6 simple steps

We guide you through every step — from choosing the right lender to getting your disbursement.

Assess your need

Tell us the loan type, amount, and purpose. We'll calculate the EMI range and recommend the right product for your income and profile.

Check your CIBIL score

A score of 750+ unlocks the best interest rates. We'll help you understand your current score and suggest improvements if needed before applying.

Compare lenders

We compare rates, processing fees, and terms from multiple banks and NBFCs — and recommend the best fit for your profile.

Prepare documents

We provide a complete document checklist specific to your loan type and lender — reducing delays and rejection risk.

Submit & track

We assist with application submission, follow up with the lender on your behalf, and keep you updated at every stage.

Disbursement & beyond

Once approved, we help you review the loan agreement before signing. We're also here for balance transfers, top-up loans, and prepayment guidance.

💬 Start your loan journey ↗

Common questions

Frequently asked questions about loans

Clear answers to the questions we hear most often.

What documents do I need for a home loan?

For a home loan you typically need: identity proof (Aadhaar, PAN), address proof, 3–6 months salary slips or 2 years ITR for self-employed, 6 months bank statements, property documents (sale agreement, title deed, encumbrance certificate, approved building plan), and an employer certificate for salaried applicants. Exact requirements vary by lender and loan amount. We provide a complete checklist specific to your lender when you work with us.

What is the difference between a secured and unsecured loan?

A secured loan is backed by collateral — an asset the lender can seize if you default. Home loans (property), car loans (vehicle), and loans against mutual funds or shares (securities) are secured loans and carry lower interest rates because the lender's risk is reduced. An unsecured loan like a personal loan has no collateral — approval is based purely on your income and credit score, making rates higher (10.5–24%).

What is a Loan Against Mutual Funds and how does it work?

A Loan Against Mutual Funds (LAMF) lets you pledge your mutual fund units as collateral to get an overdraft facility without redeeming your investments. You can borrow up to 50% of equity fund value or 80% of debt fund value. Your units remain invested and continue to earn returns. Interest is charged only on the amount drawn — making it far cheaper than a personal loan. It's one of the smartest short-term borrowing options for investors.

What is EMI and how is it calculated?

EMI (Equated Monthly Instalment) is the fixed monthly amount you pay to repay a loan over its tenure. It consists of principal repayment and interest. The formula is: EMI = [P × R × (1+R)^N] / [(1+R)^N – 1], where P = loan amount, R = monthly interest rate (annual rate ÷ 12 ÷ 100), and N = number of monthly instalments. Use our EMI calculator above to estimate your monthly outflow for any loan type instantly.

Does taking a personal loan affect my CIBIL score?

Taking a personal loan causes a small temporary dip in your CIBIL score due to the hard inquiry and new credit. However, making consistent on-time EMI payments significantly improves your score over time as it demonstrates creditworthiness. Missing EMIs, on the other hand, sharply damages your score. Maintain a healthy EMI-to-income ratio (under 50%) and avoid applying for multiple loans simultaneously, as each hard inquiry reduces your score slightly.

Can I prepay or foreclose my loan without penalty?

For floating-rate retail loans (including home loans and car loans), RBI guidelines prohibit banks from charging prepayment or foreclosure fees. For fixed-rate loans, a foreclosure charge of 2–5% may apply. For personal loans from NBFCs, terms vary and foreclosure fees are common — typically allowed only after 6–12 EMIs. Always check the prepayment and foreclosure clause in your loan agreement before signing. We flag these terms for you during the advisory process.

What is a margin call in Loan Against Shares?

A margin call in Loan Against Shares (LAS) is triggered when the market value of your pledged shares falls significantly, causing the outstanding loan to exceed the permitted LTV (loan-to-value) ratio. When this happens, the lender asks you to either (a) repay part of the loan to bring the LTV back within limits, or (b) pledge additional shares as top-up collateral. If you fail to respond, the lender may sell your pledged shares to recover the outstanding amount. This is the key risk in LAS — you must monitor your portfolio value regularly.

The right loan for every
financial goal