Wealthy Indians increasingly taking loans against shares and mutual funds
Business
With the stock market on a roller coaster, more wealthy Indians are taking loans against their shares and mutual funds to get quick cash, without having to sell at a loss.
This move lets them stay invested for future rebounds while still meeting urgent needs or jumping on fresh opportunities.
Experts urge caution over margin calls
Lenders like Bajaj Finserv and Tata Capital have seen big jumps in these types of loans this year.
But there's a catch: interest rates hover around 9.5% to 10.5%, and if the market drops further, borrowers could face margin calls and risk losing their investments.
Experts suggest playing it safe, borrowing only what you need, and sticking with large, liquid stocks to avoid nasty surprises.