Investors can borrow money against their stock portfolio, mutual fund investments, fixed deposits and savings insurance plans. Some companies even offer loans against employees' stock ownership plans (ESOPs). The required custody of investments is the key barrier to taking out a loan as banks often require the investments to be in their custody. However, fintech companies are working on solutions that may eliminate this requirement, and loans may be lent by insurance companies, non-banking financial companies and banks at varying rates.
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