When financial needs arise, selling your long-term investments is not always the best choice. What if you could get instant liquidity while still enjoying the growth of your shares and mutual funds? That’s where a Loan Against Securities (LAS) comes in – a smart way to leverage your portfolio without disturbing your investments.
What is Loan Against Securities?
Loan Against Securities allows you to pledge your shares, mutual funds, bonds, or ETFs as collateral to get an instant loan from banks or NBFCs. The best part? Your investments remain intact, continue to earn returns, and you get the cash you need – all at attractive interest rates.
With top lenders, you can now avail a loan amount up to ₹10 Crore, making it a powerful tool for both individuals and businesses.
Key Features of Loan Against Securities
✔ Loan up to ₹10 Crore – High-value funding based on your portfolio size.
✔ No CIBIL Score Required – Loan eligibility depends on your securities, not your credit history.
✔ 100% Digital Process – From pledging to disbursal, everything is quick and paperless.
✔ No Prepayment Charges – Repay whenever you want without extra cost.
✔ Retain Ownership of Investments – Continue to benefit from dividends, bonuses, and market growth.
Why Choose Loan Against Securities?
1. Faster Access to Funds – Unlike traditional loans, LAS is approved within hours since securities are digitally pledged.
2. Flexible Usage – Funds can be used for business expansion, personal needs, medical expenses, education, or even debt consolidation.
3. Cost-Effective – Interest rates are lower compared to personal loans or credit cards.
4. Smart Financing – Instead of liquidating assets and losing potential future gains, you can borrow against them.
Example
Suppose you have a portfolio worth ₹2 Crore in mutual funds and shares. By pledging them digitally, you can instantly access up to ₹1.5–₹1.6 Crore (depending on lender’s margin) as a loan – without selling a single unit of your investment.
Who Can Apply?
Salaried professionals
Self-employed individuals
Business owners
Investors holding eligible securities
FAQs on Loan Against Securities
Q1. Is a CIBIL score mandatory for LAS?
No. Loan Against Securities is sanctioned based on the value of your pledged shares or mutual funds, not your credit history.
Q2. What types of securities can be pledged?
Equity shares, mutual funds, bonds, ETFs, and sometimes insurance policies depending on the lender.
Q3. How quickly can I get the loan?
With digital pledging, the loan can be approved and disbursed within a few hours to a couple of days.
Q4. Can I prepay my LAS anytime?
Yes, there are usually no prepayment or foreclosure charges, giving you complete repayment flexibility.
Q5. Will I still get dividends or bonuses on pledged shares?
Yes. You continue to enjoy ownership benefits like dividends, interest, and bonuses on your investments.
