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Loan Against Securities
Loan Against Securities
Unlock the hidden liquidity in your investment portfolio — shares, mutual funds, bonds, or insurance policies — without selling a single unit. Get instant credit at competitive rates while your investments continue to grow.
Overview
Loan Against Securities Services
About Loan Against Securities
A Loan Against Securities (LAS) is a secured credit facility that allows you to pledge your financial assets — such as listed equity shares, mutual fund units, government bonds, debentures, ETFs, or insurance policies — as collateral to obtain funds. Unlike selling your investments, an LAS lets you retain ownership and continue to earn dividends, interest, and capital appreciation while accessing the liquidity you need.
LAS is one of the most cost-effective borrowing options available, with interest rates significantly lower than personal loans. It is ideal for meeting short-term liquidity needs such as business requirements, medical emergencies, education expenses, or any personal financial goal — without disrupting your long-term investment strategy.
- Pledge shares, MF units, bonds, ETFs, or insurance policies without selling them
- Continue to earn dividends, interest, and capital gains on pledged securities
- Interest rates significantly lower than personal loans or credit cards
- Overdraft facility — pay interest only on the amount utilised
- Quick disbursement — funds credited within 24–48 hours of pledge
- Flexible repayment — revolving credit line with no fixed EMI structure
Key Features
- Loan amount up to 50–80% of the market value of pledged securities (LTV varies by asset type)
- Overdraft / revolving credit line — draw and repay as per need
- Pay interest only on the amount utilised, not the sanctioned limit
- Investments remain in your name; ownership is not transferred
- Dividends and bonus shares on pledged equity continue to accrue to you
- Top-up facility as portfolio value increases
- Online pledge and de-pledge facility through CDSL / NSDL
- Competitive interest rates starting from 9% p.a.
Eligibility Criteria
Individual / Retail Investor
- Age: 18–75 years
- Resident Indian or NRI (select lenders)
- Valid Demat account with CDSL / NSDL
- PAN Card mandatory
Corporate / HUF / Partnership
- Registered business entity in India
- Demat account in entity name
- Authorised signatory documentation
- Board / Partner resolution required
Note: Eligible securities include listed equities (in approved stock list), equity mutual funds, debt mutual funds, government bonds, PSU bonds, ETFs, and surrenderable insurance policies. The loan-to-value (LTV) ratio differs by asset type — typically 50% for equities and up to 80% for debt MFs / bonds.
Required Documents
📄 Identity & KYC
- PAN Card (mandatory)
- Aadhaar Card
- Passport / Voter ID / Driving License
🏠 Address Proof
- Aadhaar Card
- Utility bills (electricity, water, gas)
- Bank statement / Passport
📊 Securities / Demat Documents
- Latest Demat account statement
- Holding statement for MF units (CAS)
- Bond / debenture certificates
- Insurance policy documents (if applicable)
🏦 Bank & Financial Documents
- Last 6 months bank statement
- Cancelled cheque (for disbursement account)
- ITR (last 1 year, if available)
🏢 Corporate / Entity Documents
- Certificate of Incorporation / GST certificate
- MOA & AOA / Partnership deed
- Board resolution / authority letter
🖊️ Other Documents
- Passport size photographs
- Completed LAS application form
- Pledge instruction form (CDSL/NSDL)
Eligible Securities — LTV Ratios
The loan amount you receive depends on the type of securities you pledge. Higher-quality, lower-volatility assets attract better loan-to-value ratios:
📈 Listed Equity Shares
- LTV: Up to 50% of market value
- Shares in SEBI-approved pledge list
- Dividends continue to accrue to you
🏦 Mutual Fund Units
- Equity MFs: LTV up to 50%
- Debt / Liquid MFs: LTV up to 80%
- Pledge via CAMS / KFintech portals
🏛️ Government & PSU Bonds
- LTV: Up to 80–90% of face value
- Sovereign / AAA-rated bonds preferred
- Interest income continues on pledged bonds
📋 Debentures & NCDs
- LTV: Up to 70–75% (rated instruments)
- Listed NCDs on NSE / BSE eligible
- Subject to lender’s approved issuer list
🛡️ Insurance Policies
- LTV: Up to 85–90% of surrender value
- Traditional LIC / ULIP policies eligible
- Policy must have a minimum surrender value
📊 ETFs & Index Funds
- LTV: Up to 50–60% depending on index
- Gold ETFs, Nifty 50 ETFs eligible
- Held in Demat form required
Important: LTV ratios are subject to market fluctuations. If the portfolio value falls below the minimum required level, a margin call is issued. Maintaining a buffer above the minimum pledge value helps avoid forced liquidation of securities.
LAS Application Process
- 1Portfolio Assessment — Submit your Demat holding statement or CAS. Our advisor reviews your portfolio and calculates the eligible loan amount based on LTV ratios applicable to each security.
- 2Application & KYC — Complete the LAS application form with KYC documents. A credit check is conducted (credit score is less critical for LAS since it is fully secured).
- 3Pledge of Securities — Securities are pledged online via CDSL / NSDL e-pledge facility or through the lender’s portal. No physical transfer of securities takes place.
- 4Sanction & Overdraft Activation — The lender sanctions an overdraft limit against the pledged portfolio. The credit line is activated typically within 24–48 hours.
- 5Funds Utilisation — Draw funds as needed from the overdraft account. Interest is charged only on the amount utilised and for the duration it is used.
- 6Repayment & De-pledge — Repay at any time. Upon full repayment, the pledge lien is released and your securities are fully unencumbered again.
Why Choose Us
25+ bank & NBFC partnerships for best LAS rates
Funds credited within 24–48 hours of pledge
Portfolio continues to grow while pledged
Minimal documentation & online pledge process
Pay interest only on amount utilised
Dedicated LAS advisors for portfolio review
Apply Now
Loan Against Securities Enquiry Form
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LAS Enquiry
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Frequently Asked Questions
What is a Loan Against Securities (LAS)?
A Loan Against Securities is a secured credit facility where you pledge your financial assets — shares, mutual funds, bonds, debentures, ETFs, or insurance policies — as collateral to borrow funds. Unlike selling, you retain ownership and continue to earn returns on pledged securities while accessing the liquidity you need.
What securities can be pledged for an LAS?
Listed equity shares (in the lender’s approved list), equity and debt mutual fund units, government bonds, PSU bonds, debentures, NCDs, ETFs, gold ETFs, and traditional/ULIP insurance policies can be pledged. The lender maintains an approved list of securities eligible for pledge.
How much loan can I get against my securities?
The loan amount depends on the Loan-to-Value (LTV) ratio applicable to each security type. Typically: equity shares — up to 50% of market value; equity MF units — up to 50%; debt MF units — up to 80%; government bonds — up to 85–90%; insurance policies — up to 85–90% of surrender value.
Will I lose ownership of my securities when I pledge them?
No. Pledging does not transfer ownership of your securities. They remain in your Demat account with a lien marked by the lender. You continue to receive dividends, bonus shares, and capital gains. The lien is released once the loan is fully repaid.
What is the interest rate for a Loan Against Securities?
LAS interest rates are significantly lower than personal loans, typically ranging from 9% to 13% per annum depending on the lender, securities pledged, and creditworthiness. Since LAS is offered as an overdraft, you pay interest only on the amount actually utilised.
What happens if the value of my pledged securities falls?
If the market value of your pledged securities falls below the required margin (i.e., the LTV threshold is breached), the lender will issue a margin call. You will need to either pledge additional securities, deposit cash, or partially repay the loan to restore the required margin. Failing to do so may result in the lender liquidating a portion of the pledged securities.
How is LAS different from selling my investments?
When you sell investments, you permanently exit your position and lose all future gains, dividends, and compounding benefits — and may also incur capital gains tax. With LAS, you retain your position and continue to benefit from the portfolio’s performance. You simply pay a small interest cost to access liquidity without disrupting your long-term investment plan.
Is there a fixed EMI for repaying an LAS?
No. LAS is typically structured as an overdraft or revolving credit line with no fixed EMI. You can repay any amount at any time. Interest is calculated daily on the outstanding balance and debited monthly. This gives maximum flexibility in managing your cash flows.
How quickly can I get the loan amount after pledging?
Once the pledge is confirmed via the CDSL/NSDL e-pledge system and the lender activates the credit line, funds are typically available within 24–48 business hours. For some lenders with digital processes, the timeline can be even shorter — same day in certain cases.
What is the minimum portfolio value required for an LAS?
Most lenders require a minimum pledged portfolio value of ₹1–5 Lakhs to sanction an LAS. Minimum loan amounts typically start at ₹50,000. There is usually no upper cap on the loan amount, which is determined purely by the LTV-adjusted value of the securities pledged.