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Loan Against Securities

Loan Against Securities

Never think about selling your shares or mutual funds to meet a financial emergency! 

A Loan against securities is a credit facility offered by various banks and financial institutions that allow you to instantly raise money against your shares without selling them.

Benefits of Loan Against Securities

  • Instant disbursal facility through online application
  • Pay interest only on the amount you use
  • Low-interest rate and processing charges
  • Set your own loan limits (minimum Rs 1 lakh and maximum Rs 20 lakh)
  • Choose the shares and mutual funds you want to pledge, and enjoy the flexibility to change them in the future
  • No prepayment penalty
  • High loan to collateral value

What are loan against securities (LAS)?

A Loan Against Securities

is a kind of a credit facility where you will be required to pledge your shares, mutual funds or life insurance policies as collateral to the bank against your loan amount.  

How does loans against securities work?

Typically, a overdraft loan against securities are provided as an overdraft facility in your account after you have deposited your securities. This allows you to withdraw money from your account and pay interest component only on the loan amount that used by you and for the period you use it.

Instance, if you avail a loan against shares of Rs. 5 lakhs. Let's say, you withdraw 1 lakh and deposit the same withdrawn amount to your in the next month. In such a case, you are liable to pay only interest for one month on Rs. 5 lakhs. 

However, the loan eligibility will depend on the value of the securities you offer as collateral/ security.

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