What Is A Loan Against Securities?

Loan Against Securities (LAS) is a kind of overdraft facility that allows you to pledge your securities as collateral to avail a loan. It is an easy way to receive a line of credit without selling your securities during a market downturn. Now leverage your investment capacity and receive a loan up to 80 per cent on a wide range of financial instruments.

Enjoy instant liquidity without any foreclosure charge and pay interest only on the amount you have used. Loan against securities is a unique financial service that allows you the dual advantage of maintaining ownership on your investment and at the same time reaping their benefits.

Types Of Collaterals For LAS

  • DEMAT and physical shares
  • Non-convertible debentures (NCD)
  • LIC policies
  • NABARD and UTI Bonds
  • Mutual fund units (not exempt from capital gain tax)
  • National Savings Certificate (NSC)
  • Kisan Vikas Patra (KVP)
  • Gold deposit certificates

Why Use Loan Against Securities?

Using loan against securities offers you a wide range of benefits.

  • You retain the ownership on your investment
  • You continue to receive the benefits like dividend and bonus on your investment
  • Loan against securities allows you to receive a high loan value, up to 80 percent of collateral deposited
  • Quick eligibility, without an additional document or proof of income, and easy renewal
  • Add instant liquidity, improves your investment potential manifold
  • Flexible repayment facility and penalty-free foreclosure
  • With an easy online application process, now apply for LAS anytime. There is no need to visit a branch

Features Of Loan Against Shares

Loan against shares is a secured form of loan forwarded against the securities held in your account. Following are the key features of loan against securities.

  • Volume of the loan: Loan amount can go up to 80 percent of the collateral value.
  • Loan against securities interest rate: The interest rate is between 12 to 16 percent.
  • Tenure: The loan tenure is typically one year, but you can also foreclose or extend it.
  • Loan against shares eligibility: Indian resident individuals, HUFs (Hindu Undivided Families), NRIs, private and partnership firms, sole proprietorship, and public limited companies are eligible to receive a loan against securities.
  • Charges: There are initial processing fees, including AMC, stamp duty, and the like. Also, there could be additional costs in case of an overdraft.


  • Buy shares without selling long-term investments
  • Investment opportunities
  • Easier and faster processing
  • Loan with easy renewal facility
  • Dividends and other corporate benefits like bonus
  • Appreciation in securities value allows boost in drawing power