Loan Against Securities
Unlock the Value of Your Investments Without Selling Them
Loan Against Securities (LAS) is a smart way to meet your short-term financial needs without liquidating your valuable investments. It allows you to borrow funds by pledging your financial securities like shares, mutual funds, bonds, insurance policies, or other eligible instruments as collateral.
Instead of selling your investments in times of need, LAS lets you retain ownership while enjoying instant liquidity.
Key Features
Quick Access to Funds
Get funds swiftly without disrupting your long-term investment goals.
Retain Ownership
You continue to earn dividends, interest, and capital gains on your pledged securities.
Overdraft Facility
Operates like an overdraft-interest is charged only on the amount utilized and for the time it’s used.
Transparency
Generally lower than unsecured loans, as the loan is backed by collateral.
Eligible Securities
- Equity shares listed on approved stock exchanges
- Mutual fund units (equity and debt)
- Bonds and debentures
- Insurance policies (surrender value)
- Government securities and National Savings Certificates (NSC)
Benefits of LAS
- No need to break long-term investments
- Faster processing and disbursal
- Interest charged only on used amount
- Continued benefit from investment growth
- Reusable credit facility (like an overdraft)
Who Should Consider LAS?
- Investors seeking short-term liquidity without selling their portfolio
- Business owners in need of working capital
- Individuals needing funds for personal or professional commitments
- People looking for faster alternatives to traditional loans
Important Considerations
- Market volatility may affect the value of your pledged securities.
- If the value falls, you may be asked to top-up the collateral or repay part of the loan.
- Regular monitoring of your pledged assets is advisable.
- Ensure the terms and charges (processing fees, foreclosure, etc.) are clearly understood.
Loan Against Securities offers a smart way to raise funds while keeping your investments intact. Whether you’re facing a temporary cash crunch or planning for future opportunities, LAS provides flexibility, speed, and financial control-all without disturbing your long-term wealth-building strategies.