Unlock Funds Without Selling Your Investments: Loan Against Securities Explained

Need urgent funds but don’t want to liquidate your investments? A Loan Against Securities (LAS) can be an ideal solution. This facility allows you to access quick funds by pledging your financial assets–without having to sell them. Whether it’s for a business need, a medical emergency, or a big-ticket purchase, LAS gives you liquidity while your investments continue to grow.

What is a Loan Against Securities?

A Loan Against Securities is a secured credit facility where you can pledge financial instruments such as equity shares, mutual funds, insurance policies, and more to get a loan. You retain ownership and returns on your investments, while gaining immediate access to funds.

Financial institutions typically offer up to 50% of the asset’s market value, with funds disbursed in as little as 24 to 48 hours.

📌 Check RBI’s official guidelines for Loan Against Securities.

Why Choose a Loan Against Securities?

✔ Preserve Your Portfolio
No need to sell long-term investments for short-term cash needs.

✔ Quick Disbursal
Minimal paperwork and fast processing by most banks and NBFCs.

✔ Lower Interest Rates
As a secured loan, LAS interest rates are typically lower than unsecured personal loans–starting from around 11% p.a.

✔ Flexible Withdrawals
Withdraw funds as needed from the sanctioned limit and pay interest only on the amount used.

✔ No Usage Restrictions
Use the funds for anything—education, healthcare, travel, or business expansion.

Eligible Securities for LAS

You can pledge a variety of financial instruments to avail a loan, including:

• Listed Equity Shares (NSE/BSE)
  
  
• Mutual Funds (Equity or Debt)
  
  
• Life Insurance Policies (based on surrender value)
  
  
• Fixed Maturity Plans (FMPs)
  
  
• Government Bonds and NCDs
  
  
• Exchange-Traded Funds (ETFs)
  
  

Your loan eligibility depends on the market value, liquidity, and risk profile of the pledged securities.

Ideal Use Cases for LAS

• Paying education fees
  
  
• Managing medical emergencies
  
  
• Funding business working capital
  
  
• Avoiding premature redemption of investments
  
  
• Covering travel, wedding, or home renovation expenses
  
  

Who Can Apply?

Individuals and entities eligible for LAS include:

• Salaried professionals
  
  
• Self-employed individuals
  
  
• Business owners
  
  
• Trusts and HUFs
  
  

Requirements include valid KYC documents, ownership of eligible securities, and access to demat or physical certificates. Typically, applicants should be between 21 and 65 years of age.

How to Apply for Loan Against Securities

The process to avail LAS is simple and efficient:

1. Choose the securities you want to pledge.
   
   
2. Submit a loan application with KYC documents.
   
   
3. The lender evaluates and sanctions a credit limit.
   
   
4. Access funds quickly—often within 1–2 working days.
   
   

Repay flexibly, similar to an overdraft facility.

Interest Rates & Repayment Terms

• Interest Rate: Typically ranges from 9% to 13% p.a., charged only on the utilized amount.
  
  
• Repayment Frequency: Options include daily, monthly, or quarterly interest payments.
  
  
• Loan Tenure: Generally ranges from 1 to 12 months, with renewal options.
  
  

⚠️ Important: Market fluctuations can trigger margin calls–borrowers may need to pledge more securities if values drop.

Loan Against Securities vs. Personal Loan

If you have investments and need short-term liquidity, LAS is a more affordable and strategic option.

Things to Remember

• The market value of pledged securities may fluctuate.
  
  
• LAS is suited for short-term needs, not long-term borrowing.
  
  

Read the loan agreement carefully before signing.

Conclusion: Smart Credit Without Sacrificing Growth

A Loan Against Securities helps you unlock instant funds while letting your investments grow uninterrupted. With competitive interest rates, flexible usage, and quick processing, it’s a smart alternative to traditional personal loans.

Looking to explore secured credit options? Use our Loan Against Securities EMI Calculator to compare repayment plans, interest rates, and eligibility across lenders—all in one place.

🔍 Calculate your EMI now and make informed financial decisions!