Loan against
your securities.
Pledge the shares and funds already in your demat account to raise a loan against them — without selling a single unit.
Your holdings, without selling them.
Shares stay in your demat and keep earning dividends. You pay interest only on what you draw.
- Interest for Period
- ₹13,562
- Repayment Amount
- ₹5,13,562
- LTV-backed Coverage
- 50.00%
An illustration on the figures above, not a quote and not advice.
What LAS actually is
Loan Against Securities is a facility where stocks and mutual funds held in your demat account are pledged to raise a loan against them. It works the same way as a loan against gold or against property — the asset stays yours, and it secures the borrowing.
The point is that you do not have to sell. A holding you would rather keep — because of the thesis, or the capital gains, or both — can fund a short-term need instead of being liquidated to meet it.
Before you pledge anything
A secured loan against a volatile asset behaves differently from one against a fixed one. These four points are the whole of it.
If the value of the pledged securities drops, the lender can ask you to add collateral or repay part of the loan. That demand arrives at exactly the worst moment — when markets are down.
You do not borrow against the full market value. The lender discounts it, and the discount is larger for more volatile holdings.
Most lenders allow prepayment, but some charge a penalty. Read that clause before signing, not after.
LAS is a good facility and a poor habit. Borrow against a portfolio only where you know what repays it and by when.
Understand Loan Against Securities properly.
How it works, the types, both sides and the comparisons — for when you want the full picture.
Liquidity without a sale
Because the loan is secured against listed securities, it prices well below a personal loan or a credit line.
The securities remain yours throughout. Any appreciation while the loan is outstanding is still yours.
No liquidation, no settlement wait, no re-entry decision on the other side.
The facility does not dictate the purpose the way a home or vehicle loan does.
Eligible securities
The lender maintains an approved list, and applies a haircut to the value of whatever is pledged.
Shares of publicly traded companies that appear on the lender’s approved list.
Units held in demat form, subject to the scheme being approved as collateral.
ETFs on the approved list, held in your demat account.
Government securities and non-convertible debentures, where accepted.
Loan Against Securities, answered.
A facility wherein stocks and mutual funds in the demat account can be pledged to avail a loan against them. LAS is similar to a loan against gold or a loan against property.
Generally a valid and active securities account, a minimum age (typically 18+), a good credit score, and high-quality securities to offer as collateral. The specific requirements vary by lender.
Lower interest rates than most unsecured loans, quick access to funds without liquidating your investments, and flexibility in how the money is used. You also continue to benefit from any future growth in the value of the securities.
Yes, LAS can usually be repaid early. Some lenders charge a prepayment penalty or fee, so review the terms of your loan agreement to understand any charge for early repayment.
Equity shares of publicly traded companies on the lender’s approved list, mutual funds, exchange-traded funds, demat shares, and bonds such as government securities and NCDs.
It can be, if you need access to funds quickly and hold a strong portfolio. Weigh it against the risks — market volatility and potential margin calls — and make sure you have a clear repayment plan. Always review the terms carefully before deciding.
Borrow against what you already own.
Tell us what you hold and we will tell you what can be pledged, and at what haircut.