LOAN AGAINST SECURITIES

Borrow Against Your Shares, Mutual Funds and Bonds — Without Selling Them

Pledge your existing investment portfolio to access liquidity at low rates. Retain ownership and upside while meeting short-term financial needs.

From 9%

p.a. Interest

Up to 60%

of Portfolio Value

Same-Day

Sanction

LAS Snapshot

Portfolio ValueRs.50 Lakhs

Eligible LimitRs.30 Lakhs

Interest Rate9.5% p.a.

RepaymentMonthly interest

Holdings RetainedDividends continue

KEY FEATURES

Why Use Loan Against Securities?

Continue Earning on Your Investments

Your pledged shares and mutual funds remain invested. Dividends, interest, and capital appreciation continue to accrue to your account even while the loan is active.

Significantly Lower Cost Than Personal Loans

LAS rates of 9–12% are far lower than personal loan rates of 14–24%. For investors with a strong portfolio, this is the smartest short-term liquidity solution.

Revolving Overdraft Structure

LAS works as an overdraft limit. You draw what you need, repay when convenient, and redraw again. Interest is charged only on the utilized amount.

Online Pledging Process

Portfolio pledging is done digitally through CDSL/NSDL eCAS. Most approved brokers and depository participants support this within minutes with no physical paperwork.

Wide Range of Accepted Securities

Approved list includes equity shares from NSE/BSE, mutual fund units, ETFs, bonds, debentures, and sovereign gold bonds. Coverage varies by lender.

No Impact on Long-Term Goals

Unlike redemption, pledging does not disrupt your wealth compounding. Your long-term portfolio stays intact while you meet short-term needs at low cost.

ELIGIBILITY

LAS Eligibility

Available for individuals, HUFs, and corporate entities holding approved securities in demat accounts with CDSL or NSDL.

✓Resident Indian or NRI (NRI with repatriable or non-repatriable demat account)
✓Securities must be in an individual or joint demat account
✓Minimum portfolio value typically Rs.1 lakh (varies by lender)
✓Securities must be on the lender's approved pledge list
✓Clean CIBIL score (no active defaults or NPA)
✓Valid PAN and Aadhaar for KYC

Documents Required

✓PAN Card and Aadhaar Card
✓Demat account statement (latest)
✓Bank account (for loan disbursal and repayment)
✓KYC — existing relationship with CDSL/NSDL DP
✓Email / mobile registered with demat account
✓Corporate resolution if borrowing entity is a company

THE PROCESS

How It Works

Share Portfolio Details

Provide your demat account details and a list of securities you wish to pledge. We check eligibility against lender-approved lists immediately.

Sanction and Limit Offer

Based on approved securities and applicable haircuts, lender issues a limit sanction typically on the same day for online applications.

Digital Pledging on CDSL/NSDL

You pledge securities digitally from your demat account. This takes 10–15 minutes with an OTP confirmation. No need to move securities to a new account.

Overdraft Limit Activated

Your overdraft limit is activated in your linked bank account. Draw funds as needed, repay when convenient, repeat.

Frequently Asked Questions

Do I lose ownership of my shares when I pledge them?

No. Pledging does not transfer ownership. You remain the beneficial owner. Dividends, bonus shares, rights issues, and corporate actions continue in your name. Shares are moved to the lender's OWN account only if you default and they invoke the pledge — which is the last resort.

What happens if the market value of pledged securities falls?

If the value of your pledged portfolio falls below the required margin (typically a 40–50% haircut), the lender issues a margin call. You must either repay a part of the outstanding or pledge additional securities to restore the required cover ratio.

Can I sell pledged shares if the market goes up?

You must first request the lender to release the pledge on specific shares. This is done by making a proportional repayment or by pledging substitute securities. Once released, you can sell freely. This process typically takes 1 working day.

What is the typical haircut applied on mutual funds?

Equity mutual funds typically attract a 40–50% haircut meaning you can borrow up to 50–60% of the current NAV. Debt funds have lower haircuts (20–30%) because of lower volatility. Liquid and overnight funds may have haircuts as low as 10% as they are near-cash instruments.

Is Loan Against Securities better than redeeming my mutual funds?

In most cases yes — especially if your MF holding is in growth or has low exit load. Redeeming triggers capital gains tax and breaks compounding. LAS at 9–11% cost versus the long-run return expectation of 12–15% from equity MFs means you are arbitraging the difference. Redeem only if the loan is very large or very long-term.