Need Cash but Don’t Want to Sell Your Investments? A Loan Against Securities Might Be the Perfect Solution.
A Loan Against Securities is one of the smartest ways to unlock instant funds without selling your investments. Whether you’re managing a business requirement, dealing with an unexpected emergency, or planning a big purchase, this facility gives you access to liquidity while your investments continue to grow.
At Loan Bazaar, we help you make informed financial choices. In this blog, we explain how a loan against securities works, its key benefits, and how you can apply for it.
What is a Loan Against Securities?
A Loan Against Securities (LAS) is a credit facility where you pledge your financial assets–like shares, mutual funds, or insurance policies-as collateral to borrow funds. You don’t have to sell or break your investments. Instead, you continue to enjoy returns on them while gaining access to immediate credit.
Banks and NBFCs offer LAS with flexible limits–usually up to 50% of the asset’s market value–and funds can be disbursed in as little as 24–48 hours.
🔗 View RBI’s official LAS guidelines
Why Consider a Loan Against Securities?
✅ Retain Your Investments
You don’t have to sell long-term investments during short-term cash crunches.
✅ Quick & Easy Access to Funds
Most lenders offer quick approvals and disbursement with minimal documentation.
✅ Attractive Interest Rates
Since it’s a secured loan, LAS comes at a lower rate than personal loans, starting from around 9% p.a.
✅ Flexible Withdrawals
Draw only what you need from the approved limit and pay interest only on the amount used.
✅ No End-Use Restrictions
Use the funds for anything—from travel to tuition to business expansion.
Best Use Cases for LAS
- Paying children’s education fees
- Meeting medical emergencies
- Funding business working capital
- Avoiding early redemption of long-term investments
- Managing travel, wedding, or home renovation expenses
What Types of Securities Are Accepted?
Here are some financial instruments you can pledge to get a loan against securities:
- Listed Equity Shares (NSE/BSE)
- Mutual Funds (Equity or Debt)
- Life Insurance Policies (based on surrender value)
- Fixed Maturity Plans (FMPs)
- Government Bonds and Non-Convertible Debentures (NCDs)
- Exchange-Traded Funds (ETFs)
Who Can Apply for a Loan Against Securities?
At Loan Bazaar, we assist:
- Salaried professionals
- Self-employed individuals
- Business owners
- HUFs and trusts
How to Get a Loan Against Securities Through Loan Bazaar
Getting a loan against securities is fast and hassle-free with us:
- Choose your securities to pledge (shares, mutual funds, etc.)
- Submit your application along with basic KYC documents.
- Our Specialists will find the ideal lending institution.
- Get your credit limit and access funds instantly.
- Repay as you use–like a revolving overdraft.
Interest Rates and Repayment Terms
Interest rates generally range from 9% to 13% p.a., and are charged only on the used limit. You can opt for daily, monthly, or quarterly interest servicing depending on your lender’s terms.
Loan tenure usually ranges from 1 month up to 12 months, with an option to renew.
Important: Monitor your pledged securities. If market values drop, you may face a margin call and have to pledge additional assets.
Loan Against Securities vs. Personal Loan: What’s Better?
| Feature | Loan Against Securities | Personal Loan |
|---|---|---|
| Collateral Needed | Yes (Shares/MFs etc.) | No |
| Interest Rate | Lower (9–13% p.a.) | Higher (11–24% p.a.) |
| Processing Time | Fast (1–2 Days) | Moderate (2–5 Days) |
| Impact on Investments | None | Not applicable |
| Cibil Check | Not Required | Not Required |
If you have investments and need short-term liquidity, LAS is the more efficient and cost-effective choice.
Things to Keep in Mind
- The value of your securities fluctuates with the market
- LAS is ideal for short-term needs, not long-term borrowing
- Always read the fine print before signing the pledge agreement
Conclusion: Maximise Liquidity Without Sacrificing Growth
A Loan Against Securities is a smart way to unlock instant funds without selling your investments. You don’t have to disrupt your wealth creation strategy to meet urgent financial needs. With competitive interest rates, quick access, and flexible repayment, LAS is a powerful credit option.
At Loan Bazaar, we help you find the best LAS offers tailored to your portfolio and financial goals.