What is Loan Against Securities (LAS)
Loan Against Securities (LAS) is a flexible and efficient financial solution that allows you to raise funds without having to sell your investments. It helps you unlock the value of your financial assets — such as shares, mutual funds, bonds, ETFs, insurance policies, or government securities — by using them as collateral to borrow money from a bank or financial institution.
Instead of liquidating your investments and losing potential future gains, you can pledge them as security and get a loan to meet your immediate financial needs such as business expansion, education, travel, property purchase, or emergency expenses. This way, you maintain your investment portfolio while enjoying the benefit of liquidity.
The loan amount you can get depends on the market value and type of securities you pledge. Typically, lenders offer 50–80% of the security’s market value as a loan. You are charged interest only on the amount utilized, making LAS a cost-effective borrowing option.
💡 Key Benefits of Loan Against Securities (LAS):
- Quick Access to Funds:
Get immediate liquidity without selling your valuable investments.
- Retain Ownership:
Continue to earn dividends, interest, or capital appreciation from your pledged securities while using the funds for your needs.
- Flexible Repayment Options:
Repay the loan easily as per your financial comfort — with options for overdraft or regular EMI.
- Lower Interest Rates:
Interest rates are generally lower than those on personal loans or credit cards, as the loan is secured by your assets.
- No Prepayment Penalty (in most cases):
You can repay the borrowed amount anytime and release your securities without any extra charges.
- Multi-Purpose Usage:
Use the funds for any purpose — personal, professional, or business — without restrictions.
