What is Loan against Securities?


LAS (Loan against Securities) refers to loan availed by pledging/assigning the liquid securities (Shares, Bonds, Life Insurance Policies etc.) held by an individual/firm. This facility gives the customer immediate liquidity without having to sell the securities.

Who can avail Loan against Shares?


Loan against Shares facility is available for Individuals (Salaried &Self Employed), Partnership Firm &Private Limited Companies. This facility is not available for NRI’s and Minors.

What are the Lending Rates?


  • The equity shares offered as security should be fully paid. Preference shares and locked in shares are not acceptable as security.
  • The shares offered as security must be in demat form.
  • The shares should be on the approved list as applicable from time to time
  • Customer has to hold/open a current account in the approved bank
  • What security/collateral does a borrower need to provide?


    No additional security/collateral need to be provided, apart from the securities against which the loan is granted.

    How much margin has to be maintained?


    Minimum 40% of Market Value varying on Security Pledged. However this ratio changes depending on the bank which offers the product.

    What is the tenure of the loan?


    Generally the tenure for LAS loan is 12 months renewable as per terms and conditions.

    What are the purposes for which Loan against Shares be availed?


    Long Term Investment in Capital Market
    Purchase/Renovation of House
    Purchase of Vehicle
    Travel/Holiday Wedding/Education
    Any other acceptable requirement

    Can I do a prepayment of Loan against Securities facility?


    Customer can close any tranche in part or in full. Interest would be charged pro rata for the outstanding amount There are no charges for closure of the tranche availed After the loan has been repaid, the pledgor will submit an instruction to its DP to initiate the closure of pledge. There are no charges on prepayment of loan.