Rs. 16 Lakh Loan - Features, Eligibility and How to Apply

Unsecured loans may be quick, but they are often expensive and rigid. A Rs. 16 lakh loan through a personal loan might cost you significantly more in interest and EMI pressure. Here’s why LAS is a smarter alternative:
 

• Lower interest rates: Typically starts at 8% - 15% vs. unsecured loans where the interest rate is higher.
• Minimal documentation: You usually just need KYC and investment statements.
• Faster disbursal: Funds can be released in 24–48 hours* with pledged assets.
• No income proof required: Your investment acts as your financial strength.
• No foreclosure penalties: Many LAS products offer zero charges for early closure.

Get better rates and more flexibility with a loan backed by your own investments. Apply now
 

Loan to Value (LTV) is one of the most important factors in a Loan Against Securities (LAS). It determines how much loan amount you can get based on the current market value of the investments you pledge. Every security type, like mutual funds, shares or insurance has its own LTV limit.
 

• Up to 90% on mutual funds: If your MF portfolio is worth Rs. 21.5 lakh, you could borrow up to Rs. 16 lakh based on the lender’s 90% LTV rule.
• Shares offer around 50% LTV: Due to higher market volatility, shares generally fetch a lower LTV than mutual funds.
• Insurance offer 80%: Some lenders offer high LTV on traditional insurance policies due to their stability.
• LTV protects both you and the lender: It ensures the loan remains safe even if markets fall. If the value of your pledged asset drops, a top-up pledge or partial repayment may be needed.
• It helps you plan better: Knowing your LTV allows you to estimate how much you can borrow without needing to redeem or sell your investments.

A Rs. 16 lakh loan against securities is ideal when you are facing a high-value personal or business expense but don’t want to exit your long-term investments. Instead of liquidating your portfolio which could disrupt your compounding gains or trigger capital gains tax you simply borrow against it.

Here are situations where this loan makes complete sense:

• You want to avoid liquidating assets: Don’t redeem mutual funds or sell shares when the market is down. Borrow and stay invested.
• You are planning major expenses: Education abroad, medical emergencies, or even a wedding can be funded without touching your long-term savings.
• Your business needs capital: Whether it’s bridge funding, paying suppliers, or managing a cash crunch—Rs. 16 lakh can help you maintain momentum.
• You want tax-efficient financing: By not selling your assets, you avoid short-term capital gains tax or exit charges on MFs or insurance policies.
• You need funds without scrutiny: No salary slips, credit score hassles, or income tax returns needed your investments are your financial proof.

Use case: A business owner needing urgent working capital for inventory may find LAS quicker and cheaper than a business loan or overdraft.

You may also consider applying for a Rs. 15 lakh loan if your funding needs fall just below this range.

A Rs. 16 lakh loan against securities offers multiple advantages, especially when compared to unsecured loans or premature asset liquidation. Here’s what makes it the smart choice:

• Stay invested while borrowing: Your portfolio continues to grow and earn returns even as you access liquidity.
• Lower interest vs unsecured loans: LAS rates start at 8% p.a., significantly lower than personal loan interest.
• No income verification needed: No need to submit salary slips, bank statements, or IT returns.
• Quick processing and disbursal: With digital documentation and pledge systems, you get funds in 24–48 hours.
• No usage restrictions: Whether it’s for education, home improvement, emergency medical bills, or business capital—you decide how to use the funds.
• Customised limits based on your portfolio: Borrow more or less based on your investment’s market value.
• Revolving credit options: Some LAS products allow withdrawals and repayments as per your needs, similar to an overdraft.

Example: Instead of redeeming mutual funds during a market dip, pledge them and access liquidity, your funds grow, and your goals stay on track.

Choose from five different investment types to raise Rs. 16 lakh based on your portfolio.
 

Use your investments to access Rs. 16 lakh, without selling a single rupee of your portfolio. Compare LAS options
 

To be eligible for a Rs. 16 lakh loan against securities, you don’t need to meet complex income or credit score requirements. Instead, your eligibility depends largely on your investment portfolio and your ability to digitally pledge it. Here’s what most lenders require:
 

• Age: You must be at least 18 years old at the time of applying. Depending on the LAS product, some lenders allow applicants up to the age of 90 years, especially for life insurance-based variants.
• Residency: Only resident Indian citizens are eligible for a loan against securities. Some lenders may allow NRIs to apply under specific guidelines, subject to document and portfolio conditions.
• Securities in your name: The mutual funds, shares, ULIPs, bonds, or ESOPs you plan to pledge must be legally owned by you. Joint holders may require additional declarations or NOCs.
• Minimum portfolio value: While LAS products start at as low as Rs. 50,000, to raise a higher amount like Rs. 16 lakh, your portfolio must meet the loan-to-value (LTV) requirement, typically between Rs. 20–30 lakh in asset value.
• No income proof required: One of the major advantages of LAS is that you don’t need to submit salary slips or IT returns. Your investment holdings act as your financial credibility.

If your portfolio value allows for higher borrowing, you can also easily qualify for an Rs. 18 lakh loan using the same digital pledging process.

To understand how to get 16 lakh loan against securities approved, you generally need only KYC and investment proof, with no income documents such as salary slips or ITRs required. The documents help verify your identity, bank account, and eligible investments for pledge creation.

For a smoother pledge process with Bajaj Finance, keep your registered mobile number active to complete the CAMS, NSDL, or CDSL OTP verification.

The application process for a Rs. 16 lakh loan against securities is completely digital, convenient, and quick. You don’t need to visit a branch or courier any documents. Here’s how to apply:
 

1. Visit the LAS portalGo to the official Loan Against Securities page and select the variant based on your investment type.
2. Select the investment you want to pledgeChoose whether you want to pledge mutual funds, shares, bonds, insurance policies, or ESOPs.
3. Enter your personal detailsInput your PAN, date of birth, and contact number to begin your application.
4. Upload documentsDigitally upload your PAN card, address proof, photo, and investment statement or account summary.
5. Authorise the pledgeUse your NSDL/CDSL login (for shares), CAMS folio (for MFs), or provide assignment forms for insurance to digitally create the lien or pledge.
6. Loan verification and disbursalAfter your application and documents are verified, the approved amount is credited to your bank account, usually within 24 to 48 hours.

Apply in minutes, pledge online, and receive Rs. 16 lakh within 24 to 48 hours*—no hassle. Apply now

A Rs. 16 lakh loan against securities is one of the most efficient ways to meet high-value financial needs without compromising your long-term investment goals. Whether you're dealing with a business requirement, a family milestone, or an emergency expense, this loan gives you fast access to funds while letting your investments remain intact and continue to grow. Instead of selling your mutual funds, shares, or insurance policies at the wrong time, you can borrow against them at lower interest rates, with minimal paperwork and complete flexibility. It’s smart, seamless, and entirely digital, designed for today’s fast-moving financial needs.

Use your investments wisely, borrow against them, don’t break them. Apply for Rs. 16 lakh loan now
 

For individuals with higher funding requirements, the same digital process can be used to apply for a Rs. 25 lakh loan against your high-value assets.