Rs. 16 lakh Loan

Need quick access to funds but don’t want to sell your long-term investments? Whether you are facing a medical emergency, a business cash crunch, or a personal milestone like higher education or property down payment, a Rs. 16 lakh loan against securities gives you a smarter way to raise money without touching your portfolio. Let’s explore how you can access this amount quickly, while keeping your investments intact.

Did you know? You can raise up to Rs. 16 lakhs within 24–48 hours* by pledging your mutual funds, shares, insurance, ESOPs, or bonds without selling any of them.

What is a loan against securities?

A loan against securities (LAS) is a secured loan that allows you to borrow a lump sum amount by pledging your financial investments as collateral. These could include mutual funds, listed shares, insurance policies, ESOPs, or bonds. Your assets remain in your name and continue to earn returns, while the lender holds them as a temporary security. It’s one of the fastest and most cost-effective ways to raise funds.

• No liquidation required: Stay invested while accessing liquidity.
• Accepted securities: Mutual funds, shares, insurance, ESOPs, and bonds are commonly accepted.
• Faster approval: Because it’s secured, documentation and checks are minimal.
• Any-purpose loan: Use the funds for personal, medical, business, or educational needs.
• Protect long-term goals: No need to exit investments early or trigger tax events.

Why sell your growing investments when you can borrow against them quickly, at lower interest rates? Apply for a loan against securities

Why not opt for unsecured loans?

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

What is Loan to Value (LTV) and why it matters?

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, bonds, 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 and bonds offer 80%: Some lenders offer high LTV on traditional insurance policies and AAA-rated bonds 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.

When should you consider a Rs. 16 lakh loan against securities?

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.

5 ways to get a Rs. 16 lakh loan

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

Loan product	Interest rate (p.a.)	Tenure
Loan against mutual funds	8–15%	Up to 36 months
Loan against shares	8–15%	Up to 36 months
Loan against insurance	Up to 24%	Up to 96 months
ESOP financing	Up to 15%	Up to 36 months
Loan against bonds	8–15%	Up to 36 months

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

Eligibility criteria for a Rs. 16 lakh loan

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.

Documents required

Applying for a Rs. 16 lakh loan against securities requires minimal documentation, most of which can be uploaded digitally. The process is paperless and fast, and you will only need a few essential documents. Here’s what you will need to keep ready:

PAN card: This is a mandatory document across all loan products for tax and identity verification purposes.

Officially Valid Document: Aadhaar card, voter ID, passport, Driving License, NREGA job card or Letter issued by National Population Register are commonly accepted. This confirms your current and permanent address.

Recent passport-size photograph: Needed for KYC and lender records. In most cases, this can be uploaded as a soft copy.

Investment proof: Depending on the security you are pledging, this could be your mutual fund folio (via CAMS or Karvy), Demat statement, insurance policy document, or bond certificate.

Bank details: A cancelled cheque or digital bank statement is needed to disburse the loan amount into your active account.

Tip: If your mutual funds or shares are already linked to NSDL or CAMS, the pledge process becomes even faster with OTP-based approval.

How to apply for a Rs. 16 lakh loan?

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

Benefits of Rs. 16 lakh loan against investments

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.

Conclusion

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 your Rs. 16 lakh loan now