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What is a loan against securities?
A loan against securities (LAS) is a facility where your existing investments, such as listed shares, bonds, or mutual fund units, serve as collateral for a loan. Rather than selling your investments to access funds, you pledge them, and the lender extends a loan based on their value. This means you continue to hold your securities and benefit from any dividends or interest they generate, while also having access to funds when you need them. Once approved, you're assigned a drawing power, the amount you're eligible to borrow against your pledged securities, which you can draw from as needed, rather than receiving the full amount upfront.
How you can manage your LAS through My Account
Once your loan is active, Bajaj Finance's DIY services let you handle most of your loan management directly online:
| Service | What it lets you do |
|---|---|
| View loan details | Check the value of your pledged securities, applicable interest rate, and current drawing power |
| Withdraw funds | Draw from your available drawing power as many times as you need, rather than a one-time disbursal |
| Download statements | Access your statement of account and other loan documents from the Document Centre |
| Manage repayments | Clear overdue EMIs or make a part-prepayment using your preferred payment method |
| Release securities | Raise an online request to release your pledged securities once eligible |
All of these are available through My Account or the Bajaj Finance app, without needing to visit a branch for routine requests.
How the drawdown facility works
Unlike a typical term loan where the full amount is disbursed upfront, a loan against securities works more like a credit line. You're approved for a certain drawing power based on the value of your pledged securities, and you can withdraw funds from this limit whenever you need them, rather than all at once. Interest is generally charged only on the amount you've actually drawn, not your full approved limit, which can make this a more cost-effective option if you don't need the entire sum immediately. As you repay, your available drawing power is typically restored, letting you draw again within your approved limit as needed.
How to sign in and access your LAS account
Getting started with your DIY services takes just a few steps:
- Click 'Sign In' on the My Account page or open the Bajaj Finance app
- Enter your registered mobile number and verify with the OTP sent to you
- Confirm your details using your date of birth
- Once signed in, select your loan against securities account to manage it
The same steps apply whether you're using the website or the app, so you can pick whichever is more convenient.
What happens if you don't repay your LAS on time
Since your loan is secured against your pledged investments, missing repayments carries a different risk than an unsecured loan. If your outstanding EMI or interest remains unpaid, penal charges may apply as per your loan agreement. If the value of your pledged securities drops significantly due to market movements, you may also face a margin call, requiring you to pledge additional securities or repay part of the loan to restore the required cover. Continued non-payment can eventually put your pledged securities at risk of being sold to recover the outstanding amount, so it's worth monitoring your loan and market movements, particularly if your securities are volatile.
Releasing your pledged securities
Once you're eligible, whether because you've repaid your loan in full or reduced your outstanding balance sufficiently, you can request the release of your pledged securities directly through My Account. This is done by raising an online request, after which Bajaj Finance processes the release and returns control of your securities to you. This means you don't need a branch visit or physical paperwork to reclaim your investments once your obligations are met.
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Frequently Asked Questions
Managing Loan Against Securities
Withdrawals, Repayments & Securities Release
How do I check my current drawing power for my loan against securities?
Log in to My Account or the Bajaj Finance app, select your loan against securities account, and view your loan details, which show your current drawing power along with the value of your pledged securities.
Can I withdraw funds from my LAS more than once?
Yes, a loan against securities works as a drawdown facility. You can withdraw from your approved drawing power multiple times, as and when you need funds, rather than receiving the entire amount upfront.
Do I pay interest on my full drawing power or only what I withdraw?
Interest is generally charged only on the amount you've actually withdrawn, not your total approved drawing power. This can make LAS more cost-effective if you don't need to draw the full amount at once.
How do I release my pledged securities once I've repaid my loan?
Once eligible, raise an online request through My Account to release your pledged securities. Bajaj Finance will process the request and return control of your securities to you without requiring a branch visit.
What happens if the value of my pledged securities drops?
If the market value of your pledged securities falls significantly, you may receive a margin call, requiring you to pledge additional securities or repay part of your loan to maintain the required cover.
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