₹25,000 - ₹25 Cr
Loan of up to 80% of policy value| Funding against policies under lock-in period
Overview
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What is a loan against shares and how does it work?
In Summary
Yes, a loan against stock portfolio can provide liquidity without selling your investments. Bajaj Finance offers flexible borrowing, with interest charged on the amount utilised rather than the entire sanctioned limit.
- Loan against shares: Pledge eligible listed equity shares, mutual fund units, ETFs, or bonds as collateral while retaining ownership.
- Loan against securities: A revolving credit facility lets you borrow, repay, and reborrow within the sanctioned limit; loans can start from Rs. 25,000 and extend to Rs. 100 crore, subject to eligibility.
- Interest rate: Rates start from 8% p.a., with interest charged only on the amount utilised.
- Tenure: Facilities can run from 7 days to 36 months, with an interest-only instalment option.
- Prepayment: For sanctioned amounts above Rs. 5 crore, foreclosure charges can be up to 4.72%; charges are nil up to Rs. 5 crore in applicable cases.
Apply digitally with an OTP-based process through Bajaj Finance to access funds against eligible securities. Apply for Loan Against Securities
A loan against shares (LAS) is a secured credit line where you pledge your listed equity shares or mutual funds to avail funds. Instead of selling your holdings, you simply offer them as collateral and draw money as needed from an approved loan limit. This allows you to maintain your long-term investments while still accessing liquidity for urgent or high-ticket expenses. You continue to retain ownership of your portfolio, ensuring your wealth keeps growing.
When you apply, the process involves pledging your holdings electronically. Once your shares are locked in with the lender, a sanctioned credit limit is offered, usually a percentage of your portfolio’s current market value. You can withdraw any amount within this limit, and interest is charged only on the amount you use, not the entire limit. Additionally, you can top up or reduce your pledged holdings as your portfolio value fluctuates, giving you flexibility and control.
Need access to funds without touching your savings? Apply for loan against shares now
What is a loan against shares and how does it work?
A loan against shares (LAS) from Bajaj Finance lets you pledge eligible shares as collateral and access a revolving credit line, where you can withdraw funds as needed and pay interest on the amount used.
Stage What happens Who acts Outcome Pledge Shares are electronically pledged from your Demat account; portfolio is assessed You + Bajaj Finance Credit limit is sanctioned Withdraw Funds are drawn up to the sanctioned limit on demand You Funds are credited to your account Repay Principal or interest-only is repaid as per the chosen mode You Outstanding balance reduces Release Loan is fully repaid and the pledge is released You + Bajaj Finance Shares return to free balance This loan against securities structure works like an overdraft, making a loan against stock portfolio useful when you need liquidity without selling investments. Apply for a loan against shares with Bajaj Finance
Loan-to-value (LTV): Ratio explained
The Loan-to-Value (LTV) ratio is a critical metric that determines the amount you can borrow against the market value of your pledged securities. LTV not only impacts the sanctioned loan amount but also plays a key role in margin maintenance and risk management.
- LTV percentage: Typically, around 50%, depending on the type and liquidity of your securities.
- Security type matters: Blue-chip shares or debt-free mutual funds attract higher LTVs.
- Dynamic calculation: LTV is reviewed periodically and adjusts with market fluctuations.
- Margin call trigger: If market value falls and LTV exceeds the threshold, you may be asked to top up securities or repay partially.
- Higher LTV = Greater borrowing power: But also requires careful portfolio monitoring.
Who is eligible for a loan against my stock portfolio?
A loan against stock portfolio is available to resident Indians aged 18–90 who have a Demat account holding eligible securities, subject to Bajaj Finance’s eligibility criteria.
| Document type | Accepted examples | Purpose |
|---|---|---|
| Identity proof | PAN card, Aadhaar card, valid photo ID | Mandatory for KYC |
| Address proof | Aadhaar card, utility bill | Mandatory for KYC |
| Bank details | Cancelled cheque or bank statement | For disbursal |
| Demat account details | DP ID and client ID | For electronic pledging |
Applicants may also need to provide additional information or documents based on the lender’s assessment.
Priya’s scenario
Priya, a 38-year-old self-employed entrepreneur in Mumbai, holds a Demat portfolio of NIFTY 50 stocks worth Rs. 20 lakh. She pledged her shares with Bajaj Finance, received a credit limit of Rs. 10 lakh (50% LTV), and funded her business working capital without selling a single share through a loan against shares.
Interest rates and fees on loans against securities
How to apply for Bajaj Finance loan against shares
Interest rates and terms for a loan against your stock portfolio are designed to offer flexibility and cost-efficiency. Here’s what you can expect:
Key highlights:
| Feature | Description |
| Interest rate | Starts from 8% p.a., varies by portfolio risk & lender |
| Interest calculation | Charged only on amount utilised, not full limit |
| Repayment flexibility | Interest-only EMIs, bullet repayment at term-end |
| Loan tenure | Starting from 7 days up to 36 months |
| Foreclosure charges | 4.72% if the sanctioned amount is greater than Rs. 5 Cr |
Benefits of taking a loan against your stock portfolio
This form of financing is tailored for those who want to raise funds without interrupting long-term investment goals. Here’s why it's preferred:
- Retain ownership: Stay invested while using the portfolio as collateral.
- Lower borrowing costs: Interest is generally lower than unsecured credit.
- Quick processing: Fast approvals with minimal documentation.
- No end-use restriction: Use the funds for business, education, or emergencies.
- Online convenience: End-to-end digital application and tracking.
Risks and considerations
Features & Benefits for Bajaj Finance loan against shares
While a loan against your stock portfolio has clear advantages, it’s crucial to be mindful of the following risks:
- Market volatility: A sharp dip in share prices could trigger a margin call.
- Margin maintenance: You may need to pledge additional securities or repay.
- Liquidation risk: Default can lead to enforced sale of pledged stocks.
- Limited security types: Only approved securities are accepted.
- Not ideal for long-term borrowing: Best used for short- to medium-term needs.
Step-by-step: How to apply for a loan against your stock portfolio
Applying for a loan against shares is a seamless digital process that allows you to unlock liquidity without selling your investments. Here’s how you can get started in just a few simple steps:
Step 1: Click on the Apply button to begin the process.
Step 2: Fill in basic details like your name, PAN, date of birth, and contact number.
Step 3: Verify your email address using the OTP sent to your inbox.
Step 4: Select the shares or mutual funds you wish to pledge.
Step 5: Your portfolio will be assessed to create a tailored loan offer.
Step 6: Complete your KYC digitally to proceed.
Step 7: Set up auto-repayment by registering an e-mandate.
Step 8: Review and accept the digital loan agreement.
Step 9: Pledge your shares electronically to finalise the loan amount.
Step 10: Once verified, the approved amount is credited to your account.
Want fast, hassle-free funding without liquidating your portfolio? Apply for loan against shares
Eligibility criteria
Eligibility criteria for Bajaj Finance loan against shares
To qualify for a loan against your stock portfolio, most lenders require:
- Age: 18–90 years
- Residency: Indian resident
- Identification: PAN, Aadhaar or valid KYC documents
- Portfolio: Demat account with eligible securities
- Credit profile: Healthy financial standing and repayment history
Loan against shares vs personal loan: which is better for you?
A loan against securities is generally cheaper for large amounts if you have an equity portfolio, while a personal loan is better for smaller, unsecured needs.
| Parameter | Loan against shares | Personal loan | Best For |
|---|---|---|---|
| Interest rate | From 8% p.a. | From 10% p.a. | Lower cost → LAS |
| Loan amount | Rs. 25,000–Rs. 100 crore | Typically up to Rs. 40 lakh | Large requirement → LAS |
| Collateral | Eligible shares/mutual funds | None | Equity portfolio → LAS |
| Processing | Same-day digital e-pledge | Same-day digital | Similar speed |
| Tax implication | No capital gains tax on pledging | Not applicable | Avoid tax → LAS |
For investors seeking short-term liquidity, a loan against stock portfolio can be more suitable; personal loans may suit borrowers without significant investments.
Make your portfolio do more. Unlock capital while staying invested in the market. Apply for a LAS now
Conclusion
How to Secure a Rs. 2 Crore Loan Against Securities Instantly
A loan against shares is a powerful financial tool for individuals who are investment-savvy but require liquidity. Whether you're managing a business opportunity, funding personal goals, or navigating emergencies, this facility lets you use your portfolio without losing ownership or growth potential. It’s flexible, fast, and far more cost-effective than traditional credit lines.
Leverage your investments wisely apply for a loan against shares and access liquidity on your terms. Apply now
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Frequently asked questions
General
What is the maximum loan amount I can avail against my stock portfolio?
You can avail a loan ranging from Rs. 25,000 up to Rs. 50 crore, depending on the market value and type of shares pledged, subject to eligibility and LTV norms.
Will I continue to receive dividends on my pledged shares?
Yes, you retain ownership of your pledged shares, so you continue to receive dividends and enjoy capital appreciation unless the shares are liquidated due to default.
Can I swap my pledged shares during the loan tenure?
Yes, most lenders allow share substitution during the loan tenure, subject to portfolio reassessment and maintenance of required margin and LTV ratio.
What happens if the market value of my pledged shares decreases?
If share value drops significantly, you may receive a margin call and be required to partially repay the loan to restore balance.
Are there any prepayment or foreclosure charges?
Generally, there are minimal to no foreclosure or prepayment penalties on a loan against shares, but it's best to confirm with your lender based on their specific terms.
Disclaimer
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