Can I Take a Loan Against My Stock Portfolio?

If your equity portfolio is just sitting in your Demat account, it’s time to put it to work. Yes, you can take a loan against your stock portfolio and it’s one of the smartest ways to access large funds without selling your investments. Whether you need liquidity for business, education, or urgent expenses, your listed securities can unlock it without tax implications or wealth disruption.

Did you know? You can raise funds up to Rs. 100 crore by pledging your shares and still retain ownership benefits like dividends and capital appreciation.

This way, your investments continue to grow while giving you access to high-value credit whenever you need it. Apply now and let your portfolio fund your next big move.

What is a loan against shares?

A loan against shares (LAS) is a secured credit line where you pledge your listed equity shares or mutual funds to avail a loan. You don’t have to sell anything you simply offer your holdings as collateral and draw money as needed from an approved loan offer amount.

This is particularly useful for individuals who want to maintain long-term investments but still need liquidity for high-ticket needs. You retain ownership, and your wealth continues to grow.

Need access to funds without touching your savings? Apply for loan against shares now

How does a loan against my stock portfolio work?

When you apply for a loan against your stock portfolio, 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 value. You can then withdraw any amount within this limit, and interest is charged only on the withdrawn sum, not the full limit. You can also top up or reduce your pledged amount as your portfolio value changes.

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.

Key points to understand LTV:

• 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.

Types of securities accepted for LAS

A loan against shares facility allows you to pledge various market-linked instruments to secure credit. The key is to ensure that the securities you pledge are approved and liquid enough to maintain required margins.

Eligible securities typically include:

• Listed equity shares: Blue-chip stocks from major indices like NIFTY and SENSEX.
• Mutual fund units: Equity or debt mutual funds with good track records.
• Exchange-Traded Funds (ETFs): Liquid ETFs listed on recognised exchanges.
• Bonds and government securities: Select debt instruments offering stability.
• Demat-housed securities only: Physical certificates are generally not accepted.

Interest rates and repayment terms

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

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 guide to applying for a loan against shares

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:

Application process:

• 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

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

Why take loan against shares?

Pledging your stock portfolio is a smart alternative to liquidating assets or taking costly unsecured loans. Here’s why it makes sense:

• Preserve your investments: Stay invested while funding urgent needs.
• High-value funding: Get loans up to Rs. 100 crore based on portfolio.
• Lower interest rates: Typically, cheaper than personal or business loans.
• Revolving credit access: Use as much or as little as you want.
• Zero tax implications: Avoid capital gains tax triggered by selling shares.

Make your portfolio do more. Unlock capital while staying invested in the market. Apply for a LAS now

Conclusion

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