How to Get a Loan Against Securities?

The securities accepted for a Loan Against Securities (LAS) depend on the lender's approved collateral list.

Common eligible securities

• Equity shares: Listed shares that meet the lender's eligibility and liquidity criteria.
• Mutual funds: Eligible equity, debt, hybrid, or other approved mutual fund units.
• Bonds and debentures: Certain approved government or corporate securities.
• Exchange-traded funds (ETFs): Eligible ETFs meeting applicable acceptance criteria.
• Insurance policies: Certain eligible life insurance policies with qualifying value.

The applicable LTV can differ significantly between security categories. Therefore, the same portfolio value can support different borrowing amounts across different asset classes.

For example, certain current facilities offer up to 50% LTV against eligible shares. 

For mutual funds, the applicable LTV depends on the fund category, approved scheme, and lender's terms.

Eligibility generally depends on both the applicant and the securities offered as collateral.

Eligibility criteria

• Residency: Indian residents may qualify under applicable individual facilities.
• Age: Certain current facilities accept applicants aged 21 to 90 years. 
• Employment: Salaried and self-employed applicants can qualify under applicable facilities.
• Security ownership: Applicants must own eligible securities that can be pledged.
• Security value: Certain facilities require eligible securities worth at least Rs. 50,000. KYC compliance: Required identity and financial verification must be completed.

• Collateral eligibility: The proposed securities must appear on the lender's approved list.

  
  

Eligibility can differ for companies, trusts, partnerships, Hindu Undivided Families (HUFs), and other entities.

Documents required

• PAN card: Required for applicable financial and securities transactions.
• KYC document: Aadhaar, passport, voter ID, driving licence, or another accepted document.
• Demat holding statement: Confirms ownership and current holdings.
• Bank details: Used for eligible disbursal and repayment processes.
• Additional documents: The lender may request supporting information during verification.

Keeping documents updated can reduce delays during the application process.

Already hold eligible investments? Turn them into instant liquidity with a loan against shares. 

The Loan Against Securities (LAS) application process generally combines online application, verification, collateral assessment, and pledge creation.

Step-by-step process

Step 1: Check eligible securities

Review your portfolio and identify investments accepted by the lender.

Step 2: Check eligibility

Confirm your age, residency, employment status, security value, and other applicable criteria.

Step 3: Submit the application

Enter the required personal, financial, and loan-related information.

Step 4: Complete KYC

Submit PAN, identity documents, and other requested information.

Step 5: Pledge securities

Complete the required pledge process for the approved securities.

Step 6: Loan assessment

The lender evaluates the collateral value and determines the applicable LTV.

Step 7: Review the offer

Check the interest rate, sanctioned amount, charges, tenure, and repayment conditions.

Step 8: Receive funds

Disbursal follows successful verification, approval, and completion of pledge formalities.

The exact process can vary according to the lender, security type, and facility structure.

Looking for a faster borrowing process with minimal documentation? Apply easily for a loan against securities 

Loan Against Securities (LAS) can provide flexibility when investors require liquidity without immediately liquidating investments.

Key benefits

• Retain investments: Pledged securities generally remain owned by the borrower.
• Access liquidity: Borrow against eligible investments without selling them.
• Potentially lower borrowing costs: Secured facilities can be more economical than some unsecured alternatives.
• Flexible utilisation: Certain facilities allow borrowing according to available drawing power.
• Quick processing: Financial securities can often be verified electronically.
• Portfolio continuity: Eligible investments can remain exposed to market movements.

• Interest efficiency: Applicable facilities may charge interest on the amount actually utilised.

  
  

However, pledged securities remain exposed to market fluctuations. A fall in collateral value can affect the available borrowing capacity.

The value of Loan Against Securities (LAS) extends beyond accessing immediate funds.

It can suit investors who:

• Need temporary liquidity without selling long-term investments.
• Want to preserve their existing investment strategy.
• Require funds for personal or business requirements.
• Prefer secured borrowing against existing financial assets.
• Need flexible access to funds under an applicable credit facility.
• Want to avoid unnecessary liquidation during unfavourable market conditions.

However, borrowing should remain aligned with your repayment capacity. Pledged securities can be affected by market volatility, creating additional collateral requirements.The value of Loan Against Securities (LAS) extends beyond accessing immediate funds.

Want affordable credit without liquidating assets? Choose a smarter borrowing route with a loan against mutual funds. 

Understanding how to get a Loan Against Securities (LAS) starts with identifying eligible collateral and confirming lender-specific eligibility. The process usually includes documentation, collateral assessment, pledge creation, approval, and fund disbursal. The borrowing amount depends on the market value and applicable LTV of your securities.

Your final terms also depend on the lender, security category, borrower profile, and facility structure. Loan Against Securities (LAS) can help meet temporary financial needs without immediately selling eligible investments. However, borrowers should evaluate borrowing costs, collateral risks, and repayment capacity before applying.

Used responsibly, this facility can provide liquidity while helping investors maintain their broader investment strategy.

Make your investments work harder for you, and access liquidity confidently with a loan against shares.