Why sell when you can borrow? Ever been in a tight spot financially and thought about selling your shares? Maybe it’s an unexpected medical bill, a business opportunity you don’t want to miss, or just a short-term need. It feels like the only option is to cash out. But what if you didn’t have to?
What if your shares could help you borrow money while still growing in value?
Selling Rs. 5-10 lakh worth of shares today could cost you Rs. 10-20 lakh in future gains over the next decade. That’s money you might never recover.
Instead of cashing out, you can get a loan against your shares at interest rates starting from just 8-15% per year and still stay invested.
So why give up tomorrow’s wealth for today’s cash needs?
Borrow smart. Let your shares grow while they fund your goals. Check your eligible loan amount and interest rates now.
Understanding loan against equity shares
A loan against shares is simple. You pledge your listed shares to a lender, and in return, you get a loan. The shares stay in your name and you cannot sell them until you repay the loan.
This is useful if you want cash quickly but don’t want to lose out on the long-term value of your investments.
Take Ramesh for example. He’s a small business owner who built a portfolio over time. When he got a big order that needed upfront payment, he didn’t sell his shares. He used them to get a quick loan, fulfilled the order, and repaid the loan in a few months. His business grew, and so did his investments.
If you have shares lying idle, they can help you meet your financial goals without selling a single unit. Apply now and get funds within 24 hours*
Current interest rates for loan against shares
The interest rate for a loan against shares usually starts at 8% and can go up to 15% per year. It depends on the kind of shares you have, your credit profile, and your lender.
Now think about this personal loans and credit cards often charge between 12% and 36%*. That’s a big gap.
So, why pay double the interest elsewhere when you can use your own investments to borrow at a lower rate? Check today’s interest rates and apply easy
Factors that decide your interest rate
Your interest rate is not fixed for everyone. It depends on things like:
- What shares you are pledging—blue-chip stocks usually get better rates
- Your credit score
- The amount you want to borrow
- The loan tenure (how long you need the money)
- Market conditions and how risky your portfolio might be.
Anita, for example, had a good mix of reliable stocks and a high credit score. She got a loan at just 8.25% per year. That helped her cover a big family expense without dipping into savings.
How interest is calculated?
It’s easy to understand how much interest you will pay.
Let’s say you borrow Rs. 5 lakh at 9% interest for a year. You will pay Rs. 45,000 in interest by the end of the year.
There are two ways to take this loan:
- As a term loan: You repay it in fixed amounts over time
- As an overdraft: You only pay interest on what you use, for how long you use it
Knowing your interest helps you plan better. Use our loan against securities calculator to see your estimated costs before you decide.
Benefits of opting for a loan against equity shares
Taking a loan against your equity shares is a smart way to unlock liquidity without giving up your investments. Here’s why:
1. Quick access to funds
Need funds urgently? This option allows you to borrow almost instantly without having to sell your shares. Ideal for short-term needs.
2. Retain ownership and growth potential
Even though your shares are pledged, you still own them. That means if their value increases, you continue to benefit from capital appreciation and dividends.
3. Flexible repayment options
Most lenders offer customisable repayment schedules. You can choose interest-only payments or pay off the principal in parts, depending on your cash flow.
4. Lower interest rates compared to unsecured loans
Since your shares act as collateral, the interest rates are usually lower than personal loans or credit card borrowing.
