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?
Why sell when you can borrow? Get instant liquidity with a loan against shares at rates starting 8–15% p.a. and keep your investments growing. Apply now
What is a loan against equity shares?
A Loan Against Shares (LAS) is a secured borrowing facility that allows you to obtain funds by pledging your shares as collateral with a bank or financial institution. Instead of selling your investments to meet financial requirements, you can continue to hold ownership of your shares while accessing liquidity.
Here is how a Loan Against Shares works:
Pledge your shares: You pledge eligible shares to the lender, who sanctions a loan based on a specified percentage of their market value. Typically, the loan amount can be up to 50% of the value of the pledged shares, subject to the lender’s terms and maximum loan limits.
Interest rate and repayment terms: Since the loan is backed by securities, it generally carries a lower interest rate than unsecured borrowing options. Many lenders offer LAS as an overdraft facility, allowing borrowers to draw funds as needed. Interest is charged only on the amount utilised, and there are usually no fixed EMIs. The principal amount can be repaid at the borrower’s convenience within the approved tenure.
A Loan Against Shares can be an effective financing option for individuals who need immediate funds while continuing to benefit from the potential long-term growth of their investment portfolio.
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*
What is the current interest rate for a loan against listed shares in India?
A loan against shares generally comes with competitive interest rates since the facility is secured against your equity holdings. The exact rate varies based on factors such as portfolio quality, market volatility, and your financial profile. Typically, rates are determined after evaluating risk and collateral strength.
Key factors influencing interest rates:
- Type and stability of shares pledged
- Overall portfolio value and diversification
- Market conditions and volatility
- Your credit profile and repayment history
- Lender’s internal risk assessment
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 is the interest rate calculated on a loan against shares?
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.
How to apply for a loan against equity shares?
Applying for a loan against equity shares is a simple online process that helps you unlock funds without selling your investments. You need to share basic details, verify your information, and pledge your shares digitally. Once your eligibility is assessed, a tailored loan offer is generated. Steps to apply for a loan against equity shares:
- Begin the application and enter your personal details, including your name, date of birth, and PAN
- Verify your mobile number or email using an OTP
- Provide your demat account details to enable digital share pledging
- Select the equity shares you want to pledge as collateral
- Review the eligible loan amount displayed based on your portfolio value
- Submit your application and complete the e-signing or digital authorisation
- After processing, the approved loan amount is transferred to your bank account.
