Features and benefits of a loan against securities
Here are the features and benefits of taking loan against securities:
Features
Quick access: Get funds faster than traditional loans.
Affordable rates: Pay less interest compared to unsecured borrowing.
Portfolio retention: Continue to enjoy market growth while using your securities as collateral.
Benefits
Fast approvals: Access funds when you really need them.
Cost-effective borrowing: Lower overall repayment burden.
Ongoing growth: Your investments remain active, potentially increasing in value.
Why liquidate? Borrow against your securities and keep your investments working. Get started
Processing fees and charges you should know
While interest is the biggest cost, you should also account for:
Processing fees: One-time fee depending on loan amount
Prepayment charges: May apply if you close early
Penal charges: For late repayments
Pledge creation charges: For creating security against your assets
Annual maintenance charges: For maintaining the loan account
Step-by-step guide to applying for LAS
Getting started is simple:
Step 1: Click on ‘Apply’ and start your application.
Step 2: Enter your basic details such as name, PAN, and date of birth.
Step 3: Verify your email address and mobile number for security.
Step 4: Select the securities (shares, mutual funds, bonds, or policies) you want to pledge.
Step 5: We assess your portfolio and share a customised loan offer.
Step 6: Complete quick KYC verification and register an e-mandate for repayments.
Step 7: Accept the loan terms and pledge your securities.
Step 8: Once approved, the sanctioned loan amount is transferred directly to your bank account.
Factors that affect the interest rate on loan against securities
Several factors play a role in what interest rate you get:
Type of security pledged – shares and mutual funds generally mean lower rates, insurance policies may carry higher rates
Loan amount – higher amounts can sometimes fetch better rates
Borrower profile – your credit history and repayment record count
Loan tenure – shorter durations may come with reduced rates
How is interest calculated on LAS?
The good news is interest is usually calculated on a daily reducing balance. This means you only pay interest for the actual amount you use and for the days you use it.
For example:
If you draw only part of your approved limit, you pay interest just on that part.
Withdraw later? Interest is charged only from that date.
This keeps borrowing efficient and transparent.
Pay only for what you use that is the smart way to borrow. Apply now
When is a loan against securities the right choice?
Emergencies like medical bills
Quick travel or education expenses
Business cash flow gaps
Short-term liquidity without selling assets
Tips for managing your LAS wisely
Choose a tenure that balances EMIs and interest cost
Set up auto-debit for repayment to avoid penalties
Keep reviewing your investment portfolio as it remains collateral
Conclusion
A loan against securities gives you quick liquidity without disturbing your savings or selling your assets. With interest rates starting from 8% p.a., minimal paperwork, and quick approvals, it is one of the most cost-effective ways to borrow. By understanding the loan against securities rate of interest, charges, and factors that affect your rate, you can make informed decisions and borrow smartly.
Your investments can support today while still building tomorrow. Apply for a loan against securities today!