Loan Against Shares Eligibility Calculator

Informational page on loan eligibility against shares, explaining criteria, estimation method, and application steps.
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3 mins read
24-November-2025

Loan against shares is a popular financial product that allows investors to unlock the value of their shareholdings without selling them. This can be a useful tool for accessing funds without selling your shares. However, it's crucial to understand the eligibility criteria, interest rates, and repayment terms before applying for such a loan. While there isn't a specific calculator for this, the information provided in this guide can help you assess your eligibility and make informed decisions.

How does loan against shares eligibility calculator work?

A Loan Against Shares (LAS) Calculator is a financial tool used to estimate the amount of loan a person can get against their shares. It considers various factors such as the current market value of the shares, the loan-to-value ratio (LTV), and the interest rate offered by the lender.

To use the calculator, one needs to input details such as the type and quantity of shares held, their current market price, and the margin or LTV ratio specified by the lender. Based on these inputs, the calculator computes the maximum loan amount that can be availed against the shares.

This tool is beneficial for individuals looking to leverage their shareholdings for additional funds without selling their shares. It helps them understand the borrowing capacity against their shares and plan their finances accordingly.

Moreover, by using the calculator, borrowers can compare different loan options offered by various lenders and choose the one that best suits their requirements in terms of loan amount, interest rate, and tenure.

Loan Against Shares
Loan Against Mutual Funds

Benefits of Loan Against Shares eligibility calculator

Bajaj Finserv's loan against securities eligibility calculator offers several key benefits:

  • Quick and easy assessment: The calculator provides a rapid assessment of your loan eligibility based on your stock holdings.
  • Accurate loan amount estimation: By inputting the stock name/ISIN and quantity, the calculator provides an accurate estimate of the loan amount you can potentially avail.
  • Informed decision-making: This information empowers you to make informed decisions about applying for a loan against your shares, knowing your borrowing capacity beforehand.
  • Time-saving: The calculator eliminates the need for manual calculations and saves you time and effort.
  • Convenience: The online tool is easily accessible and can be used from anywhere with an internet connection.

By utilizing this user-friendly tool, you can quickly determine your loan eligibility and plan your financial strategies accordingly.

Loan against shares eligibility requirements

To be eligible for a loan against shares, borrowers must meet certain criteria set by lenders. These criteria typically include the following:

  1. Ownership of shares: Borrowers must be the rightful owners of the shares they wish to pledge as collateral.
  2. Age: Borrowers must be of legal age, usually 18 years or older, to be eligible for a loan against shares.
  3. Creditworthiness: Lenders may assess the borrower's creditworthiness based on factors such as credit score, income, and repayment history.
  4. Loan-to-value (LTV) ratio: Lenders may have a maximum LTV ratio, which determines the maximum loan amount based on the value of the pledged shares.
  5. Other documents: Borrowers may be required to submit identification proof, address proof, income proof, and details of the shares to be pledged.

How to use the calculator and what factors it considers

Using Bajaj Finserv's loan against securities eligibility calculator is straightforward:

  1. Add your stock name: Enter the name or ISIN (International Securities Identification Number) of the stocks you own.
  2. Add units of stock: Specify the number of units you hold for each stock.
  3. Add scrips: You can add multiple scrips to calculate the loan eligibility for your entire portfolio.

The calculator then considers the following factors to determine your loan eligibility:

  • Current market value of your stocks: The calculator fetches real-time or near real-time market data to determine the current value of your stock holdings.
  • Loan-to-Value (LTV) ratio: The calculator applies a specific LTV ratio, which represents the percentage of the stock value that can be loaned against. This ratio may vary depending on factors like stock volatility and market conditions.
  • Other factors: The calculator may also consider other factors, such as the creditworthiness of the borrower and the overall market conditions.

By considering these factors, the calculator provides you with an estimated loan amount that you can potentially avail against your stock portfolio.

Advantages of loan against shares over other loan types

A loan against shares allows you to access funds without selling your investments. Unlike personal or business loans, you continue to remain the owner of your portfolio and benefit from market growth and dividends. Below are the key advantages:

  • Lower interest rates: Since it is a secured loan, the interest rate is generally lower than unsecured loans like personal loans or credit cards.
  • Retain ownership of shares: You do not need to liquidate your portfolio to raise funds, allowing you to benefit from future market gains.
  • Flexible usage: Funds can be used for business, emergencies, education, home renovation, or any other personal requirement without restrictions.
  • Pay interest only on utilised amount: Some lenders charge interest only on the borrowed amount, not the entire sanctioned limit, reducing your cost.
  • Quick processing: Digital pledging and instant approvals enable fast access to funds.

Risks to consider before taking a loan against shares

Although a loan against shares offers liquidity and lower borrowing costs, it comes with market-linked risks. Borrowers must understand these risks to avoid losses or forced liquidation of their pledged securities. Below are the key risks:

  • Market volatility impact: If share prices fall, the lender may ask you to add more collateral or repay a portion of the loan (margin call).
  • Possibility of share sell-off: Failure to fulfil a margin call or repay on time can lead to the lender selling your pledged shares.
  • Variable LTV ratios: Loan eligibility depends on share category and market value; sudden fluctuations can reduce your borrowing limit.
  • Additional charges: Processing, lien creation, maintenance, and prepayment charges (if applicable) can increase overall cost.
  • Limited pledge options: Only approved shares (based on lender lists) can be pledged, restricting some portfolios.

Conclusion

A loan against shares calculator is a valuable tool for borrowers looking to avail funds against their shareholdings. By providing an estimate of the loan amount and EMI payable, this calculator helps borrowers plan their finances effectively. Additionally, understanding the eligibility criteria and the application process for a loan against shares is essential for a smooth borrowing experience.

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1. Bajaj Finance Limited (“BFL”) is a Non-Banking Finance Company (NBFC) and Prepaid Payment Instrument Issuer offering financial services viz., loans, deposits, Bajaj Pay Wallet, Bajaj Pay UPI, bill payments and third-party wealth management products. The details mentioned in the respective product/ service document shall prevail in case of any inconsistency with respect to the information referring to BFL products and services on this page.

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Frequently asked questions

How is interest calculated on loans against shares?
Interest on a loan against shares is typically calculated using the reducing balance method. The interest is charged on the outstanding loan amount at the end of each period, usually monthly. The interest rate is applied to the remaining principal after deducting the amount of the EMI paid towards the principal.
What is the loan to value on shares?
Loan-to-Value (LTV) on shares refers to the ratio of the loan amount offered by a lender to the value of the shares pledged as collateral. For example, if the LTV ratio is 50%, a borrower pledging shares worth Rs. 10,000 may be eligible for a loan of up to Rs. 5,000. LTV ratios vary among lenders and typically range from 50% to 70% depending on the shares' liquidity and market volatility.
What are the charges applied on loans against shares?
The charges applied on a loan against shares may include processing fees, interest charges, and prepayment charges. Processing fees are charged for processing the loan application. Interest charges are levied on the loan amount disbursed. Prepayment charges may apply if the borrower chooses to repay the loan before the end of the loan tenure.
How is my loan eligibility against shares calculated?

Your loan eligibility against shares is calculated based on the current market value of your pledged shares and the applicable Loan-to-Value (LTV) ratio set by the lender, usually capped at 50% as per RBI guidelines.

What factors affect my eligibility for a loan against shares?

Key factors include the type and market value of shares, the LTV ratio, your credit score, repayment history, and the lender’s internal risk policies. Shares must also be from an approved list of eligible securities.

Can I get a loan against unlisted shares?

Generally, lenders do not accept unlisted shares as collateral for loans. Most require listed, dematerialised shares from approved companies with sufficient liquidity and daily trading volume to ensure easy valuation and risk management.

What is the minimum share value required to apply?

The minimum value of shares required varies by lender but usually starts around Rs. 50,000 to Rs. 1 lakh. The pledged shares must belong to the lender’s approved list and meet minimum quantity or liquidity requirements.

What is the maximum loan tenure for a loan against shares?

The tenure for a loan against shares typically ranges from a few months to several years, depending on the lender’s policies. Many lenders offer an overdraft-style facility where the loan can be renewed periodically without closing it.

Can I prepay the loan, and are there any charges?

Yes, you can prepay a loan against shares. Many lenders do not charge prepayment penalties, especially for overdraft-based loans where you pay interest only on the amount used. However, specific charges vary across institutions.

How does the share market volatility affect my loan?

Market volatility impacts the value of pledged shares. If prices drop significantly, the available loan amount reduces, and you may need to add more collateral or repay a portion of the borrowed amount to maintain the required LTV.

What happens if the value of pledged shares falls below a certain limit?

When share value declines and breaches the required Loan-to-Value (LTV), the lender issues a margin call. If you fail to respond by adding shares or repayment, the lender may sell the pledged shares to recover dues.

How soon can I get the loan disbursed after application?

Loan disbursal is usually quick after share pledging is completed. With online pledging, approvals often happen instantly, allowing disbursal within a few hours or the same working day, subject to verification and documentation.

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