Published Jul 25, 2025 4 min read

Need urgent funds but do not want to sell your shares? A loan against shares could be the solution you are looking for. It allows you to use the value of your equity investments to raise funds without liquidating them. Whether you are facing a medical emergency, expanding your business, or simply need extra liquidity, this option gives you access to capital while keeping your long-term investments intact. Let us explore how it works, current interest rates, and the best options available to you.


Need quick funds without selling your shares? Apply online for a loan against shares and get funds in 24–48 hours* with minimal paperwork. Apply now



What is a loan against shares?

A loan against shares is a type of secured loan where you pledge your listed equity shares in return for a loan. You continue to own the shares, and in some cases, may even receive dividends or benefit from capital appreciation while the loan is active. The amount you can borrow depends on the value of the shares and the lender’s loan-to-value (LTV) policy. The higher the share value and the better your credit profile, the larger the loan amount. This type of loan is ideal for investors who need short-term liquidity but do not want to disturb their portfolio.



Current interest rates for loan against shares (2025)

Here is how different lenders stack up in terms of interest rates in 2025:

LenderInterest Rate (per annum)Loan Amount Range
Bajaj  Finance Limited8% - 15% p.a.Rs. 10,000 – Rs. 1,000 crore
HDFC Bank10% – 12.5% p.a.Rs. 5 lakh – Rs. 20 crore
ICICI Bank10.5% – 13.0% p.a.Rs. 5 lakh onwards
Axis Bank11.0% – 13.5% p.a.Rs. 5 lakh onwards
Kotak Mahindra Bank10.25% – 12.75% p.a.Rs. 10 lakh onwards
SBI Capital Markets9.95% – 12.25% p.a.Rs. 5 lakh – Rs. 25 crore


Comparison of Loan-to-Value (LTV) ratios across lenders

LTV ratio is the percentage of your shareholding’s market value that lenders allow you to borrow. Here's how the top lenders compare:

LenderMaximum LTV ratioRemarks
Bajaj  Finance LimitedUp to 50% Offers higher LTV on select shares
HDFC BankUp to 50%Based on approved share list
ICICI BankUp to 50%Custom limits based on risk rating
Axis BankUp to 55%Adjusted based on share volatility
Kotak Mahindra BankUp to 50%Subject to client profile
SBI Capital MarketsUp to 50%Market value-based lending


Processing fees and additional charges breakdown

Besides interest rates, lenders also levy processing and service fees. Here is a comparative breakdown:

LenderProcessing feesOther charges
Bajaj  Finance LimitedUp to 4.72%Minimal documentation, transparent terms
HDFC BankRs. 999 – Rs. 5,000Annual renewal charges apply
ICICI Bank0.5% – 1% of loan amountMay include pledge and prepayment fees
Axis Bank1% of loan amountOverdue interest and administrative charges
Kotak Mahindra BankRs. 3,500 – Rs. 7,000Legal and stamp duty charges
SBI Capital MarketsRs. 2,000 + GSTAnnual maintenance fees possible

Trying to reduce extra costs? Choose a lender with low processing fees and no hidden charges for better overall value. Apply now



Eligibility criteria for availing loan against shares

Meeting the lender’s eligibility criteria is the first step. Here’s a simple checklist for loan against shares eligibility:

  • Age: Between 18 and 90 years
  • Employment: Salaried, self-employed, or business owner
  • Ownership: Holding of approved listed shares
  • CIBIL score: Generally not required
  • KYC-compliant: PAN and Aadhaar must be valid and active

Some lenders may also check your income or business turnover, especially for large-value loans.


Not sure if you are eligible? Use an online eligibility calculator to find out instantly before applying.

Required documentation for loan application

 
 

To apply, you will need to submit a few basic documents. Here is a quick list:

  • PAN (mandatory)
  • Any one of the mentioned officially valid documents: Aadhaar, Voter ID, Passport, Driving License, NREGA Job Card, Letter issued by National Population Register 
  • Passport-size photo
  • Latest shareholding statement
  • Cancelled cheque or bank proof
  • Income proof (if required)

Digital applications may require scanned copies only, and some lenders even offer fully paperless journeys.



Step-by-step guide to applying for a loan against shares

Follow this simple process to apply for a loan:

Step 1: Click on “Apply”

Visit the loan‑against‑shares page and hit the Apply button to begin.

Step 2: Enter your mobile number and verify OTP

Input your mobile number, click Get OTP, then enter the code received to sign in.

Step 3: Fill in personal and KYC details

Provide basic information like name, PAN, date of birth, and email. Upload KYC via DigiLocker or manually.

Step 4: Enter share details and check eligibility

Select the shares you wish to pledge by inputting the stock names and share quantities. This gives you a loan eligibility estimate.

Step 5: Choose your loan amount

Based on eligibility and the Loan-to-Value ratio (up to 50% currently), select the amount you’d like to borrow.

Step 6: Provide bank details and set up e-mandate

Enter your bank account information. Then register an e-mandate to authorize EMI repayments.

Step 7: Agree to the terms electronically

Review the loan agreement and sanction letter. Accept electronically, typically via OTP.

Step 8: Pledge shares as collateral

Pledge your selected shares through your Demat account (NSDL/CDSL). This secures the loan.

Step 9: Loan disbursal and interest setup

After share verification, the loan amount is disbursed to your bank account. Interest starts accruing only on the amount utilized, with cycles measured monthly (7th to 6th of the next month).



Benefits of choosing a loan against shares

This form of loan comes with many advantages:

  • Retain ownership: You don’t need to sell your shares
  • Fast access to funds: Usually within 24–48 hours*
  • Lower interest than personal loans: Because it's a secured loan
  • Flexible usage: Use funds for any purpose—business, medical, or personal
  • Continued portfolio growth: In most cases, your shares still earn returns

Need funds but want to keep your investments untouched? A loan against shares can offer the best of both worlds liquidity and long-term growth. Apply now 



Conclusion

A loan against shares is a reliable way to meet your financial needs without selling your investments. With low interest rates, flexible terms, and quick disbursal, it’s a smart tool for anyone looking to raise funds while keeping their portfolio intact. Just compare interest rates, LTV ratios, processing fees, and eligibility requirements before applying to find the best fit for your needs.


Want to unlock liquidity from your shares without selling? Apply online for a secured loan and get access to funds in just a few clicks. Explore now

Frequently asked questions

What is the maximum loan amount I can avail against my shares?

You can get a loan of up to Rs. 1000 crore, depending on the value of your pledged shares, their eligibility, and the lender’s Loan-to-Value (LTV) policy, typically up to 50% of the share value.

How is the interest rate determined for a loan against shares?

The interest rate depends on your credit profile, the type and quality of shares pledged, loan amount, and lender-specific criteria. Rates usually start from 8–10% per annum and may vary based on risk and portfolio size.

Can I prepay my loan against shares without any charges?

Yes, many lenders allow you to prepay your loan against shares partially or fully without any prepayment or foreclosure charges. Always check with the lender in advance for specific terms before repayment.

What happens if the value of my pledged shares decreases?

If share value drops significantly, your lender may issue a margin call—asking you to either pledge more shares or repay part of the loan to maintain the required LTV ratio. Failure to comply may lead to share liquidation.

Is it possible to get a loan against mutual funds or other securities?

Yes, loans can also be availed against mutual funds, insurance policies, bonds, and other approved securities. The process and terms are similar, but the LTV ratio and interest rate may vary based on the asset type.

Show More Show Less

Bajaj Finserv App for All Your Financial Needs and Goals

Trusted by 50 million+ customers in India, Bajaj Finserv App is a one-stop solution for all your financial needs and goals. 

You can use the Bajaj Finserv App to: 

  • Apply for loans online, such as Instant Personal Loan, Home Loan, Business Loan, Gold Loan, and more.
  • Explore and apply for co-branded credit cards online.
  • Invest in fixed deposits and mutual funds on the app.
  • Choose from multiple insurance for your health, motor and even pocket insurance, from various insurance providers.
  • Pay and manage your bills and recharges using the BBPS platform. Use Bajaj Pay and Bajaj Wallet for quick and simple money transfers and transactions.
  • Apply for Insta EMI Card and get a pre-approved limit on the app. Explore over 1 million products on the app that can be purchased from a partner store on Easy EMIs.
  • Shop from over 100+ brand partners that offer a diverse range of products and services.
  • Use specialised tools like EMI calculators, SIP Calculators
  • Check your credit score, download loan statements and even get quick customer support—all on the app.

Download the Bajaj Finserv App today and experience the convenience of managing your finances on one app.

Disclaimer

1. Bajaj Finance Limited (“BFL”) is a Non-Banking Finance Company (BAJAJ FINANCE) 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.

2. All other information, such as, the images, facts, statistics etc. (“information”) that are in addition to the details mentioned in the BFL’s product/ service document and which are being displayed on this page only depicts the summary of the information sourced from the public domain. The said information is neither owned by BFL nor it is to the exclusive knowledge of BFL. There may be inadvertent inaccuracies or typographical errors or delays in updating the said information. Hence, users are advised to independently exercise diligence by verifying complete information, including by consulting experts, if any. Users shall be the sole owner of the decision taken, if any, about suitability of the same.