₹10,000 - ₹25 Cr
Loan of up to 80% of policy value| Funding against policies under lock-in period
Overview
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A Loan Against Shares (LAS) is a secured borrowing facility that enables investors to unlock the value of their equity holdings without selling them. By pledging eligible shares as collateral, you can obtain funds for personal, business, or investment needs while continuing to retain ownership of your portfolio and benefit from potential market appreciation. Since the loan is backed by securities, lenders generally offer more competitive interest rates than unsecured credit options. Interest rates typically range between 8.00% and 15.00% per annum, depending on the lender, pledged securities, and borrower profile, making LAS a cost-effective source of liquidity.
What is a loan against shares and how does it work?
A loan against shares is a financial arrangement where individuals pledge their stock holdings or shares as collateral to secure a loan from a lender. This type of loan allows borrowers to leverage their investments without liquidating them, providing a convenient way to access funds for various needs, such as education, business expansion, or personal expenses. Here is how it works:
Pledging shares:
To obtain the loan, borrowers pledge their shares with the lender. These shares must typically be listed in recognized exchanges and approved securities.
Loan amount
The loan amount sanctioned is usually a percentage of the market value of the pledged shares, up to 50%, depending on the lender's policies.
Interest rates:
Loan against shares typically comes with lower interest rates compared to unsecured loans, as the shares act as collateral, reducing the lender’s risk.
Repayment:
The borrower repays the loan through EMIs or flexible payment options. Meanwhile, they retain ownership of the shares but cannot sell or trade them until the loan is fully repaid or close the account.
Eligibility criteria:
Eligibility is determined based on factors such as the borrower’s income, credit score, and the type of shares being pledged.
Risk management:
If the value of the pledged shares drops significantly, the lender may ask for additional collateral or liquidate shares to recover the outstanding loan amount. A loan against shares offers a quick and hassle-free way to access funds while preserving your investment portfolio, ensuring financial flexibility in times of need.
Current interest rates for loan against shares (2026)
How to Secure a Rs. 2 Crore Loan Against Securities Instantly
Here is how different lenders stack up in terms of interest rates in 2026:
| Lender | Interest Rate (per annum) | Loan Amount Range |
|---|---|---|
| Bajaj Finance Limited | 7%–12.25%p.a. | Rs. ₹25,000–₹50 Cr |
| HDFC Bank | 9.25%–12.50% p.a. | Rs. 1 lakh–Rs. 20 crore |
| ICICI Bank | 10.5%–13.0% p.a. | Rs. 5 lakh onwards |
| Axis Bank | 11.0%–13.5% p.a. | Rs. 5 lakh onwards |
| Kotak Mahindra Bank | 10.25%–12.75% p.a. | Rs. 10 lakh onwards |
| SBI Capital Markets | 9.95%–12.25% p.a. | Rs. 5 lakh–Rs. 25 crore |
(Please note: Values are as of 01/09/2026 and are of an indicative range. Actual amounts/ values/ percentages may vary)
Loan-to-Value ratio differences across lenders
How to apply for Bajaj Finance loan against shares
LTV ratio is the percentage of your shareholding’s market value that lenders allow you to borrow. Here's how the top lenders compare:
| Lender | Maximum LTV ratio | Remarks |
|---|---|---|
| Bajaj Finance Limited | Up to 50% | Offers higher LTV on select shares |
| HDFC Bank | Up to 50% | Based on approved share list |
| ICICI Bank | Up to 50% | Custom limits based on risk rating |
| Axis Bank | Up to 55% | Adjusted based on share volatility |
| Kotak Mahindra Bank | Up to 50% | Subject to client profile |
| SBI Capital Markets | Up to 50% | Market value-based lending |
(Please note: Values are as of 01/09/2026 and are of an indicative range. Actual amounts/ values/ percentages may vary)
What is the processing fee for a loan against shares?
Features & Benefits for Bajaj Finance loan against shares
Besides interest rates, lenders also levy processing and service fees. Here is a comparative breakdown:
| Lender | Processing fees | Other charges |
|---|---|---|
| Bajaj Finance Limited | Up to 4.72% | Minimal documentation, transparent terms |
| HDFC Bank | Rs. 999–Rs. 5,000 | Annual renewal charges apply |
| ICICI Bank | 0.5%–1% of loan amount | May include pledge and prepayment fees |
| Axis Bank | 1% of loan amount | Overdue interest and administrative charges |
| Kotak Mahindra Bank | Rs. 3,500–Rs. 7,000 | Legal and stamp duty charges |
| SBI Capital Markets | Rs. 2,000 + GST | Annual maintenance fees possible |
(Please note: Values are as of 01/09/2026 and are of an indicative range. Actual amounts/ values/ percentages/ Charges may vary)
Eligibility criteria for availing loan against shares
Eligibility criteria for Bajaj Finance loan against shares
Meeting the lender’s eligibility criteria is the first step. Here’s a simple checklist for loan against shares eligibility:
| Eligibility criterion | Requirement |
|---|---|
| Age | Between 18 and 90 years |
| Employment | Salaried, self-employed, or business owner |
| Ownership | Must hold approved listed shares |
| CIBIL score | Generally not required |
| KYC compliance | PAN and Aadhaar must be valid and active |
| Income/business turnover | Some lenders may check 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.
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
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Frequently asked questions
General
What information do I need to use an EMI calculator for a loan against FD?
To use an EMI calculator for a loan against FD, you need to input the principal loan amount, the interest rate offered on the loan, and the loan tenure. Additionally, knowing the repayment frequency can be beneficial.
Is using an EMI calculator for a loan against FD accurate?
Yes, using an EMI calculator for a loan against FD is generally accurate. It provides precise calculations based on the inputted data, helping you understand your monthly repayment obligations. However, minor variations can occur due to processing fees or changes in interest rates.
How does the interest rate affect my EMI on a loan against FD?
The interest rate directly impacts your EMI amount. A higher rate means higher EMIs. Since the loan against FD is secured, the interest rate is usually lower than unsecured loans.
Can I prepay or foreclose a loan taken against FD?
Yes, you can prepay or foreclose your loan against FD anytime during the tenure. This helps reduce the total interest payable and clears the debt faster.
Is the EMI amount fixed throughout the loan tenure?
Generally, the EMI remains fixed throughout the loan tenure unless there’s a change in the interest rate due to floating rate terms or renegotiation with the lender.
What is the maximum loan amount I can get against my FD?
You can typically get a loan of up to 75% of your fixed deposit amount. The exact limit may vary based on the lender’s policies and the tenure of your FD.
What is the minimum loan amount you can get against fixed deposit?
The minimum loan amount you can get against a fixed deposit usually starts from Rs. 3,000, though it may vary by lender. It depends on the value of your FD and the terms set by the financial institution.
Will using the EMI calculator affect my credit score?
No, using an EMI calculator has no impact on your credit score. It’s simply a tool for estimation and doesn’t involve any credit check or data sharing with credit bureaus.
How do I apply for a loan against FD after calculating my EMI?
Once you have calculated your EMI, you can apply through your lender’s online portal or visit a branch. The process usually involves minimal paperwork and can be completed digitally in many cases.
Will taking a loan against the FD affect my FD interest earnings?
No, taking a loan against your fixed deposit (FD) does not stop your FD from earning interest. Your FD continues to accrue interest at the contracted rate. However, you must pay interest on the loan availed, which is usually slightly higher than the FD interest rate.
Can I get a loan against a tax-saving FD?
No — loans against 5-year tax-saving FDs with a mandatory lock-in period are generally not permitted. The statutory lock-in restricts premature withdrawal and lending against these deposits, so you may need to explore other borrowing options.
Disclaimer
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