In today’s fast-paced financial landscape, liquidity is often a necessity for investors, entrepreneurs, and salaried professionals alike. Yet, selling long-term assets to meet short-term financial needs can disrupt wealth-building strategies and lead to missed opportunities. Fortunately, there is a smarter solution: leveraging your financial assets to secure a loan without liquidating them. This approach not only provides immediate liquidity but also preserves your investments for future growth.
How to Get a Loan Without Selling Your Long-Term Assets
Explore how to access funds without selling long-term assets by using secured borrowing options, helping you maintain ownership while meeting short-term financial needs efficiently.
Leverage your investments to avail funds!
Overview
What is a loan without selling long-term assets?
A loan without selling long-term assets, commonly referred to as a loan against securities, allows individuals to pledge their financial investments—such as shares, mutual funds, fixed deposits, insurance policies, or ESOPs—as collateral to secure funds. Unlike traditional loans, this option enables you to access liquidity without parting with your investments.
The primary advantage of this method is that your portfolio continues to grow while you meet your financial requirements. Whether you need funds for personal expenses, business expansion, or other needs, this type of loan ensures that your long-term financial goals remain intact.
Quick tip: Many investors sell their investments when they need liquidity. However, there may be a way to access funds without liquidating your portfolio. A loan against securities allows you to leverage your financial assets to access liquidity while continuing to remain invested. Apply now
Long-term assets you can pledge for a loan
Several types of long-term assets qualify as collateral for loans, offering flexibility and convenience. These assets not only hold value but also provide a reliable foundation for securing funds. Here is a list of commonly accepted assets:
| Asset Type | Liquidity | Flexibility | Suitability as Collateral |
| Listed Shares | High | Can be pledged partially | Ideal for short-term needs |
| Mutual Funds | Moderate to High | Can pledge equity or debt funds | Suitable for diverse goals |
| Fixed Deposits | High | Easy to pledge | Best for low-risk borrowers |
| Insurance Policies | Moderate | Depends on surrender value | Ideal for long-term planning |
| ESOPs | Moderate | Based on vesting period | Suitable for wealth creation |
By pledging these assets, you can unlock funds while retaining ownership and the potential for future growth.
Benefits of getting a loan without selling assets
Opting for a loan against long-term assets offers numerous advantages, making it a preferred choice for financially savvy individuals. Here are some of the key benefits:
| Benefit | Description |
| Quick access to liquidity | Funds can be availed promptly without selling investments. |
| Portfolio continuity | Your investments remain intact, continuing to generate returns. |
| Flexible tenure options | Borrowers can choose repayment terms that suit their financial situation. |
| Cost-effective borrowing | Interest rates are often lower compared to unsecured loans. |
| No impact on ownership | Retain full ownership and control of your pledged assets. |
By leveraging your investments, you can address immediate financial needs without compromising your long-term financial strategy.
Quick tip: Your investment portfolio can serve more than one purpose. Beyond building long-term wealth, it may also help you access funds when financial needs arise.
Explore how your listed shares can help unlock liquidity while you remain invested. Apply now
How much loan can you get against long-term assets?
The loan amount you can secure depends on the Loan-to-Value (LTV) ratio. The LTV is decided as per RBI guidelines and policy approved by board. Here is a general overview of typical LTV ratios:
| Asset Type | Typical LTV Ratio | Funding Limit |
| Listed Shares | Up to 50% | Subject to market value |
| Mutual Funds | Up to 50% (equity) | Higher for debt funds |
| Fixed Deposits | Up to 75% | Based on FD amount |
| Insurance Policies | Up to 80% | Depends on surrender value |
| ESOPs | Varies | Depends on valuation |
Understanding the LTV ratio helps borrowers estimate how much funding they can access against their pledged assets.
Eligibility and documents required
Before applying for a loan against long-term assets, it is essential to meet certain eligibility criteria and prepare the required documentation. Here is an overview:
| Criteria | Details |
| Age | 21–90 years |
| Nationality | Indian resident |
| Employment Status | Salaried or self-employed |
| Assets | Ownership of eligible listed securities without encumbrance |
Required Documents:
- PAN
- Any one of the Officially Valid Documents (Aadhaar, Passport, Driving License, Voter ID Card, NREGA Job Card, Letter issued by National Population Register)
- Proof of ownership of the pledged asset
- Bank statements for the last six months
Ensuring that you meet these requirements and have the necessary documents ready can streamline the loan application process.
How to apply for a loan without selling long-term assets
Applying for a loan against securities is a straightforward process. Here is a step-by-step guide to help you navigate the application:
| Step | Description |
| 1. Research lenders | Compare lenders and their offerings to find the most suitable option. |
| 2. Check eligibility | Review the eligibility criteria and ensure you meet all requirements. |
| 3. Prepare documents | Gather the necessary documents for submission. |
| 4. Submit application | Apply online, offline, or through the lender’s mobile app. |
| 5. Verification and approval | Wait for the lender to verify your documents and approve your application. |
| 6. Receive funds | Once approved, the loan amount will be disbursed to your account. |
Many investors choose to leverage mutual fund investments instead of redeeming them during temporary financial needs. This approach allows them to maintain their long-term investment strategy while accessing funds when required. Apply now
Conclusion
Leveraging long-term financial assets to secure a loan is a strategic move for those who seek liquidity without compromising their investment goals. By pledging assets such as shares, mutual funds, or fixed deposits, you can unlock funds while ensuring your portfolio continues to grow. This approach not only preserves your wealth-building strategies but also provides the flexibility to address immediate financial needs.
Your investment portfolio can be more than just a wealth-building tool. With the right financial strategy, it may also help you meet short-term liquidity needs without disrupting long-term financial goals. Apply now
Frequently asked questions
Can I get a loan without selling my long-term investments?
Yes, a Loan Against Shares or other long-term assets lets you leverage your investments as collateral to access liquidity while retaining ownership of your assets.
Which long-term assets can I pledge to get a loan without selling them?
You can pledge assets such as listed shares, mutual funds, fixed deposits, insurance policies, and ESOPs to obtain a loan against securities.
What is the loan amount I can get against my mutual funds or shares?
The loan amount depends on the Loan-to-Value (LTV) ratio, which varies by asset type and its current market value. Check with your lender for specific LTV details.
Can I get a loan against my insurance policy without surrendering it?
Yes, certain insurance policies can be pledged as collateral to obtain funding without surrendering them, allowing you to retain policy benefits.
Can I use my ESOP shares to get a loan without selling them?
Yes, you can pledge ESOP shares as collateral to secure a loan while retaining your ownership and potential growth benefits from these shares.
Related Videos
What is the ideal time to avail Loan Against Securities?
Explore NSE approved securities you can pledge
Loan Against Securities vs Personal Loan
Need funds? Get loan against securities.
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.
- 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-qualified 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.
