If you have built a healthy stock portfolio over time, it doesn’t just have to sit there. Your shares can do more than just appreciate in value they can give you instant liquidity. That’s where a loan against shares (LAS) comes in. With this facility, you can pledge your listed shares and get quick access to funds, all while retaining ownership.
Need funds without selling your shares? Apply for a loan against share in minutes.
What is a loan against shares?
A loan against shares is a type of loan against securities where your listed shares act as collateral. Based on the current value and type of shares, lenders offer a line of credit or term loan. You can borrow up to a certain percentage of the share value (typically 50–70%), and repay it as per the agreed terms.
Benefits of a loan against share
- Quick access to funds without liquidating your investments
- Interest charged only on the amount utilised
- Continued ownership and market participation
- Ideal for short-term needs like emergencies, tuition, or business cash flow gaps
- Flexible repayment options and minimal paperwork
Borrow only what is needed
It’s easy to get tempted when you see a large eligible loan amount, but the smarter move is to borrow only what you truly need. Over-leveraging can put unnecessary pressure on your repayment plan, especially if market conditions change or the interest compounds over time.
Utilise the loan for productive purposes
Treat this funding tool like a business asset, not a credit card. Using the loan for high-impact goals like consolidating debt, funding a business opportunity, or covering an emergency can help you extract true value. Avoid spending it on short-term consumption or luxury splurges.
Make your shares work smarter, not harder. Get a loan against shares to fund business expansion or invest in high-return opportunities. Apply now
Monitor market conditions
Your shares remain the underlying collateral for this loan. If markets dip significantly, the lender may initiate a margin call requiring you to pledge more shares or repay part of the loan. Stay alert to market movements, diversify your holdings, and ensure your loan-to-value (LTV) ratio remains within safe limits.
Worried about stock market volatility? Choose a lender that offers flexibility in top-up and withdrawal. Explore options!
Plan your repayment
Repayment planning is crucial when availing a loan against securities. Though interest is typically charged on the amount you use (not the sanctioned limit), knowing your EMI and tenure helps you stay in control of your finances. Use digital tools to plan repayments around your income flow.
