Maximising the benefits of a Loan Against Shares

Discover effective strategies for maximising the benefits of the loan.
Leverage your shares to avail funds!
3 minutes
13-June-2025

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.

Understand eligibility and documentation

To avail a loan against shares, you must:

  • Be an Indian resident aged 18–90 years.
  • Own listed shares approved by the lender
  • Submit basic KYC documents and a demat account statement

Most loans are processed quickly especially if you apply online with the required documents ready.

Seek clarity

Before you sign the dotted line, make sure you understand the agreement thoroughly. Look out for hidden charges like processing fees, foreclosure penalties, and margin maintenance clauses. A transparent loan structure helps avoid unpleasant surprises later.

To sum it up

A loan against shares is not just about tapping liquidity it's about doing so with strategy. When used wisely, it offers a perfect blend of flexibility, speed, and asset retention. From emergencies to short-term goals, LAS can be your bridge to financial ease without parting with your valuable investments. Just remember to borrow smart, stay market-aware, and repay on time.

Ready to avail the value of your portfolio? Use your shares to get a loan with low interest and minimal paperwork. Apply now!

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