₹10,000 - ₹25 Cr
Loan of up to 80% of policy value| Funding against policies under lock-in period
Overview
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What is a loan against shares and how does it work?
In summary
A Loan Against Shares converts eligible investments into collateral for short-term liquidity while allowing you to retain ownership.
- Loan amounts range from Rs. 25,000 to Rs. 1,000 crore, depending on pledged value and applicant category.
- Borrowing may reach 50% of the eligible market value of pledged shares.
- Interest applies only to the amount utilised and for the period of utilisation.
- Available tenure ranges from 7 days to 36 months, subject to approval and renewal terms.
- Falling share prices may reduce drawing power or create a loan-to-value shortfall.
Use this facility for defined funding requirements supported by a clear repayment plan and sufficient collateral cover.
Pledged shares remain exposed to market fluctuations. Timely interest payments and loan-to-value monitoring remain essential throughout the facility.
What is a Loan Against Shares and how does it work?
A Loan Against Shares is a secured facility where approved listed shares serve as collateral. The lender records a pledge through your demat account. You retain ownership and may continue receiving declared dividends. Market appreciation remains uncertain and cannot be guaranteed.
The lender determines the eligible amount using the current market value and applicable loan-to-value ratio. The present limit may reach 50%. Interest rates currently range from 7% to 12.25% per annum. Your approved rate depends on the portfolio, profile, and facility terms.
Simple example
Suppose your eligible approved shares have a market value of Rs. 10 lakh. Borrowing may reach Rs. 5 lakh at 50%. If you withdraw Rs. 2 lakh, interest applies to the utilised Rs. 2 lakh rather than the complete sanctioned limit.
How loan against shares can support your financial needs?
How to apply for Bajaj Finance loan against shares
The facility bridges temporary cash requirements without requiring the immediate sale of approved holdings.
- Planned liquidity: Access funds for a defined expense while retaining ownership of pledged shares.
- Flexible utilisation: Withdraw an amount within the available drawing power according to your requirement.
- Interest control: Pay interest only on the amount utilised and for the actual utilisation period.
- Portfolio continuity: Continue holding shares and receiving declared benefits, subject to applicable terms.
Digital management: Review drawing power, interest rate, pledged value, and account statements through the customer portal.
This support remains linked to the market value and eligibility of the pledged portfolio.
Avail of instant funds with a loan against shares
A Loan Against Shares provides liquidity by allowing you to pledge eligible listed shares instead of selling long-term investments. The lender determines your borrowing limit using the approved shares’ market value and applicable loan-to-value ratio.
Funds become available after verification, documentation, and successful pledge creation through your demat account.
This facility can support urgent or short-term requirements through several practical advantages:
- Retain ownership: You continue owning pledged shares and may receive dividends, subject to issuer declarations and facility terms.
- Preserve market exposure: Your portfolio remains invested, allowing participation in possible price movements without guaranteeing appreciation.
- Access flexible funding: Withdraw funds within the available limit, depending on the facility structure and lender’s conditions.
- Avoid an immediate sale: Meet temporary liquidity requirements without selling approved shares during unfavourable market conditions.
- Manage funds digitally: Monitor withdrawals, repayments, drawing power, and pledged holdings through the lender’s online account portal.
The pledged shares cannot ordinarily be sold or transferred until the lender releases them after repayment.
Benefits of loan against shares
The main Loan Against Shares benefits relate to liquidity, continued ownership, and controlled utilisation.
- No immediate share sale: You avoid liquidating approved holdings solely for a temporary funding requirement.
- Flexible tenure: Available periods range from 7 days to 36 months under current product terms.
- Portfolio-based limit: A rise in eligible share value may increase drawing power after lender reassessment.
- Repayment flexibility: You may withdraw and repay within the available facility, subject to the approved structure.
These benefits do not remove market risk. Declining collateral value can reduce the sanctioned drawing power.
Your shares can fund your goals from education to business. Apply for a loan against shares to achieve them faster.
Top purposes for taking a loan against shares
Features & Benefits for Bajaj Finance loan against shares
The purpose of a Loan Against Shares should be specific and supported by predictable repayment capacity.
- Medical requirements: Meet hospital, treatment, or recovery-related expenses without immediately selling approved holdings.
- Education costs: Pay tuition, accommodation, equipment, or other planned education expenses.
- Business working capital: Support inventory, supplier payments, payroll, or short operating-cycle requirements.
- Home improvements: Finance essential repairs, accessibility upgrades, or planned renovation work.
- Tax and statutory payments: Meet scheduled obligations when receipts and payment dates do not align.
- Family events: Manage costs for a wedding, relocation, or another planned commitment.
Avoid borrowing for speculative investment or unplanned spending. The pledged portfolio can be liquidated when dues or collateral shortfalls remain unresolved.
How to avail loan against shares online?
Step 1: Enter your details
Provide your mobile number, personal information, and required consent through the online application.
Step 2: Fetch your holdings
Connect the relevant demat account and review the shares appearing within the approved list.
Step 3: Review the offer
Check the available limit, interest rate, tenure, fees, and repayment conditions before proceeding.
Step 4: Complete verification
Submit the required KYC details, verify your bank account, and complete the applicable e-mandate.
Step 5: Sign the agreement
Read the loan agreement carefully and complete the electronic signature process.
Step 6: Pledge approved shares
Authorise the electronic pledge through the applicable depository process.
Step 7: Request disbursal
Choose the required amount within your drawing power. Approved funds are credited after successful pledge processing.
Access funds up to 50% of your portfolio's value without selling your shares! Apply now
Conclusion
Eligibility criteria for Bajaj Finance loan against shares
The purpose of a Loan Against Shares is to meet temporary requirements without selling approved listed investments. It can support medical costs, education, working capital, home improvements, statutory payments, and planned commitments. It offers portfolio continuity, flexible utilisation, and interest charged only on the amount used. Market declines can reduce drawing power and create a collateral shortfall. Delayed resolution may place pledged shares at risk of liquidation. Borrow only for a defined requirement, maintain a repayment buffer, and monitor the pledged portfolio throughout the loan tenure.
Why sell your investments when you can borrow against them? Get instant liquidity with a loan against shares fast, flexible, and secured. Apply now to get started
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Frequently asked questions
Eligibility
Management
Charges
For which purpose we can use a loan against shares?
A loan against shares can be used for various purposes, including personal expenses, funding large purchases, educational fees, medical bills, or business expansion. It offers the flexibility to meet urgent cash needs without liquidating your investments, allowing your portfolio to continue growing.
Can I get a loan against shares if I need funds urgently?
Yes, a loan against shares can be considered when funds are required for a short-term or urgent financial need. Since the loan is secured against eligible shares, the process may provide access to funds without requiring you to liquidate your investments, subject to lender eligibility and approval criteria.
Can I use a loan against shares for business purposes?
Yes, you can use the loan for business expansion, working capital, or any financial need, making it a flexible funding option without selling your investments.
Does taking a loan against shares affect my ownership of the shares?
No, pledging shares does not generally transfer their ownership to the lender. You continue to own the pledged securities while the loan is outstanding. However, the shares remain as collateral, and applicable terms may affect their release, sale or treatment if the loan is not repaid.
Do I need to sell my shares to get a loan against them?
No, your shares remain in your ownership. They are only pledged as collateral, allowing you to access funds while continuing to benefit from dividends and appreciation.
What happens to my pledged shares after I repay the loan?
Once you fully repay the loan, your pledged shares are released back to you, restoring your complete ownership and control over your investment portfolio.
What are the common reasons for taking a loan against shares?
People often take loans against shares to meet urgent liquidity needs without selling their investments. Common reasons include business expansion, meeting working capital requirements, funding medical emergencies, higher education expenses, or managing short-term cash flow gaps while retaining ownership of the shares.
Can I use the loan against shares for personal goals like weddings or travel?
Yes, loans against shares can be used for personal goals such as weddings, travel, home renovation, or large purchases. Since it’s a secured loan, lenders usually do not restrict usage, making it a flexible financing option for both planned and unplanned expenses.
Is there any restriction on how I can use the loan amount?
Generally, there are no strict restrictions on how you use the loan amount, unless specified by the lender. You can utilise the funds for personal or business purposes. However, using the loan for speculative trading or unlawful activities is strictly prohibited under lender and regulatory guidelines.
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.
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