At A Glance
- Purpose
- Borrow by pledging stocks, mutual funds or bonds, without selling them
- Who can apply
- Securities held in your own name and on the lender's approved list
The Short Version
What Loan Against Securities actually does for you.
Loan Against Securities (LAS) is an overdraft facility that lets you borrow money by pledging financial assets like stocks, mutual funds or bonds, without selling them. For mutual funds, the lender marks a lien on your units through the registrar (CAMS or KFintech). Your investments stay in place, and the limit is there when you need it. Lenders accept only certain securities and set their own limits.
What's included
- You keep earning dividends on your assets
- You keep ownership of your goal-based investments
- Rates are usually lower than personal loans
- No prepayment charges and no foreclosure charges, as per lender policy
- Interest is charged only on the amount you use, and only for the days you use it
- Promoter funding: a special type of LAS where promoters pledge company shares to raise funds, subject to the lender's approved company list
- ₹1 Cr to ₹3 Cr: a mix of digital and paper process, with no ITR required
- Above ₹3 Cr: a mix of digital and paper process, with 3 years of ITR required
Do you qualify?
- Stocks, ETFs or mutual fund units held in the applicant's own name
- A demat account for shares and ETFs, or a mutual fund folio for units
- Securities or schemes that are on the lender's approved list
- For promoter funding, a company that is on the lender's approved list
- Resident Indian, 21 years or older
Fees and other charges
Besides interest, a lender may charge a few fees. It helps to know them before you apply, so there are no surprises.
Processing fee
A percentage of the loan or limit plus GST, often somewhere between about 0.5% and 1.5%. Some lenders cap it at a fixed amount.
Pledge and lien charges
A small fee for marking your shares, bonds or mutual funds as pledged, and for releasing them when you repay.
Top-up or shortfall
If the value of what you pledged falls, the lender may ask you to add more or repay part of the loan. This is not a fee, but it is worth knowing about.
These are general guides and every lender sets its own fees. Your expert will share the exact charges in writing before you sign.
Why Growth Capital Services
One conversation, many lenders to compare.
We are a loan consultant, not the lender. We help you compare options from 75+ Banks and NBFCs, prepare your documents, and follow your application through each step.
Important note: Interest rate, loan amount, tenure, charges, eligibility, approval and disbursement depend on the policy of the respective Bank or NBFC, your profile, credit assessment and the applicable terms. Growth Capital Services is a loan consultant and does not lend money itself. The details on this page are for general information.
Run the numbers
Calculators for your Loan Against Securities
Try your own figures before you apply — nothing is saved or sent.
Step-by-step guide
Loan Against Securities process, step by step.
You borrow against your stocks, ETFs or mutual funds while staying invested. Here is how it works.
- 1
Share your holdings
Tell us which stocks, ETFs or mutual funds you hold and how much you need.
- 2
Value the portfolio
We check which holdings are accepted and the limit they can support.
- 3
Choose a lender
We compare lenders on rate and the share of the value they will lend.
- 4
Pledge the securities
You submit KYC and pledge the securities. Up to ₹1 Cr is fully digital; larger limits need some paperwork too.
- 5
Limit set and funds used
The lender sets your limit, and you draw what you need.
With GCS, your expert looks at your profile, matches it with suitable lenders, and coordinates with the banks for you. That means less confusion and more confidence when you apply.
Worth Comparing
The rest of Education, Vehicle & Other Loans
So you can weigh Loan Against Securities against everything else we arrange in this category before deciding.
Still deciding on Loan Against Securities? Ask us directly.
Call +91 88280 01700 · Monday to Saturday · 10:00 AM – 6:00 PM