Facing an urgent cash crunch? You have three choices: take a Loan Against Securities (LAS), take a personal loan, or sell your investments. Here's which one costs you least.
Scenario: Need ₹5 Lakh for 12 Months
| Option | Cost | Investment Impact |
|---|---|---|
| LAS @ 10.5% | ~₹52,500 interest | Portfolio intact, still grows |
| Personal Loan @ 14% | ~₹70,000 total interest | None |
| Sell equity MF | LTCG 10% + exit load | Miss future compounding |
When LAS Wins Clearly
Portfolio value exceeds ₹10L, need is temporary (6–18 months), and your investments are in profitable territory (selling would trigger gains tax).
When Personal Loan Is Better
Small portfolio, long-term cash need (2+ years), or when market is volatile and margin-call risk is high.
Never Liquidate Investments for This
Short-term emergencies, home improvement, education fees — use LAS or a personal loan and let compounding work for you.