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Loan Details
Loan Against Securities Calculator
Calculate your EMI and total interest for a loan against securities with flexible repayment options.
Instant Approval
No Hidden Charges
100% Digital Process
Representative Example:
Borrow ₹50,00,000 over 12 months at 25.8% APR. Total repayment: ₹57,25,970.74 with monthly EMIs of ₹4,77,164.23.
EMI Calculator
₹50,00,000
12
25.8%
Monthly EMI
₹4,77,164.23
Total Interest
₹7,25,970.74
What is a Loan Against Securities?
Loan Against Securities (LAS) is an overdraft facility offered against financial assets like shares, mutual funds, or bonds. You pledge these assets to get instant liquidity without selling them.
Unlike term loans, you don't pay EMIs. You only pay interest on the amount utilized for the number of days used. The principal can be repaid at the end of the tenure or renewed.
Eligibility depends on:
- Value of approved securities (Shares/MFs)
- Type of security (Equity/Debt)
- Applicant's age (18-65 years)
- Demat account status
A major benefit is that you continue to earn dividends and returns on your pledged securities while using the loan.
Financial Guide
Loan Against Securities Rates
Interest rates range between 9% to 12% p.a. You pay interest only on the amount you utilize, not the entire limit sanctioned.
Leveraging Your Portfolio
Get liquidity without selling your long-term investments:
1
Approved List of Securities
Lenders have a specific list of approved shares and mutual funds. Check if your portfolio matches their approved list.
2
LTV Ratios
RBI caps LTV at 50% for equity shares and 75% for debt mutual funds. You won't get funding on the full value.
3
Digital Lien Marking
Opt for lenders offering digital lien marking via NSDL/CDSL for a paperless and instant process.
4
Margin Call Risks
If the market crashes, the lender may ask you to pledge more shares or pay cash (Margin Call). Be prepared for volatility.
5
Overdraft Facility
This is usually an overdraft. Interest is calculated daily on the utilized amount. Use it for short-term needs only.
LAS Eligibility Criteria
Eligibility criteria Get funds against your investments:
Ownership: Shares/Mutual Funds must be in the name of the applicant.
Security Type: Must be on the lender's 'Approved List' of securities.
Demat Account: Must have an active Demat account.
Age: 18 years and above.
Nationality: Resident Indian.
LAS Fees
Since this is often an overdraft, fees are minimal:
| Particulars | Charges |
|---|---|
| Processing Fees | Flat ₹ 500 to 0.5% of limit |
| Pledge Creation | ₹ 50 - ₹ 100 per ISIN (Depository Charge) |
| Pledge Invocation | As per DP tariff |
| Annual Renewal Fee | ₹ 1,000 - ₹ 2,000 p.a. |
| Foreclosure | Nil |
Other fees and charges levied by the lenders include documentation charges, verification charges, duplicate statement charges and NOC certificate charges.
Loan Against Securities vs Personal Loan
Why pledging assets is cheaper than an unsecured loan.
| Loan Against Securities | Personal Loan |
|---|---|
| Rate: 9% - 11% | Rate: 11% - 16% |
| Pay interest only on used amount | Pay interest on full loan amount |
| No foreclosure charges | Foreclosure charges apply |
| Requires Shares/MFs | Requires Income Proof |
Liquidity Without Selling Investments
Why sell your stocks when the market is down? Pledge them instead. We enable you to mark a lien on your shares or mutual funds digitally and get money in your bank account, keeping your portfolio intact.
Benefits of Loan Against Securities
- Pay interest only on the amount utilized
- Keep earning dividends and bonuses on stocks
- No foreclosure charges
- Instant digital lien marking
- High LTV ratios against approved securities
- Overdraft facility for emergency needs
Types of Securities Loans
Get liquidity without selling your long-term investments.
Docs for Loan Against Securities
Focuses on the ownership proof of the pledged assets.
| Requirements | Individual Applicant | Non-Individual (HUF/Company) |
|---|---|---|
| Identity Proof | PAN, Aadhaar | Deed/MOA, PAN of Entity, Karta/Director KYC |
| Security Proof | Demat Holding Statement, Mutual Fund Statement | Demat Holding Statement, Board Resolution to pledge |
| Bank Proof | Cancelled Cheque of account where dividend is received | Cancelled Cheque of account where dividend is received |
Pledging Investments
Approved List
- Banks only lend against securities on their approved list.
- Penny stocks or illiquid funds are not accepted.
LTV Ratios
- 50% of value for Equity Shares.
- Up to 80-90% for Debt Funds and Bonds.
Margin Call
- If stock market crashes, value of pledged assets drops.
- Bank may ask you to pledge more shares or pay cash immediately.
Digital Process
- Lien marking is done digitally via NSDL/CDSL.
- Funds are often available as an Overdraft.
LAS Interest Rates
Get an overdraft limit against your shares/mutual funds from these providers.
| Lender | Interest Rate |
|---|---|
| HDFC Bank | 9.50% onwards |
| Tata Capital | 10.50% onwards |
| Bajaj Finance | 9.00% onwards |
Eligible Securities
Approved list of Equity Shares.
Mutual Funds (Equity and Debt).
Life Insurance Policies (Surrender Value).
KVP/NSC and Tax-Free Bonds.
Pledging Process
Check the bank's approved list of scripts.
Open a current account/overdraft account with the bank.
Mark a lien on the securities digitally (via NSDL/CAMS).
Funds are released as an overdraft limit.
How to Calculate Loan Against Securities EMI Online?
You can calculate your loan against securities EMI using a free online loan against securities EMI calculator. You just need to enter your interest rate, loan amount and tenure in the calculator to get instant and accurate results.
LAS vs Selling Investments
Should you pledge your shares or sell them when you need cash?
| Parameter | Loan Against Security | Selling Investments |
|---|---|---|
| Ownership | Retain ownership & future gains | Ownership lost |
| Taxation | No Capital Gains Tax | Capital Gains Tax applies |
| Dividends/Bonus | You continue to receive them | You lose future income |
| Cost | Interest on used amount | Opportunity cost of growth |
Liquidity Without Selling
Karan Johar — Market Volatility
"The market was down, and I didn't want to sell my portfolio at a loss. I pledged my mutual funds digitally and got an overdraft limit in 4 hours to manage my cash crunch."
Deepa S. — Short Term Need
"I needed funds for just 2 months. LAS was perfect because I only paid interest on the amount I used, not the whole limit. Much cheaper than a personal loan."
Pledging Shares Smartly
Don't sell your investments; pledge them. Here is how:
- Check the bank's 'Approved List' of shares and mutual funds.
- Prefer an Overdraft facility so you pay interest only on what you use.
- Ensure your Demat account is active and KYC compliant.
- Monitor the market; a crash might trigger a margin call.
- Use this for short-term liquidity, not long-term needs.
LAS Key Points
- Interest rates are lower (9-11%) compared to personal loans.
- You retain ownership and continue to earn dividends/bonuses.
- No foreclosure charges or prepayment penalties.
- LTV is capped at 50% for equity shares and 75% for debt funds.
- Lien marking is a fully digital process via NSDL/CDSL.
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