How to Get a Loan Against Securities by Startupflora

1. Understanding Loans Against Securities

If you're looking to access liquidity without liquidating your investments, a Loan Against Securities—also known as Loan Against Shares, Loan Against Mutual Funds, Loan Against Bonds, or Loan Against Debentures—might be the ideal solution. It’s a secured loan against investments, allowing you to retain ownership and keep earning returns.

Financial institutions such as banks and NBFCs offer these digital loans against securities with instant loan against securities options and instant approval loan features.

2. Why Borrow This Way? Key Value & Benefits

Preserve Ownership of Shares and continue earning dividends instead of selling.
No need to liquidate investments—no capital gains tax or disruption to your portfolio.
Quick loan process, often instant or same-day disbursal.
Up to ₹20 Lakh from banks like ICICI or SBI, and ₹5 Crore to ₹1000 Crore via NBFCs like Bajaj Finserv.
Attractive interest rates, interest charged only on the amount used, flexible repayment and overdraft facility allow cost-efficient utilization.

3. Process: Online, Convenient, and Secure

Most lenders modernized their application processes:

HDFC Bank offers completely digital loan against shares and mutual funds with online pledging and instant disbursal.
ICICI Bank enables customers to use Internet Banking or mobile app to digitally pledge securities and tap the overdraft account.
Bajaj Finserv offers instant disbursal (within 24 hrs), loan limits up to ₹1000 Cr, flexible tenure (7 days to 36 months), and even share swap options.
Zerodha Capital supports a seamless LAS process—choose collateral, sign digitally, receive funds in ~1 working day.

4. Key Features & Terms to Know

Loan‑to‑Value / Margin Requirement (LTV)

Up to 50% for equity shares and ETFs.
For debt mutual funds or FMPs, LTV can go up to 80%.
Some providers may offer up to 75% LTV for bonds.

Interest Rate on Loan Against Securities

Bajaj Finserv charges 8–15% p.a., with minimal processing fees.
Mirae Asset offers 10.25% p.a. on utilized funds with no prepayment charges.

Flexible Repayment Options

Interest-only payments on withdrawn funds via overdraft mechanisms.
Many lenders offer no prepayment or foreclosure charges.

Pledge Shares Online

Securities must be in Demat Account and from lender’s approved securities list.
Pledge is done online through NSDL/CDSL using OTP authorization.

5. Eligibility & Documentation

Eligibility for Loan Against Securities:

Indian residents, aged 18–70, salaried or self-employed.
No default history and eligible securities in demat.

Documentation Required:

PAN & Aadhaar Mandatory, along with Identity & Address Proof for LAS.
Minimal paperwork for minimal documentation loan approvals.
KYC for Loan Against Shares is compulsory.

6. Bank & NBFC Options in India

ICICI Loan Against Shares: Overdraft facility, loan up to ₹20 Lakh, interest on utilized amount, online pledge.
HDFC Loan Against Securities: Fully digital, high LTV (up to 80%), no prepayment charges.
SBI Loan Against Securities: Competitive rates, various collateral options.
Bajaj Finserv Loan Against Shares: Large limits (up to ₹1000 Cr), flexible tenure, fast disbursal.
Axis Bank Loan Against Securities, Yes Bank Loan Against Securities, Kotak Mahindra LAS, IDFC FIRST Bank LAS, Federal Bank Loan Against Shares, Bank of Baroda Loan Against Securities – all offer personalized LAS products with varying features and limits.

7. What’s New: LAS Meets UPI (2025 Update)

Starting August 2025, NPCI rules will allow users to withdraw funds via UPI from credit lines obtained against assets like shares or mutual funds. This offers unprecedented flexibility and easier access to overdraft amounts—depending on when banks implement the feature.

Conclusion: Is LAS Right for You?

If you want:

Access to liquidity without selling your investments
A structured, secure, and low‑cost borrowing method
Quick digital application and flexible repayment
The ability to continue earning returns

…then a Loan Against Securities could be a smart, hassle‑free financing choice.

Startupflora’s Quick LAS Checklist

Collateral ready: Demat securities in approved list
Eligibility confirmed: Indian resident, 18–70, PAN & Aadhaar
Choose lender: ICICI, HDFC, Bajaj, etc., based on LTV & needs
Apply digitally, pledge, and get instant or fast disbursal
Repay wisely—only for the amount and duration used

Let us know if you'd like help comparing offers or determining your eligibility. Borrow smart—preserve your portfolio, and keep your investments working for you.