Loan Against Securities - Get Started Now

---

Purpose of Loan Against Securities

A Loan Against Securities is a valuable financial solution that may be availed for:

- Business expansion or working capital

- Short-term liquidity requirements

- Personal financial needs

- Investment opportunities

- Debt consolidation

- Any lawful purpose (excluding speculative activities, subject to lender policy)

Eligible Securities

Loans may be granted against approved:

- Listed Shares

- Mutual Funds (Equity/Debt/Hybrid – as per lender norms)

- Government Securities & Bonds

- Fixed Deposits

- Insurance Policies (Surrender Value basis)

- Other approved financial instruments

Margin requirements and eligible loan-to-value (LTV) ratios vary depending on the type of security and lender guidelines.

Eligibility Criteria

A. Individual Applicants

- Age between 21 to 70 years (as per lender norms)

- Ownership of eligible securities in demat or physical form

- Satisfactory credit score

- Active demat account (for market-linked securities)

- Compliance with margin requirements

B. Business Entities (Proprietorship / Partnership / Company / LLP)

- Valid constitution documents

- Ownership of eligible securities

- Satisfactory financial profile

- Compliance with statutory requirements

- Acceptable credit history of promoters/directors

Documents Required for LAS Application

A. KYC Documents

- Duly filled and signed application form

- PAN Card (Individual & Business, if applicable)

- Aadhaar/ Valid Identity & Address Proof

- Passport-size photographs

B. Financial Documents

- Bank statements (last 6 months)

- Income proof (ITR / Salary Slips, if required)

- Existing loan details (if any)

C. Securities-Related Documents

- Demat account statement

- List of securities proposed for pledge

- Fixed Deposit receipt (if applicable)

- Policy bond document (for insurance-backed loan)

- Any additional documents required by lender

Key Features & Considerations

- Loan Amount: Based on LTV ratio (generally 50%–75% of security value depending on type)

- Tenure: Typically short to medium term (renewable in many cases)

- Interest: Charged only on utilized amount (in case of overdraft facility)

- Quick processing compared to traditional loans

- Securities remain pledged until loan closure

- Subject to margin calls in case of market-linked securities

Important Note

Loan sanction is subject to credit assessment, valuation of securities, applicable margin norms, and the lender’s internal policies. Market volatility may impact drawing power in case of equity-based securities, making it a crucial aspect to consider when utilizing this secured credit facility.