Loans Against Securities (LAS)
Protecting Your Assets, Powering Your Peace.
What Is a Loans Against Securities (LAS) ?
A Loan Against Securities (LAS) is a credit facility where you can pledge your investments—such as shares, mutual funds, bonds, or insurance policies—as collateral to get instant liquidity without selling them. It allows you to meet financial needs while still enjoying potential returns and ownership of your investments.
Key Features of Loans Against Securities
Continue earning dividends, interest, and capital appreciation while availing a loan.
Typically lower than personal loan rates, since the loan is secured.
Approvals are fast because the collateral is already liquid and easy to value.
Withdraw funds as needed through an overdraft (OD) or credit line facility.
Depending on the security type, lenders may offer up to 50–80% of the investment value.
Eligible Securities for Loans Against Securities
You can avail a loan against the following:
Listed stocks held in your demat account.
Both equity and debt mutual funds (depending on lender-approved list).
Government securities, corporate bonds, tax-free bonds, NCDs, etc.
Subject to lender guidelines.
Traditional (endowment) policies with surrender value.
How Loans Against Securities Works
Choose the securities you want to pledge.
The lender marks a lien on those securities.
Based on their market value, a drawing power (DP) is assigned.
You can withdraw funds anytime up to your DP limit.
Interest is charged only on the amount you use.
Once the loan is repaid, the lien is removed and securities are released.
Benefits of Loans Against Securities
You do not liquidate investments; you continue benefiting from market growth and returns.
Lower interest rates compared to personal loans or credit card borrowing.
Funds can be used for business, emergencies, education, travel, or any personal need (except speculation).
Interest is calculated only on the amount you withdraw from the sanctioned limit.
Most lenders allow early repayment without penalties.
Risk Factors to Consider
If the value of your pledged securities falls, lenders may issue a margin call asking you to pledge more or repay part of the loan.
Equity shares and equity mutual funds generally get lower loan-to-value ratios.
Not all securities may be eligible; approval depends on the lender.
Loan-to-Value (LTV) Expectations
Typical LTV ratios (may vary by lender):
| Equity Shares | 40–50% |
| Equity Mutual Funds | 40–50% |
| Debt Mutual Funds | 70–80% |
| Bonds/NCDs | 60–75% |
| Insurance Policies | 70–80% |
Who Should Consider LAS?
Investors needing short-term liquidity without selling assets
Business owners requiring working capital
Individuals planning large expenses (education, medical, travel)
Traders/investors needing temporary cash flow without exiting markets
Anyone holding large investments who wants cheaper credit options
A Loan Against Securities is a smart, efficient, and economical way to access funds without disturbing your long-term wealth-building strategy. It offers quick liquidity, flexible usage, and lower borrowing costs—making it a preferred choice for investors and professionals alike.
Investment Solution
Mutual Funds & SIP
A Mutual Fund is an investment vehicle that pools money from multiple investors and invests it in a diversified portfolio of assets such as equities
Fixed Deposit & Corporate FD’s
Fixed Deposits (FDs) have long been a preferred choice for conservative investors seeking assured returns and capital protection. Offered by banks and NBFCs, FDs allow you to deposit
Bonds / NCD
Bonds are fixed-income instruments issued by governments or companies to raise capital, paying periodic interest and returning principal at maturity.
Government Bonds & Debt Instruments
In today’s unpredictable market landscape, many investors look for avenues that offer stability, regular income, and capital preservation.
Insurance
Life Insurance
Life insurance is a financial protection plan that ensures your loved ones remain financially secure in case of your untimely demise.
Health Insurance
Health insurance provides financial protection against medical expenses due to illnesses, accidents, and hospitalization. Even if you are healthy today, medical emergencies can arise at any time.
General Insurance
General Insurance provides financial protection against non-life risks such as accidents, health emergencies, property damage, theft, or liability.
Loans
Loans Against Security
A Loan Against Security is a credit facility where you pledge your financial investments—such as mutual funds, shares, bonds, insurance policies, or fixed deposits
Loans Against Mutual Funds
At Wealthmart Global, our Loans Against Securities (LAS) solution empowers you to access funds without having to liquidate your long-term investments.