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Get Financial Guidance and Advice on Loan Against Shares and
Securities from our experts - Contact Us
Key Highlights
Get a loan based on the value of your Shares & Securities
Use your investments as collaterals to secure a loan
Easy and hassle-free documentation
Simple repayment options with EMIs
Get options from 25+ Banks/NBFCs for your Business Loan requirement
Attractive Interest Rates
What is a Loan Against Shares & Securities?
A Loan Against Shares & Securities is a type of short term secured loan offered by Banks/NBFCs against marketable Shares & Securities owned by the borrower. Here the borrower pledges his/her investment in favour of the lender and borrows funds to meet his personal financial needs without having to sell off their investments. The approved list of Securities qualifying for Loan Against Shares & Securities include:
- Equity Shares - Get loan up to 50% of the Present Market Value of Shares
- Equity Mutual Funds - Get loan up to 50% of Net Asset Value (NAV)
- Debt Mutual Funds/FMPs - Get loan up to 80% of Net Asset Value (NAV)
- Life Insurance Policies - Get loan up to 80% of Surrender Value
- National Security Certificates - Get loan up to 70% of Present Value
- Kisan Vikas Patra - Get loan up to 70% of Present Value
- NABARD's Bhavishya Nirman Bonds - Get loan up to 65% of Present Value
- Non-Convertible Debentures - Get loan up to 70% of Present Value
Loan Against Shares & Securities is extended in the form of an Overdraft Facility where the borrower can withdraw the money from their current account as and when they require. The overdraft facility availed can be used by them for various purposes viz. personal expenses, medical expenses, paying back a debt, funding a child's education, etc. The maximum loan amount provided by the Banks/NBFCs under Loan Against Shares & Securities can go up to 80% of the Security Value.
Are you Eligible for Loan Against Shares & Securities?
Banks and NBFCs (Non-Banking Finance Companies) offer Loan Against Shares & Securities to Salaried, Self-Employed, and Business persons depending upon their Monthly Income, Property Value, Credit Score, etc. These eligibility criteria differ from Bank to Bank.
How does the Loan Against Shares & Securities work?
Loan Against Shares & Securities is usually taken for a short-term Personal or Business need. It is extended by Banks/NBFCs as an overdraft facility against marketable Shares & Securities kept as collateral security. The loan tenure is usually 1 year but can be renewed depending upon the terms of the agreement.
- Digital Loan Against Shares/Mutual Funds - Pledge your Shares/Mutual Funds to digitally apply and get a loan that transforms into an overdraft facility.
- High-Value Loan - Value of Loan Against Shares & Securities can go up to 70-80% depending upon the Shares & Securities pledged. The minimum loan amount is INR 50,000.
Loan Against Shares & Securities Eligibility Criteria with Top Banks/NBFCs
| Age | 
Minimum 21 Years at the time of Loan Application & Maximum 65 Years at the time of maturity |
| Citizenship |
Indian Citizen with no criminal background |
| Employment Type and History |
Both Salaried and Self-Employed Individuals should be in Business / Profession for at least 3 Years |
| Credit Score |
Applicants must have a good credit score with a demonstration of good repayment history |
| Ownership of Shares & Securities |
The Shares & Securities to be pledged against the loan should be in the applicant's name |
- Arrange Emergency Funds - Meet your contingencies without having to sell off your investments. Arrange emergency funds for your personal or
- business needs. The loan cannot be used for speculative activities, Capital Market trading, or any anti-social purposes.
- Easy Repayment System - Your interest payments can be serviced in the form of credits to your account every month. The interest is charged only on the amount of loan used by you.
- Single Scrip Lending Service - Get up to 50% of the Value of Shares & Securities with any Depository Participant.
Loan Against Shares & Securities Interest Rates
Loan Against Shares & Securities Interest Rates varies from Bank to Bank and the kind of security/shares you pledge against the loan. They are calculated based on the value of the Shares/Securities, Credit Rating of the Individual, Business Viability, Tenure, etc. Here are the interest rates of some of the leading Banks and NBFCs.
| Banks | Interest Rates |
|---|---|
| HDFC Bank | At the discretion of the bank |
| Bajaj Finserv | 9.50% |
| Tata Capital | 10.50% |
| Anand Rathi | 12% |
| Axis Bank | 10.50% |
| ICICI Bank | Based on loan amount and tenure |
| State Bank of India | Based on the selected scheme |
| Apply |
Documents required for Loan Against Shares & Securities
Banks/NBFCs demand the documents for Loan Against Shares & Securities depending on the nature of the occupation of an applicant. The two categories of occupations are salaried and self-employed.
| Salaried Individuals | Self Employed |
|---|---|
| Duly signed application form with photograph(s) | Duly signed application form with photograph(s) |
| Identity proof, address proof and age proof | Identity proof, address proof and age proof |
| Salary slips of last 3 months | Financial Statements, including Balance Sheet, Profit and Loss Account and Cash Flow Statements |
| Bank statements for the last 6 months | Bank statements for the last 6 months |
| Latest Form-16 and Income Tax Return (ITR) details | Business Existence Proof i.e. Business Registration, GST Certificate, Trade License, Income Tax Return (ITR) details of last year, etc |
| Demat Account Statement | Demat Account Statement |
| PAN Card | PAN Card |
| Cancelled Cheque | Cancelled Cheque |
How to apply for Loan Against Shares & Securities at Loan Ki Dukaan?
Loan Ki Dukaan is dedicated to helping you fulfill your personal or business finance needs by aggregating loans in a quick and easy process. After you log in to the website, click on the 'Loan Against Shares & Securities' button, and follow the steps:
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Your Personal Details
Enter Your Details like Name, Business/Profession, Turnover / Yearly Sales, Mobile Number, securities pledged, etc. Fill in the additional details required and proceed.
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Connect and Evaluate
A list of 'Loan Against Shares & Securities' Offers from the best of Banks/NBFCs suited for your profile will be displayed after verification. Select the best offer as per your requirements.
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Apply for Loan
Apply for the loan online and get connected to a lender's representative for loan estimation, Shares / Security Value, and other requirements.
How is your Loan Against Shares & Securities repayment calculated?
A Loan Against Shares & Securities can be availed by an individual to meet any emergency contingency i.e. paying off a debt, medical expenses, funding a child's education, business working capital, etc. It isn't just about pledging your long-term investments like Equity Shares, Mutual Funds, etc but also includes additional costs to be borne by the borrower.
It is always better to understand your Loan against Shares & Securities repayment amounts before applying for the Loan – it helps make valuable decisions easily.
Loan Against Shares & Securities often comes with the facility to repay the loan amount as per the convenience of the borrower. Even if you decide to repay the entire amount within 2 days, the Banks/NBFCs don't charge a prepayment fee.
Usually, the Loan Against Shares & Securities Interest is serviced in the form of credits into the borrower's account. The interest is calculated on the amount of loan actually used by the borrower.
However, one can opt for EMI as a repayment option that is calculated after estimating the Net Value of the Share/Security pledged for the loan and the Eligible Loan Amount depending upon the prevalent Interest rates and creditworthiness of the borrower.
Loan Verification Process
Loan Verification for Loan Against Property/Mortgage Loans involves key steps:
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Applying for the Loan
Once you make a Loan Against Shares & Securities Online Application on Loan Ki Dukaan, your chosen lender receives your loan application.
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Document Pickup And Verification
Lender's representative contacts you for verification of the e-application, and arrange for pickup of documents required for the loan application. The lender's representative may contact for documents, and added details.
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E-Approval of Loan
Once the application and documents are collected, verified, and checked. The loan is approved, if and when the eligibility criteria are met.
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Loan Disbursal
Loan is disbursed upon Upon confirmation and signing of the loan agreement, an Overdraft Facility is extended to the borrower to their Current Account where they can use the Overdraft Limit to meet their contingencies.
How is your Loan Against Shares & Securities disbursed?
Loan Against Shares & Securities comes as an overdraft facility. Banks or NBFCs usually open a Current Account to the name of the borrower and extend the Overdraft facility for the borrower to use and meet their financial expenses.
FAQs
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Which Shares or Securities do lenders consider for a Loan Against Shares & Securities?
Most banks/NBFCs accept various Loan Against Shares & Securities as collateral to extend a loan. These include:
- Equity Shares
- Equity Mutual Funds
- Debt Mutual Funds / FMPs
- Life Insurance Policies
- Gold Deposit Certificates (GDC)
- National Savings Certificate (NSC)
- Kisan Vikas Patra (KVP)
- NABARD's Bhavishya Nirman Bonds
- Non-Convertible Debentures (NCD)
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What are the other charges of Loan Against Shares & Securities, besides interest rates?
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For what purposes can I use my Loan Against Shares & Securities?
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What happens if I miss an EMI payment?
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Why should I avail of a loan against Shares & Securities?
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How does the bank assess the loan amount of Loan Against Shares & Securities (LAS)?
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I have already pledged my Equity Share investments, can I pledge my mutual funds for another loan?
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Why should I apply for Loan Against Shares & Securities at loankidukaan.com?