Loan Against Securities: Get Funds Without Selling Your Investments.
Loan Against Securities lets you borrow money by pledging your mutual funds or shares as collateral - without selling them. You get funds, keep your investments, and pay interest only on what you use.
Types of Loan Against Securities
Loan Against Mutual Fund
Pledge eligible Equity or Debt Mutual Funds and access a credit facility without selling your units.
Loan Against SharesUpcoming
Pledge your demat shareholding and borrow against it. Ideal if you hold a direct stock portfolio.
What Is Loan Against Securities?
Loan Against Securities (LAS) is a loan you get by pledging your mutual funds or shares as collateral, without selling them. It works as an overdraft, so you pay interest only on the amount you actually use - not on your full sanctioned limit.
Here's how it works: your mutual fund units or shareholdings are marked with a lien in the lender's favour - through the registrar (RTA/CAMS-KFintech) for mutual funds, or your depository (CDSL/NSDL) for shares. You continue to own the securities; you just can't sell them while the lien is active. Any dividends, interest, or bonus units you're entitled to still come to you.
Think of it as unlocking the value already sitting in your portfolio, without disturbing your long-term plan. If you've been building wealth through SIPs or a stock portfolio, selling to meet a short-term need can set that plan back. A Loan Against Securities lets you access funds while your investments keep growing.
Loan Against Mutual Fund
If most of your money is in SIPs or mutual fund folios, this is likely your fastest route to funds.
How much you could avail?
- Equity Mutual Funds
- Up to 45%*
- Debt Mutual Funds
- Up to 75%*
*Debt funds usually get a higher LTV than equity funds because they're less volatile. Figures shown are illustrative and subject to lender policy.
Loan Against Shares
Loan Against Shares is a loan in which you pledge your eligible demat-held equity shares as collateral and borrow against their value.
You retain ownership of the shares, subject to the security interest, while repaying the amount used with applicable interest.
In simple terms, Loan Against Shares is a secured borrowing limit against an eligible share portfolio. The lender evaluates the approved securities, applies the relevant loan-to-value (LTV) ratio, and sanctions a limit.
LAMF vs LAS - A Quick Comparison
Already explored the options above? Here’s a quick comparison to help you choose based on the financial assets you hold.
Loan Against Mutual Fund (LAMF)
Pledge eligible equity or debt mutual fund units to access funds while retaining your investments, subject to applicable terms. The loan-to-value (LTV) ratio depends on the fund type and lending policy.
Loan Against Shares (LAS)
Pledge eligible shares held in your demat account to access funds without selling them. The LTV ratio is subject to applicable regulatory limits and lender criteria.
Loan Against Securities Calculator
Use our LAMF and LAS calculators to know how much you can borrow against your mutual fund units and shareholdings without disrupting your investments.
Want to Borrow
| Interest Only | |
|---|---|
| Each Month | ₹6,563 |
| Total Interest | ₹2,36,250 |
| Total Repaid | ₹9,86,250 |
Eligibility & Documents Required
Here's everything you need to check your eligibility and get your documents ready - in one place.
For Individuals
Age 18–70 years, resident Indian (NRI terms may vary)
KYC: PAN, Aadhaar/address proof, signature proof
Demat account, mutual fund folio details
For Companies, Partnerships and Sole Proprietors
Entity registered in India
KYC: PAN, incorporation documents, KYC of authorised signatories
IT returns and audited financial statements for the last two years (if pledging mutual funds/ETFs)
*Requirements can vary slightly between LAMF and LAS - check the specific checklist on each product's application page.
How to Apply
- Step 1
Complete Your KYC
Verify your identity and submit the required details.
- Step 2
Choose Your Asset
Select the mutual funds or shares you want to use as security.
- Step 3
Complete the Formalities
Finish the required pledge or policy assignment process.
- Step 4
Get Your Loan
Once pledge is approved, receive the funds as per the applicable loan terms.
Benefits of Loan Against Securities
No Liquidation Needed
Your investments stay exactly where they are.
Interest on What You Use
Not on your entire sanctioned limit.
No Pre-Payment Charges*
Repay early without penalty on the principal.
Quick Digital Disbursal
Pledge and access funds with Quick Approval.
Continued Dividends & Returns
You keep earning on your pledged securities.
Offline Option Available
Prefer an assisted process? That works too.
*Pledge creation/closure charges levied by the depository or RTA may apply separately - confirm the current fee schedule before applying.
What Should You Know About Risks and Margin Calls?
A Loan Against Securities is a market-linked facility, and it's worth understanding the flip side before you apply.
What Should You Know About Risks and Margin Calls?
Market Value Can Move
Since your loan is tied to the current value of your mutual funds or shares, a fall in that value reduces what you're eligible to borrow and can also affect an already-sanctioned limit.
What's a Margin Call?
A margin call is a notification from the lender when the value of your pledged securities falls and your loan-to-value (LTV) ratio exceeds the permitted limit.
How to Handle a Margin Call
You typically handle a margin call either by pledging more eligible securities or repaying a portion of your utilised amount. A simple way to reduce this risk is not to withdraw right up to your full eligible limit. Leaving some buffer gives you room to absorb normal market movement without triggering a margin call.
Market Value Can Move
Since your loan is tied to the current value of your mutual funds or shares, a fall in that value reduces what you're eligible to borrow and can also affect an already-sanctioned limit.
What's a Margin Call?
A margin call is a notification from the lender when the value of your pledged securities falls and your loan-to-value (LTV) ratio exceeds the permitted limit.
How to Handle a Margin Call
You typically handle a margin call either by pledging more eligible securities or repaying a portion of your utilised amount. A simple way to reduce this risk is not to withdraw right up to your full eligible limit. Leaving some buffer gives you room to absorb normal market movement without triggering a margin call.
Got Questions?
Both are types of Loan Against Securities. In LAMF, your mutual fund units are pledged with the registrar (RTA). In LAS, your demat shares are pledged through your depository (CDSL/NSDL). LAMF usually offers a higher LTV on debt funds, while LAS suits investors with direct stock portfolios. You can choose either - or both - based on what you hold.
It depends on the Loan-to-Value (LTV) ratio applied to the current market value of what you pledge. Equity investments typically get a lower LTV than debt mutual funds, which are less volatile. Exact percentages vary by security type and are revised periodically - check current limits before applying.
No. Pledging only creates a lien in the lender's favour - ownership stays with you. You continue to receive dividends, interest, and bonus units during the loan tenure, as long as your securities stay within the required margin/LTV limit.
Individuals need to provide proof of identity, address and signature, along with their demat or mutual fund folio details. Document requirements may vary slightly between Loan Against Mutual Fund (LAMF) and Loan Against Shares (LAS). Please refer to the respective product page for the specific checklist.
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