Loan Against Security

Loan against security amount is also available as an overdraft facility. Additional Finance: You have the option to avail additional finance on your loan against securities by pledging more shares, mutual fund units or securities.

What is Loan Against Security?

Banks and financial institutions keep coming with various ways to fulfil the monetary requirements of each and every individual as per their credit worthiness and paying capacity. One step in this direction was the introduction of gold loan. Another one has been Loan against Securities, popularly referred to as LAS. Under “Loan against Securities”, loan is advanced to a customer against pledge of securities or simply put loan against insurance policy, mutual funds, NSC and other securities.

Why Loan Against Securities
Maintain Living Standards

Secured Loan

Loan against securities is a secured loan as your bonds, shares, debentures or mutual funds are kept as collateral security when this loan is advanced to you.

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The tenure of loan against securities is generally one year. You may also get it renewed as per your requirement.

Rider Benefits

Rate of Interest

Generally interest rates at which loan against securities is advanced varies from 12% - 15% p.a but that may also vary from bank to bank.

Tax Benefits

Processing Fees

Banks and financial institutions usually charge approximately 2 % as processing fees.

Documents Required for Loan against Securities:
Generally, following documents are required by banks and financial institutions before they advance you loan against securities but the required documents may vary from bank to bank.

• Pan Card

• Identity Proof

• Photograph

• Address Proof

• Bank Statements (Latest 6 Months)

• Cancelled Cheque

• Demat Account Statement (Securities need to be in electronic form)

• Income Proof

Features of Loan Against Securities:


Loan against security is a Secured Loan. Debentures, shares, bonds or mutual funds are offered as collateral.


The tenure of the loan against security is one year, but it can be easily renewed.


The rate of interest ranges from 12 – 15%. The rate varies from bank to bank.


The processing fee is charged at 2% of the loan amount.


The loan amount depends on the security the borrower is offering.


The no charges for prepayment of the loan.


The borrower must be with the ages of 18 – 65 years to apply for a loan against security.


The loan has to be repaid within the fixed period. If the borrower fails to make the payment, the lender can file a case for recovery and the balance amount has to be repaid within 3 years from the date of sanction of the loan.

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