About Loan Against Securities
A Loan Against Securities (LAS) is the ultimate financial hack for smart investors. When an urgent cash requirement arises, the instinctive reaction is often to sell off Mutual Funds or Shares. However, doing so disrupts your compounding journey, incurs capital gains taxes, and forces you to exit the market, potentially missing out on future rallies. LAS solves this dilemma perfectly.
Instead of selling, you simply 'lien-mark' or pledge your approved securities in favor of the lender. In return, you are instantly granted an Overdraft (OD) limit in your bank account, typically up to 50% of the value for Equity funds and up to 80-85% for Debt funds. You can withdraw cash from this limit instantly and use it for absolutely any purpose.
The best part? You retain full ownership of your portfolio. You continue to receive all dividends, bonuses, and market appreciation. The entire setup process is 100% digital, executed via RTAs like CAMS or KFintech, and takes less than 15 minutes. You only pay interest on the exact amount you withdraw from the OD limit, making it a highly cost-effective emergency fund.
Key Benefits
- Avoid selling your investments; let your wealth continue to compound in the market.
- 100% digital, paperless process with limits approved in under 15 minutes.
- Operates as an Overdraft: Pay interest only on what you use, for the days you use it.
- No fixed EMI. Pay the monthly interest and clear the principal whenever you have cash.
- Avoid triggering Short-Term or Long-Term Capital Gains Tax (LTCG) from premature selling.
- Accepts a wide range of securities including Mutual Funds, Demat Shares, Bonds, and FDs.
Why Choose Our Loan Against Securities?
We partner with top banks to bring you unbeatable terms, transparency, and zero hidden charges.
Keep Earning Returns
Your pledged Mutual Funds continue to earn market returns and dividends. You just lien-mark them.
15-Minute Digital Setup
Fetch your portfolio via OTP, select the funds to pledge, and your OD account is created digitally in minutes.
No Fixed EMI
This is an overdraft facility. Pay only the monthly interest. Repay the principal whenever you have surplus cash.
Who Can Apply?
- 1Portfolio Value: Minimum portfolio value of ₹2 Lakhs in approved Mutual Funds or Demat Shares.
- 2CIBIL: Basic credit check is performed, though approval is primarily asset-backed.
Document Checklist
Digital Execution
- PAN and Aadhaar for e-KYC
- Active NetBanking for E-Mandate setup
- Holding statements from NSDL/CDSL or CAMS/Kfintech