A loan against shares (LAS) is a secured loan that you can take out by pledging your shares as collateral. This means that the lender will hold your shares until you repay the loan, and if you default on the loan, they can sell your shares to recoup their losses.
Loan Against Shares can be a good option if you need to borrow money quickly and you don't want to sell your shares. However, it's important to be aware of the risks involved before you take out an LAS.
There are several reasons why someone might choose to take a loan against shares (LAS) instead of other borrowing options. Here are some reasons why you should consider taking a loan against shares:
A loan against shares (LAS) gives access to quick funds while retaining ownership of your stocks. Understanding how interest rates influence LAS is key to making informed decisions. Weighing the cost of borrowing, risk factors, and market trends against your individual needs is crucial before availing.
Here are the highlights of Loan Aginst Shares:
|Up to ₹20 lakhs
|Up to 50% market value of shares
|Starting from 9.50% p.a.
|6 months to 36 months
Here is a list of top banks offering LAS. Compare the interest rates and choose the best lender as per your financial requirements:
|10.50% to 12.75% p.a.
|10.50% to 12.75% p.a.
|9.50% to 12.00% p.a.
|Up to Rs.10 crore
|As per the bank's discretion
|Based on loan amount and tenure
|Rs.50,000 to Rs.20 lakh
|State Bank of India (SBI)
|Depends on the selected scheme
|Rs.20,000 to Rs.5 crore
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Loan against shares (LAS) offers a unique way to access quick funds while holding onto your investments. Here are the key eligibility criteria for availing a loan against shares:
Eligibility of Borrower:
Eligibility of Collateral:
LAS can be availed easily as shares serve as the underlying collateral. Only a few documents need to be submitted to avail this loan. Here are the key documents required for availing a loan against shares:
Do you need an instant loan?
Taking a loan against shares is a better alternative than selling your shares at a low price. As loans against shares are secured, they offer the following key features and benefits:
You can apply for a loan against shares online by pledging shares via their demat account, digitally signing the agreement, and get the loan amount credited to their account - all through a seamless digital journey.
Here’s how you can apply for a loan against shares in just a few steps online:
Step 1: Login to Net Banking and select the shares to pledge as collateral
Step 2: Digitally accept the loan agreement by entering the OTP sent to your registered mobile number
Step 3: Pledge the selected shares via depositories NSDL/CDSL
Step 4: On successful pledge of shares, the approved loan amount gets credited into the linked overdraft account
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You can also check other secured loan options from below:
LAS is a loan you can take out by pledging your shares as collateral. The lender holds your shares until you repay the loan, and if you default, they can sell your shares to recoup their losses.
The loan amount depends on the value of your shares, with typical maximums around 50% of the value. Lenders also have minimum value requirements for pledged shares.
Yes, you can continue to receive dividends and other income from your pledged shares while they are held as collateral.
Interest rates can vary depending on the lender, loan amount, and market conditions, usually starting from 9.50% p.a.
Tenure options can vary, but typical lengths range from a 6 months to 36 months. Some lenders offer overdraft facilities with flexible repayment.
Lenders have approved lists of eligible securities, typically including blue-chip stocks and certain mutual funds. Check with your chosen lender for specific details.
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