Loan Against Shares: Unlock the Value of Your Investments Without Selling
In today’s dynamic financial landscape, liquidity is crucial—but selling your long-term investments during a cash crunch might not always be the best option. That’s where Loan Against Shares (LAS) steps in. LAS allows investors to raise funds quickly by pledging their shares or other marketable securities without giving up ownership.
Whether you’re managing personal needs, funding a business, or covering an emergency, LAS offers a smart, flexible alternative to traditional loans.
What is a Loan Against Shares?
Loan Against Shares (LAS) is a type of secured loan where you pledge your listed shares, mutual funds, bonds, or other financial securities as collateral. Instead of liquidating your portfolio, you continue to enjoy potential capital appreciation and dividends while also getting the cash you need.
Key Features of LAS
- Quick Access to Funds: Get instant liquidity without selling your investments.
- Retain Ownership of Securities: You stay invested and benefit from any future market gains or dividends.
- Flexible Repayment Options: Repay through EMIs or bullet payments based on your cash flow.
- Competitive Interest Rates: As it’s a secured loan, interest rates are typically lower than personal loans.
- Overdraft Facility: Many lenders provide LAS as an overdraft limit, giving you flexibility to withdraw only what you need and pay interest accordingly.
Eligible Securities for LAS
You can avail LAS against a wide range of securities including:
- Listed equity shares
- Mutual funds (equity/debt)
- Government and corporate bonds
- ETFs
- Insurance policies with surrender value
Note: The loan amount depends on the type of security and its market value, with LTV (Loan to Value) typically ranging between 50–70%.
Benefits of LAS Over Traditional Loans
| Feature | Loan Against Shares | Personal Loan |
|---|---|---|
| Collateral Required | Yes (Shares/Securities) | No |
| Interest Rate | Lower | Higher |
| Processing Time | Fast | Moderate |
| Ownership of Assets | Retained | N/A |
| Prepayment Charges | Low or None | May Apply |
When Should You Consider LAS?
- Short-term cash requirements
- Business expansion or working capital
- Medical emergencies
- Educational expenses
- Buying property or investing in new opportunities
Risks to Consider
- Market Volatility: If your pledged securities fall in value, you may face a margin call.
- Loan Limitations: Lenders have approved lists of eligible stocks/funds.
- Repayment Default: Non-payment could lead to the liquidation of your pledged assets.
That’s why it’s essential to choose a trusted partner who understands both your financial needs and your portfolio.
Get LAS Easily with INVESTOEDGE
At INVESTOEDGE, we help investors unlock the power of their portfolios. Whether it’s listed shares, mutual funds, or bonds, we assist you in securing a Loan Against Shares at competitive rates, with fast processing and end-to-end guidance.
🔒 Safe | 🚀 Fast | ✅ Trusted
Looking to apply for a Loan Against Shares?
Visit our Contact Page to connect with our team today.
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