Loan Against Shares Interest Rates in 2025

Owning shares isn’t just about long-term wealth. In 2025, your portfolio can also help you meet urgent financial needs, without selling a single stock. This is where a loan against shares comes in. Whether it's for a business requirement, medical emergency, or simply to tide you over a shortfall, this type of loan gives you instant liquidity while keeping your investments intact. 

But the key factor is understanding the loan against shares interest rate and how it works in India right now. 

Loan Against Shares

A loan against shares helps you access funds by using your equity investments as security for a loan. The banks and NBFCs decide your loan limit. It is based on the current market value of the shares you use to secure the loan. This limit is often up to 50 to 70% of the value of the shares. It depends on the lender and the risk profile of the stocks.

Since you don’t have to sell your investments, a LAS gives you a smart way to manage your cash flow while still keeping ownership of your portfolio.

Why a Loan Against Shares in 2025?

In 2025, with markets swinging up and down, investors have become more cautious about selling their holdings. In such a climate, a loan against shares in India becomes a preferred choice, offering:

• Quick access to funds
• No need to liquidate long-term investments
• Interest charged only on utilised amount (for overdraft facility)
• Lower interest compared to unsecured personal loans

Loan Against Shares Interest Rate in 2025

Here’s a snapshot of the loan against shares interest rate offered by top banks and NBFCs this year:

Factors That Influence Your Loan Against Shares Interest Rate

Let’s look at what determines the loan against shares interest rate offered to you:

1. Nature of Stocks Pledged

Lenders maintain their own list of approved securities. Blue-chip stocks or those with higher market capitalisation attract better loan terms compared to high-volatility or small-cap stocks.

2. Credit Score

Even though your shares are collateral, your creditworthiness still plays a role. A higher CIBIL score can get you lower interest rates.

3. Loan Tenure

Shorter-term loans generally carry lower interest rates. LAS is typically structured for up to 12 to 24 months, with options to renew.

4. Type of Loan

You may choose between:

• Overdraft (OD) facility - pay interest only on the amount used
• Term Loan - fixed EMIs, better suited for planned expenses

OD loans may come with slightly higher rates due to flexibility but are interest-efficient for short usage.

5. Market Conditions

With interest rates seeing some upward pressure this year, comparing lenders becomes all the more important.

Benefits of Taking Loan Against Shares in India

Loan against shares in India is gaining more popularity with digital lending platforms simplifying the process. Here’s why:

• Digital Application Process: Apply online and pledge shares through a depository interface.
• Low Processing Time: You can get your approval within 24 to 48 hours.
• No Prepayment Charges: Most lenders allow you to repay early with minimal fees.
• Continue to Earn Dividends: You remain the shareholder, and any benefits like dividends or bonuses are yours.

How to Get the Best Loan Against Shares Interest Rate?

To reduce your borrowing cost, here are a few practical tips:

• Pledge high-quality, approved stocks with stable market performance.
• Maintain a high credit score of 750+ and above.
• Compare at least a few lenders before deciding.
• Choose an overdraft facility if your requirement is uncertain or for short-term use.
• Avoid borrowing near market highs to prevent margin calls if stock values drop.

Who Should Consider LAS?

This product is ideal for:

• Salaried or self-employed individuals holding substantial shares
• Business owners need short-term working capital
• Investors are avoiding capital gains tax due to premature selling
• Individuals wanting to maintain investment positions in a rising market

Conclusion

A loan against shares in India is one of the most efficient and flexible credit options, especially when you know how to get the best loan against shares interest rate. It allows access to funds without giving up your investments. Whether you need quick capital or are just looking for liquidity in the short term, knowing the right loan against shares interest rate can help you make the best decision.

My Mudra partners with top banks and NBFCs to make this process faster, simpler and completely digital. So, if you're holding onto your shares but need funds, letting your portfolio work for you can be a smart move.

Also Read:
- Is Taking a Loan Against Shares Really Worth It?
- Top Benefits of Taking a Loan Against Stocks