Q1. What is a Loan Against Securities in simple terms?

Ans: A Loan Against Securities (LAS) is a type of loan where you pledge your investments like shares, mutual funds, or bonds to borrow money—without selling them.

Q2. What is the maximum loan amount I can get against securities?

Ans: The loan amount depends on the type and value of securities you pledge. For shares, RBI allows up to 50% of their value, while for mutual funds and bonds it may be higher.

Q3. How fast can I get a loan against securities?

Ans: LAS is one of the quickest loans to avail. If your securities are approved and in demat form, funds can be disbursed within 24–48 hours in most cases.

Q4. What are the risks of taking a loan against securities?

Ans: The main risk is market volatility. If the value of your pledged securities falls, the lender may ask you to add more margin or repay part of the loan.

Q5. Do I lose my ownership if I get a loan against securities?

Ans: No, you won't lose your ownership. You're pledging the security and getting a loan, so it doesn't make you lose the ownership. In case you failed to pay the loan amount, the lender may sell it.

Q6. What documents are required for a loan against securities?

Ans: Typically, you’ll need KYC documents (ID, address proof), income proof (for some lenders), and details of the securities you want to pledge.

Q7. What type of securities can I pledge to get a loan against securities?

Ans: You can pledge bonds and debentures, equity and debt mutual funds, insurance policies, shares, ETFs, and other listed or approved securities.

Q8. Why is the Loan-to-Value (LTV) ratio calculated?

Ans: When you apply for a loan against securities, the lender calculates the Loan-to-Value ratio to ensure the loan remains secure even if market values drop. It determines how much loan you can get. It helps the lender manage risk during market fluctuations. It ensures compliance with RBI regulations. As per RBI guidelines, the maximum LTV ratio for shares is 50%.

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What is Loan Against Securities?

What is Loan Against Securities? Understand its meaning, process, and benefits. Get quick funds by pledging your shares, bonds, or mutual funds.

Anjali Singh

Assistant Manager

Published Date:Sep 2, 2025

Updated Date:Sep 2, 2025

Frequently Asked Questions

Anjali Singh

Assistant Manager

Hey there, I'm Anjali Singh. With over 6 years of experience in finance, I specialize in creating content on banking, loans, and financial planning. My goal is to simplify complex financial topics and help readers make informed decisions through my articles.

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