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Loan Against Securities (LAS)
Pledge Your Security Holdings and Receive Instant Credit

What Is Loan  Against Securities?

A Loan Against Securities (LAS) is a securities-based line of credit. LAS help individuals and institutions to avail of a loan against their security holdings such as shares, mutual funds, bonds, and debentures. LAS allow borrowers to pledge their securities rather than selling their holding merely. Loan against DEMAT shares, equity, and other securities offers borrowers a flexible, reliable, and cost-effective way to leverage liquidity strategically.

Things To Keep In Check While Availing A Loan Against Securities

The eligibility criteria may differ from bank to bank. As a borrower, you must check the standard eligibility criteria and ensure that you meet the stated requirements prior to applying for a loan against equity and other securities from your preferred bank. Generally, the borrower applying for a loan against equity shares must be 21 years of age.

How Does A Loan Against Equity  Shares And Other Securities Work?

A loan against shares and other securities enables individuals and institutions to avail of timely funds without selling their security holdings. The loan amount for which a borrower qualifies depends on the type and net value of the security being pledged. The first step of the LAS process is opening a current account in the borrower’s name. The interest rate for loan against security is determined based on the loan amount the borrower withdrew during the utilization tenure.

Benefits Of A  Loan Against Securities

A securities-based line of credit is the best way to preserve your investment portfolio in the long term.

Keep Your Investments

A Loan against equity shares and other securities allows you to stay invested. LAS will enable you to stick to your initial investment plan and allocate assets accordingly without changing the long-term strategy.

Key Features Of

Loan Against Shares

Credit Volume

Once the security against which the individuals or the institutions are availing the credit amount gets approved by the respective financial institution, the loan amount can go up to 78 per cent of the collateral value.


The interest rates may vary depending on the net value of the security submitted by the borrower as collateral. The rate of interest for a loan against shares and other securities ranges from 9 per cent to 12 per cent.


The typical tenure for a loan against DEMAT shares and other securities is one year. But the borrower can foreclose or extend the loan tenure at their convenience.


For a loan against securities, the applicant must be Indian resident individuals, HUFs (Hindu Undivided Families), NRIs (Non-resident Indians), Sole Proprietorship firms, private and partnership firms, and public companies.


Charges encompass initial processing fees, AMC, and stamp duty fees. The borrower could also incur additional expenses in case of an overdraft.

Why Opt For A  Loan Against Securities?

A loan against securities enables individuals and corporations to retain ownership of their security holdings. Because you are not selling your investments, you can consistently receive the benefits – dividends, returns, and bonuses.
  • Loan against equity shares and other securities helps you add instant liquidity – improving your holding’s potential manifold.
  • Loan against DEMAT shares and other securities offered you a flexible repayment structure, quick renewal, and straightforward penalty-free foreclosure.
  • On top of that, appreciation in the net value of the securities helps boost individuals’ and institutions’ fund-drawing power.
  • Loan against shares enables investors to grab emerging investment opportunities – buy shares without selling existing holdings.

Comprehensive List Of  LAS - Approved Securities

Securities that allow you to remain invested and keep your portfolio intact.

  • DEMAT share
  • Physical share
  • Non-convertible debentures (NCD)
  • Equity & Debt Mutual fund units (not exempt from capital gain tax)
  • National Savings Certificate (NSC)
  • Gold deposit certificates
  • Insurance policies from Private Insurance Companies
  • LIC policies
  • Kisan Vikas Patra (KVP)
  • Fixed Maturity Plans (FMP)
  •  UTI Bonds
  • NABARD Bonds
Get Access To Funds Without Liquidating Your Assets
Swyom Capital helps you unlock your potential with an easy loan against securities through simple documentation, effective communication, and structured assistance.


LAS is an abbreviation for the term “loan against securities”. LAS allows you to borrow funds (a particular loan amount) by pledging your securities as collateral for a loan. Equity shares or stocks or DEMAT shares, mutual funds units constituting both equity and debt, and life insurance policies are some prominent types of securities extensively employed as collateral for loans. A loan against equity shares and other securities is sanctioned only after the bank’s approval and verification. An investor who is invested in the equity market for the long term can leverage such LAS contracts to meet shortfall fund requirements.

The four main categories of securities are Equity securities, Debt securities, Derivative securities, and Hybrid securities. LAS-approved securities include DEMAT shares, LIC policies, Physical shares, UTI Bonds, Non-convertible debentures NCD, Mutual fund units (not exempt from capital gain tax), Kisan Vikas Patra (KVP), Gold deposit certificates, NABARD Bonds, and National Savings Certificate (NSC), and other securities. The types mentioned above of securities qualify as collateral for a loan against stock contracts.

Yes, for a loan against DEMAT shares and other securities accounts with no limits – a zero limit charge with taxes for the month is levied by your respective bank provider and the broker. Zero-limit loans against equity and other securities allow investors to avail of credit facilities without liquidating the holdings.

The procedure to get your security holdings released is fairly straightforward. Being a securities holder, you can release your holdings held in the loan against securities account both partially and wholly by filling up and submitting a release request form with the required certificate number, LAS account (loan against shares), and the FAS number.

The interest rate for a loan against shares and other securities is determined based on your CIBIL score. Generally, the interest rate for a loan against equity and other securities ranges between 12% and 15%. The interest rate figures may also vary based on your preferred bank and their policies around a loan against stock and other securities. Additionally, the amount for a loan is determined based on the type of asset or security the borrower is offering as collateral. It is critical to note that the processing fee for a loan against DEMAT shares and other securities is charged at the rate of 2% of the loan amount.

Absolutely yes, you are allowed to foreclose a loan against equity shares and other securities. You can do so by paying the predetermined interest and the absolute principal amount. During the foreclosure process, foreclosure charges will be applied by the respective financial institutions. The foreclosure procedure, the charges, and the option of foreclosing a loan against securities account may differ based on your preferred bank.

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