Easy Loans Against Mutual Fund

A loan against security is sanctioned against a pledge of security such as mutual funds, insurance, etc.

The list of approved securities for LAS loans varied across lenders. Typically, a loan against securities is approved for the following:

  • 1. Mutual fund (Debt, Equity & Hybrid)
  • 2. National Savings Certificate (NSC)
  • 3. Demat shares
  • 4. Bonds

If you’ve pledged shares, you continue to enjoy ownership benefits – rights, bonuses, etc.

In turn, you get an overdraft facility with a limit based on the value of the securities pledged.

You are then free to choose how and when to use the LAS loan funds. The loan against security interest rate is determined only on the amount withdrawn for the period of the loan and is typically lower than that on a personal loan.

The biggest advantage of such a loan is that you can get access to funds quickly whenever you need them without giving up your shareholder rights to dividends and bonuses.

Thus, a loan against security is a good way to meet short-term financial needs.

Eligibility Criteria

Loan against securities eligibility criteria varies depending on the lender. LAS loans are available to both salaried employees and self-employed individuals. 

You must be within the age group of 18-65 years to avail of a loan.

LAS loans are also available to organizations holding eligible securities that have been in existence for at least 2 years.

We accept the following securities for a loan –

  • 1. Equity/Demat Shares
  • 2. Non-Convertible Debentures
  • 3. Mutual Fund Units
  • 4. Bonds and Government Schemes

Keep the following documents ready when applying for a loan against securities–

  • 1. Photo Identity Proof
  • 2. Income Proof
  • 3. Address Proof
  • 4. Salary Slips
  • 5. Bank Statements
  • 6. Passport Size Photo

Important Features to Know

A loan against securities is a secured loan since the bonds or shares are pledged as collateral.

Typically, the tenure is one year, which you can renew if need be. The loan amount will depend on the type of security you offer.

If you wish to prepay your LAS loan, you can do so without any prepayment charges. 

Do note that mutual funds exempt from capital gains tax (under Sections 54EA/EB) are not accepted as collateral.

How to Apply

We understand how much you value your investments. With our easy loans against securities, we help you meet both short and long-term financial goals while retaining the ownership of your securities.

We also offer you the flexibility to swap securities based on your assessment of the markets!

Our application process is fairly simple and quick – select your loan amount and tenure, submit your application, and get funds in your account. Visit us today to understand our loan against securities eligibility.

Share on social media