Loan Against Securities

There are various ways to fulfill the monetary requirements of each and every individual as per their credit worthiness and paying capacity. One step in this direction is the introduction of Loan against Securities, popularly referred to as LAS.

Under “Loan against Securities”, loan is advanced to a customer against pledge of securities or simply put loan against insurance policy, mutual funds, NSC and other securities. The list of approved securities against which LAS can be advanced varies from bank to bank, but primarily the following are considered to be approved securities against which LAS could be given.

Non-Convertible Debentures
Mutual Fund Units
NABARD Bonds
Demat Shares
UTI Bonds
NSC/KVP (Accepted only in Demat form)
Insurance Policies

LAS helps you to get loan against the securities that you have, for the time being, merely pledged without selling them off in haste. An overdraft facility is advanced to you by bank or financial institution when you pledge your securities. The value of the overdraft limit that is advanced to you is determined on the basis of the securities that are pledged by you.

For smooth transactions, a current account is opened in your name and it is at your discretion how and when to withdraw and use the money. The rate of interest is calculated only on the amount withdrawn by you and only for the period of utilization.

The advantageous part of pledging your securities is one that you are able to get steady cash easily at the time you need it most and secondly you would not be devoid of the benefits as a shareholder. This means that you can enjoy your rights of receiving dividends and bonuses along with gaining from the price movements in the shares for which you have availed the loan from the bank.

In order to meet your short-term financial needs, Loan against Securities offers a good choice as you do not have to sell your stocks in haste. Moreover, the interest rate at which you get LAS is lesser as compared to a personal loan.

If you have any query, please do contact us

At Aahana Investment, we adopt a structured and disciplined approach and provide you secure and safe mutual fund investment platform.

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Risk Factors – Investments in Mutual Funds are subject to Market Risks. Read all scheme related documents carefully before investing. Mutual Fund Schemes do not assure or guarantee any returns. Past performances of any Mutual Fund Scheme may or may not be sustained in future. There is no guarantee that the investment objective of any suggested scheme shall be achieved. All existing and prospective investors are advised to check and evaluate the Exit loads and other cost structure (TER) applicable at the time of making the investment before finalizing on any investment decision for Mutual Funds schemes. We deal in Regular Plans only for Mutual Fund Schemes and earn a Trailing Commission on client investments. Disclosure For Commission earnings is made to clients at the time of investments. Option of Direct Plan for every Mutual Fund Scheme is available to investors offering advantage of lower expense ratio. We are not entitled to earn any commission on Direct plans. Hence we do not deal in Direct Plans.