✅ Need More Money? Try Loan Against Securities

As the name suggests, a Loan against Securities (LAS) is a loan offered against marketable securities. This includes your stocks, mutual funds, bonds and insurance policies. As a borrower, you can pledge your financial investments to borrow funds from a bank or Non-Banking Financial Company (NBFC). This is a secured loan so you can meet all your financial needs without having to sell your investments.

How a Loan against Security can help you meet your needs

In case you want to meet a certain financial need, the conventional method is to sell your securities to meet your need. But what if you don’t want to sell your securities? For example, imagine a contingency has sprung up and you need liquid funds quickly. However, you have invested your money in a particular stock and you expect good returns a few months down the line. You don’t want to sell your securities to lose your returns. At this point, you can simply take a secured loan against your securities. This way, you not only get to fulfil your interim financial need, but you also get to keep your securities.

Benefits of Loan against Securities

When you take a Loan against Securities, you get to enjoy its many benefits as a borrower. These benefits include:

High loan value

You can avail a high-value loan at short notice to meet varied financial needs. Bajaj Finserv, for example, offers LAS up to Rs. 10 crores.

Easy documentation

As an individual borrower, you need to provide basic documents to process your LAS. These documents include your PAN card, Aadhaar card and one cancelled cheque or your bank statement.

A wide range of approved securities

You can pledge a wide range of securities as collateral to avail LAS. Usually, NBFCs accepts a comprehensive list of shares, mutual funds, IPOs, bonds and Employee Stock Ownership Plans (ESOPs).

Zero pre-payment charges

The pre-payment option gives you greater freedom to service your loan at your own convenience. This is why Bajaj Finserv allows you to prepay your loan at zero charges. In addition, the company does not levy any foreclosure charges.


When you are in need of money and you own different securities, you now know what to do. Take loan against securities from a registered bank or NBFC to fulfil your financial requirements. However, make sure to compare the Loan against Securities interest rate offered by different lenders to get the best deal. You should also make sure that you meet the eligibility criteria for LAS before submitting your loan application.



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