Already on ArticleSlash?

Forgot your password? Sign Up

Need More Money? Try Loan Against Securities

Aman Khanna

Visitors: 94

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.


Article Source:

Rate this Article: 
Attention Holders of Restricted Securities!
Rated 4 / 5
based on 5 votes

Related Articles:

Loan Officer Training - This Is The Perfect Time For Loan Officers To Make Big ..

by: Andrew Poletto (December 20, 2007) 
(Business/Sales Training)

Quick Bridging Loan - Fast Loan For Needs of Margin Money in Any Transaction

by: Richard Pasic (August 03, 2007) 

Private Real Estate Money - The 5 Advantages of Private Money Over Hard Money ..

by: Mike Lautensack (August 18, 2008) 
(Finance/Mortgage Refinance)

The Distressed Securities Strategy

by: John Bardacino (April 16, 2008) 

What is the Securities and Exchange Commission?

by: Sarah Freeland (January 10, 2007) 

Life Insurance Policy Loan - Learn How to Make Money While Borrowing Money

by: Bernard B. (November 11, 2008) 
(Insurance/Life Annuities)

Why Treasury Securities Are A Good Investment

by: Allen Bohart (December 22, 2007) 

Auction Rate Securities Basics

by: Joseph Devine (June 16, 2008) 

Preventing Securities Fraud - How to Protect Yourself

by: Sarah Freeland (January 10, 2007) 

Attention Holders of Restricted Securities!

by: Henry Wilkins (July 10, 2008)