Our Services -> Loans -> Loan Against Security
Access liquidity against eligible investments without necessarily selling the securities you have built your portfolio around.
Access liquidity against eligible investments without necessarily selling the securities you have built your portfolio around.
Loan Against Securities (LAS) allows eligible investments to be pledged as collateral to access financing without selling those investments.
Loan Against Securities (LAS) is a financing facility that enables customers to avail a loan against eligible securities held by them.
Instead of liquidating your investments to meet a financial requirement, eligible securities can be pledged as collateral with the lending institution.
The financing may be provided through an overdraft facility, with the available limit generally determined based on the value and eligibility of the securities pledged.
Interest is generally calculated on the amount actually utilised and for the period for which the funds are used, subject to the applicable terms of the lending institution.
The core advantage is simple: you may be able to access liquidity without having to sell eligible investments that you intend to continue holding.
The process is designed around pledging eligible securities and drawing funds when required.
Eligible shares, mutual funds, bonds, insurance policies and other approved securities can be pledged as collateral, subject to the lender's approved list and applicable conditions.
The available overdraft or loan limit is determined based on the value, type and eligibility of the securities pledged.
Once the facility is established, funds can be utilised as required, subject to the sanctioned limit and applicable terms.
Under an overdraft structure, interest is generally calculated on the amount actually utilised and for the period of utilisation, subject to the lender's terms.
The securities accepted as collateral depend on the lending institution and its approved list. Eligible securities may include:
Shares
Equity Mutual Funds
Debt Mutual Funds
Kisan Vikas Patra (KVP)
Fixed Maturity Plans (FMP)
LIC Insurance Policies
Select Private Insurance Policies
Non-Convertible Debentures (NCDs)
Tax-Free Bonds
Select Government & Institutional Bonds
LAS can offer a flexible way to meet liquidity requirements while keeping eligible investments pledged rather than liquidated.
With an overdraft structure, interest is generally charged on the amount actually utilised rather than the entire sanctioned limit, subject to applicable terms.
Instead of immediately selling eligible investments to raise funds, you can explore the possibility of pledging them as collateral.
Depending on the lender, a variety of eligible securities may be accepted, from mutual funds and shares to certain bonds and insurance policies.
An overdraft-based structure can provide convenient access to funds as and when required, subject to the available limit.
Certain LAS facilities may offer renewal options, subject to the lender's terms and continued eligibility.
Certain LAS products may offer the flexibility of repayment without a prepayment penalty, subject to the specific product terms.
When you have a well-built investment portfolio, selling investments may not always be the only way to create liquidity.
Your investment portfolio may represent years of disciplined wealth creation. When a short-term or medium-term financial requirement arises, liquidating investments can mean giving up your position in those assets.
A Loan Against Securities provides an alternative route: where eligible, your securities can be pledged as collateral to access financing while continuing to hold them.
At Alphaa Capital, we help you understand whether this type of financing may be appropriate for your requirement and assist you in exploring the available lending solution.
Pledging investments for financing comes with its own risks and obligations and should be evaluated carefully.
Since the value of pledged market-linked securities can fluctuate, changes in market value may affect the available borrowing limit or collateral requirements.
Evaluate the applicable interest rate and understand how interest is calculated on the facility before utilising the funds.
The lender may require you to maintain a prescribed collateral value. Market movements can therefore affect the facility.
Not every security is necessarily accepted. The approved list, loan-to-value ratio and applicable conditions vary by lending institution.
Speak with our team to understand how a Loan Against Securities may help you meet your financial requirement while keeping your eligible investments pledged rather than liquidated.
Talk to an AdvisorLoan Against Securities is subject to the policies, eligibility criteria, approved security list, valuation requirements, interest rates, loan-to-value limits and other terms of the lending institution. Market-linked securities are subject to market risks and fluctuations in value. Approval is subject to the lender's assessment and applicable documentation.
Every financial journey begins with a single step. Let our experienced advisors help you identify the right investment opportunities and build a strategy tailored to your goals.chat
We provide financial planning, investment management, wealth growth strategies, and retirement planning solutions.
Yes. We prioritize secure investment platforms and transparent financial management practices.
Simply contact our team, choose a suitable plan, and we’ll guide you step by step.
It depends on the package chosen. We offer flexible options to suit different budgets.
Yes, you have full control and can withdraw based on the terms of your investment.
Absolutely. We design strategies tailored to your financial goals and risk tolerance.
Whether you’re planning for long-term wealth, securing your family’s future, or growing your business, our experts are here to help you make informed financial decisions with confidence.
