Loan Against Shares and Mutual Fund Units

Loan Against Shares & Mutual Fund Units: Unlock Liquidity Without Selling

When you need funds urgently but don’t want to sell your investments, a Loan Against Securities (LAS) is the smart way forward. Specifically, Loan Against Shares and Loan Against Mutual Fund Units let you borrow money by pledging your existing investments as collateral, helping you meet financial needs without disrupting your long-term wealth-building strategy.

What is a Loan Against Shares or Mutual Funds?

It’s a secured overdraft facility or term loan where you pledge your dematerialized shares or mutual fund units to a lender. In return, you get access to a loan amount based on the current market value and eligibility of the pledged securities.

Unlike liquidating your investments, you retain ownership, continue to earn dividends or capital appreciation, and repay the loan at your pace.

Key Benefits:

• Instant liquidity without selling assets
• Continue to earn market returns on your investments
• Lower interest rates than personal loans
• Flexible repayment with overdraft or EMI options
• Quick processing with minimal documentation

Eligible Securities:

• Listed equity shares held in demat form
• Debt mutual funds (like Liquid Funds, Short-Term Funds)
• Equity mutual funds (as per lender’s approved list)
• Hybrid/balanced funds (selective basis)