In today’s fast-paced financial world, emergencies can arise without warning. Instead of liquidating your valuable investments, there’s a smarter option: an instant loan against securities. This financing solution allows you to access instant funds while keeping your investments intact. Let’s explore what it is, how it works, and why it might be the ideal choice for you.

What Is Loan Against Securities?

A loan against securities (LAS) is a type of secured loan where you pledge your financial assets like shares, mutual funds, bonds, or insurance policies as collateral. In return, the lender provides you with a loan amount based on the market value of these securities.

Essentially, it lets you unlock the liquidity of your investments without having to sell them. As the value of your pledged assets remains intact, you continue to benefit from any appreciation or dividends during the loan period.

How Does a Loan Against Securities Work?

The process is simple and quick:

1. Pledge Your Securities: You provide a list of approved securities to the lender.

2. Valuation and Eligibility: The lender determines the loan amount—usually up to 50–80% of the current market value.

3. Loan Disbursement: Once approved, funds are transferred instantly to your account.

4. Repayment: You can repay the principal and interest as per the agreed schedule, or even prepay without penalties in many cases.

This makes it ideal for investors seeking an instant loan against securities to meet urgent financial needs such as medical expenses, business requirements, or educational costs.

Loan Against Securities Interest Rates

One of the biggest advantages of LAS is its competitive interest rates compared to personal loans or credit cards. The loan against securities interest rates typically range between 8% and 12% per annum, depending on factors like:

• Type and quality of pledged security

• Market volatility

• Loan tenure and amount

• Borrower’s credit profile

Since the loan is backed by valuable assets, lenders consider it low-risk, allowing them to offer lower rates. Some banks and NBFCs even provide instant digital approvals and flexible repayment options.

Benefits of Taking a Loan Against Securities

• No Need to Sell Investments: Continue enjoying dividends, bonuses, or capital gains.

• Instant Liquidity: Get funds within hours without lengthy documentation.

• Flexible Repayment: Choose short or long tenures as per your comfort.

• Lower Interest Rates: Much cheaper than unsecured borrowing.

• Retain Ownership: You stay the legal owner of your pledged securities.

Conclusion

A loan against securities is a powerful financial tool that offers instant liquidity without disturbing your investment portfolio. With attractive interest rates and fast processing, it serves as an ideal solution for both individuals and businesses. Whether you need an instant loan against securities for a short-term need or long-term flexibility, this option ensures your money keeps working for you even while you borrow against it.