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Get Funds Without Selling Your Investments
Get instant funds against your Shares, Mutual Funds, and Bonds. Stay invested, keep earning, and access capital when you need it most.
25+ Years of Trust
🤝 275+ Lending Partners ⚡ Fast Digital Approval
📍 4,000+ Cities Served
💰 Rates Starting From 9.99% p.a.
What Is a Loan Against Securities?
A loan against securities (LAS) is a credit line where you pledge shares, mutual funds, or bonds as collateral instead of selling them. You get an instant eligibility check, you keep legal ownership of your investments, and you keep earning dividends and market gains while you repay only the interest. In effect, an LAS loan turns your existing holdings into a ready line of credit without disturbing your long-term portfolio.
This is different from a loan against shares alone, which is simply the equity-only version of the same structure. A loan against mutual funds works the same way but uses fund units, pledged via lien marking with CAMS or KFintech, instead of a demat holding. Investors who hold listed scrips often prefer a loan against stocks specifically because it lets them raise funds without touching their core equity positions, while those with debt or liquid schemes may lean toward a loan against mutual funds for a higher loan-to-value.
How it flows: 📈 Your Investments → 🔒 Pledge as Collateral → 💰 Get the Loan → 📊 Continue Owning & Earning
Don't sell your investments. Borrow against them with a loan against investments that keeps your wealth-creation plan intact.
Should You Take a Loan Against Securities or Sell Your Investments?
Selling your shares or mutual fund units to raise money means giving up future returns, dividends, and often triggering capital gains tax. A Loan Against Securities lets you access funds while your portfolio keeps working for you. For most investors, an LAS loan works out cheaper over time than exiting a position purely for liquidity.
What you retain with LAS:
- Continue owning your investments and remain the legal holder of your entire portfolio
- Continue receiving eligible dividends, interest, and bonuses, subject to lender and security terms
- Benefit from market appreciation on your holdings while the loan is active
- Avoid triggering capital gains tax events that come with selling
| Loan Against Securities ✅ | Selling Investments ❌ |
|---|---|
| Continue investing without a taxable event | Triggers capital gains tax |
| You retain ownership throughout | You lose ownership |
| Your portfolio keeps growing with the market | You miss future market growth |
| Instant liquidity, repayable on your terms | One-time cash, no re-entry cost |
| You keep receiving eligible dividends and bonuses, subject to lender terms | Dividends and bonuses stop |
Which Securities Can You Pledge for a Loan Against Securities?
You can pledge shares for a loan, pledge mutual fund units, or offer bonds as collateral, depending on which asset class fits your portfolio and your borrowing need.
| Security | Indicative LTV | Notes |
|---|---|---|
| Shares (listed stocks) | Up to 50% | Approved, exchange-listed scrips; higher limits typically for large-cap names |
| Equity Mutual Funds | Up to 50% | Growth, flexi-cap, index funds |
| Debt / Liquid Mutual Funds | 60%–85% | Higher margin against low-volatility funds |
| Bonds | Case by case | Depends on issuer and rating |
| Select Unlisted Stocks | Case by case | Evaluated individually |
LTV (Loan-to-Value) is the portion of your security's value you can borrow against. The 50% cap on shares and equity mutual funds reflects RBI's prescribed margin requirements for lending against these security types; rates and LTVs beyond that are indicative and subject to lender policy and your profile. Ruloans facilitates loan against securities using shares, mutual funds, and bonds.
Loan Against Securities: Key Features
| Feature | Details |
|---|---|
| Loan Amount | ₹25,000 to ₹2 Crore (digital) · ₹5 Lakh to ₹100 Crore+ (offline) |
| Age Eligibility | 18–75 years |
| Interest Rate | Starting from 9.99% to 10.50% p.a.* |
| Processing Fee | 1% to 2%* |
| Tenure | 36–60 months, with 12-month renewal |
| Repayment | Interest-only servicing; principal at closure |
| Prepayment/Foreclosure | Nil charges |
| Minimum CIBIL Score | 650+ |
*All the features are subject to change, e.g. loan amounts and LTVs also may change as communicated by RBI/lending partner.
Who Is Eligible for a Loan Against Securities?
👨 Individuals (age 18 to 75)
👥 Joint Account Holders
🏢 Proprietorships
👩💼 Partnerships
🏦 LLPs
🏭 Private Limited & Limited Companies
🏠 HUFs
🏛 Trusts
Ideal for salaried professionals, business owners, doctors, chartered accountants, HNIs, and active stock, mutual fund, or bond investors looking for a loan against investments rather than a liquidation event. Anyone who can pledge shares for a loan, or offer mutual fund units or bonds, can apply.
Why Do Investors Prefer a Loan Against Securities?
- ✔ Continue receiving eligible dividends and bonuses
- ✔ Portfolio stays fully invested and working
- ✔ No need to sell shares or mutual fund units
- ✔ Often more competitive than unsecured personal loans
- ✔ Interest-only servicing keeps monthly outflow manageable
- ✔ Liquidity without disrupting long-term wealth creation, whether through a loan against shares, a loan against stocks, or a loan against bonds
What Documents Are Required for a Loan Against Securities?
- KYC documents (PAN, Aadhaar/address proof)
- Demat/mutual fund folio statements
- Bank statements (for high-ticket cases)
- Entity documents (for non-individual applicants: LLP agreement, incorporation certificate, board resolution, etc.)
Note: since you pledge shares for a loan digitally through lien marking, physical share certificates are not required for demat holdings, whether it's a loan against stock or a mutual fund folio.
Disclaimer
Offline processing and high-ticket requests may require additional documents (e.g., CML copy, ITR, Net Worth Certificate) subject to verification requirements.
What Can You Use a Loan Against Securities For?
- 🏠 Home loan down payment / margin money
- 🌉 Bridge financing while awaiting sale proceeds or investment maturity
- 🛠 Home renovation and interiors, without liquidating assets
- 🏢 Business expansion and working capital
- 🎓 Higher education, domestic or overseas
- 🏥 Medical emergencies
- 💼 Debt consolidation using a loan against investments instead of redeeming your holdings
Many borrowers choose to pledge shares for a loan specifically to fund a large, time-bound expense without disturbing a long-term SIP or equity plan. A loan against investments works well here because the underlying portfolio continues to grow even as the loan is repaid.
How Do You Apply for a Loan Against Securities Online?
1 Apply online via Ruloans and share your portfolio details
2 Get an instant eligibility check across lender partners
3 Complete KYC (PAN, Aadhaar, photograph, cancelled cheque, linked mobile/email)
4 Submit your holding statement with ISIN numbers for asset verification
5 Pledge securities digitally (lien marking with CAMS/KFintech for mutual funds). This is how you pledge shares for a loan without moving them out of your own demat account
6 Get the loan approved and funds disbursed to your account
Start Your LAS Application Today →
Why Apply Through Ruloans?
As a financial distribution company with 25+ years in the industry and 275+ bank and NBFC partners, we don't lend our own money, we help you find the right lender for your profile.
- Access to multiple lenders through one application
- Expert guidance on which security type maximizes your loan eligibility, whether that's a loan against stocks, a loan against bonds, or a loan against mutual funds
- A dedicated relationship manager through the entire process
- Fully digital journey with transparent charges
- Support network spanning 4,000+ cities
Our Lending Ecosystem
Bajaj Finance, Aditya Birla Finance, Tata Capital, Piramal Finance, SMFG India Credit, and Jio Credit, with additional lender onboarding in progress.
Ready to Unlock the Value of Your Investments?
Get funds without selling your investment. Compare offers from 275+ lending partners in one place and get an instant loan against securities matched to your portfolio. Apply for your loan against securities today and keep your investments working for you.
Loan Against Securities FAQs
Digitally, you can access ₹25,000 to ₹2 Crore. For larger requirements, the offline process supports up to ₹100 Crore+. The exact amount depends on the type of security pledged and its loan-to-value ratio.
Yes. You remain the legal owner of your pledged securities, so eligible dividends, bonuses, and other corporate benefits continue to come to you, subject to the specific lender and security terms.
It can be, since it is secured against your existing investments and often carries a more competitive interest rate than an unsecured personal loan. The right choice depends on your loan amount, portfolio composition, and repayment timeline, so it is worth comparing both.
If the value of pledged equity falls significantly, the lender may issue a margin call, asking you to pledge additional securities or repay part of the loan to restore the required loan-to-value ratio. This is why equity-heavy portfolios typically get a lower LTV than debt or liquid funds, and it's a key risk to weigh before taking a loan against stock.
A margin call happens when the market value of your pledged securities drops enough to breach the lender's required LTV threshold. Your options are to pledge additional securities or repay part of the loan within the lender's notice window. Monitoring your portfolio value regularly helps you avoid being caught off guard.
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