Loan Against Securities (LAS)
Learn what Loan Against Securities (LAS) is, how it works, eligibility, benefits, and the complete application process. Understand collateral in LAS and see how MyFinFlow offers a quick, secure, and seamless LAS experience.
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Loan Against Securities (LAS): Meaning, Process, Benefits & How to Apply
Introduction
When you need quick funds but don’t want to disturb your investments, a Loan Against Securities (LAS) becomes the ideal solution. With LAS, you can borrow money by pledging your financial assets—while still enjoying market returns. It’s a smart, low-interest borrowing option for business owners, salaried individuals, and investors.
What Is LAS (Loan Against Securities)?
Loan Against Securities (LAS) is a secured loan where you pledge your financial investments—such as shares, mutual funds, bonds, ETFs, or government securities—as collateral to get a loan.
Instead of selling your investments during emergencies, LAS allows you to borrow money while your portfolio continues to grow.
In simple words:
Your investments stay invested, but the lender keeps them as security until you repay the loan.
How LAS Works
LAS works on the concept of Loan-to-Value (LTV).
Lenders offer you a percentage of the value of your securities. For example:
If your shares are worth ₹10,00,000
And the lender offers a 50% LTV
You can get a loan of ₹5,00,000
Your securities remain in your demat or mutual fund account, but a lien is created in favor of the lender. Once you repay the loan, the lien is removed.
What Is Collateral in LAS?
Collateral is an asset pledged to the lender to secure a loan.
If you fail to repay, the lender can liquidate the collateral to recover the money.
In LAS, collateral can include:
Equity shares
Mutual fund units
Bonds
ETFs
Government securities
Because the loan is secured, lenders offer:
Lower interest rates
Faster approvals
Higher loan amounts
Flexible repayment options
Benefits of Loan Against Securities (LAS)
1. You Don’t Need to Sell Your Investments
Your securities stay invested, helping you continue to earn returns.
2. Lower Interest Rates
LAS interest rates are usually lower than personal loan rates.
3. Quick Processing
Since collateral is strong, approvals are faster and hassle-free.
4. Flexible End Use
You can use the loan for business, education, emergency, expansion, travel, or personal needs.
5. High Loan Amounts
Depending on your portfolio, you can access larger funds compared to unsecured loans.
Eligibility Criteria for LAS
While criteria may vary slightly by lender, the general requirements include:
Indian resident
Valid PAN and KYC documents
Marketable securities in your name
Clean credit profile
Minimum portfolio value (varies by lender)
Documents Required for LAS
Typically, the documents needed are:
PAN Card
Aadhaar Card
Bank statements
Statement of securities (Demat or MF)
Passport-size photo
Signed application or agreement
How to Apply for LAS – Step-by-Step Guide
Step 1: Check Eligible Securities
Confirm which of your assets (shares, mutual funds, bonds) qualify for LAS.
Step 2: Fill Out the Application Form
Provide personal details, portfolio details, and KYC information.
Step 3: Pledge/Mark Lien on Securities
Your securities are pledged digitally or manually through your depository.
Step 4: Loan Evaluation & Approval
The lender checks the value of securities and determines your eligible loan limit.
Step 5: Sign the Agreement
You sign the loan agreement to confirm charges, tenure, and terms.
Step 6: Disbursement
Once the lien is confirmed, the loan amount is disbursed directly to your bank account—often within a few hours.
LAS with MyFinFlow
MyFinFlow simplifies the LAS journey by offering a fast, transparent, and guided process. With strong partnerships across banks and NBFCs, MyFinFlow ensures you get the best loan value for your securities.
Why choose MyFinFlow for LAS?
Easy online application
Quick evaluation of shares, mutual funds, and bonds
Fast approvals and seamless documentation
Competitive interest rates
Secure and transparent process
Dedicated assistance throughout your loan journey
Whether you need funds for business, personal needs, or emergencies, MyFinFlow ensures you get maximum liquidity without selling your long-term investments.
Conclusion
Loan Against Securities (LAS) is a smart financial tool that allows you to unlock the value of your investments without selling them. With lower interest rates, quick approvals, and high loan amounts, it’s becoming a preferred choice for many borrowers.
Platforms like MyFinFlow make LAS even more convenient with a smooth, digital, and trusted process.
