A Loan Against Securities (LAS) is a loan offered by banks and NBFCs against your investments like shares<\/a>, mutual fund<\/a>s, and bonds<\/a>. You pledge your holdings as collateral. Indian investors use LAS for short-term needs without selling their investments.<\/p>\n This guide explains how LAS works.<\/p>\n LAS is a secured loan against approved investments. You pledge:<\/p>\n The lender holds the pledge until you repay.<\/p>\n When you apply:<\/p>\n Dividend<\/a>s and bonus benefits stay with you.<\/p>\n LAS matters for three reasons:<\/p>\n A clean LAS supports flexible borrowing.<\/p>\n Borrowers use LAS for:<\/p>\n The flexibility makes LAS useful.<\/p>\n LTV depends on the security type:<\/p>\n The margin protects the lender from market falls.<\/p>\n LAS offers:<\/p>\n These benefits suit short-term cash needs.<\/p>\n Risks include:<\/p>\n A clear plan helps manage these.<\/p>\n LAS rates are usually:<\/p>\n Rates depend on the security type.<\/p>\n Borrowers often:<\/p>\n A clean plan avoids these errors.<\/p>\n A few habits help:<\/p>\n A margin call happens when the value of your pledged investments falls. The lender may:<\/p>\n Watch the market and respond quickly.<\/p>\n A common method:<\/p>\n The process is often quick.<\/p>\n The two differ:<\/p>\n LAS suits temporary needs.<\/p>\n The two differ:<\/p>\n LAS is cheaper if you have securities.<\/p>\n While pledged:<\/p>\n The investments work for you while pledged.<\/p>\n LAS gives access to cash without selling your investments. Use it carefully, watch the market, and let your portfolio<\/a> work as a financial tool when needed.<\/p>\n Avoid LAS for:<\/p>\nWhat Is LAS?<\/h2>\n
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How LAS Works<\/h2>\n
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Why LAS Matters<\/h2>\n
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Common Uses<\/h2>\n
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Loan-to-Value Limits<\/h2>\n
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Benefits<\/h2>\n
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Risks<\/h2>\n
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Interest Rates<\/h2>\n
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Common Mistakes<\/h2>\n
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Tips for Better Use<\/h2>\n
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Margin Call<\/h2>\n
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How to Apply<\/h2>\n
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LAS vs Selling Investments<\/h2>\n
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LAS vs Personal Loan<\/h2>\n
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Pledged Investments and Corporate Actions<\/h2>\n
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Key Takeaways<\/h2>\n
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When Not to Use LAS<\/h2>\n