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Loan Against Securities

Pledge your mutual fund / equity holdings as collateral. Banks and NBFCs offer up to 50-65% LTV at 8-12% interest. You keep ownership and can continue to earn dividends.

₹20,00,000
10.0%
Eligible loan
₹13,00,000
LTV 65%
Monthly interest₹10,833
Annual interest₹1,30,000

FAQ

What if my portfolio drops 20%?

Margin call from lender. You either deposit more cash, pledge more securities, or sell some collateral to maintain LTV. If unmet within 24-48 hrs, lender liquidates.

LAS interest tax-deductible?

Only if loan funds are used for taxable income (e.g., business / new investment). LAS for personal use is not deductible.

LAS via banks vs DEMAT brokers?

Bank LAS — 8-10%, larger limits, slower process. Broker LAS (Zerodha, ICICI Direct) — 12-14%, faster, lower limits.