Loan Against Securities (LAS)
A Loan Against Securities lets you borrow funds by pledging your existing shares, mutual funds or bonds as collateral, giving you access to liquidity for a short-term need without disturbing your long-term holdings or triggering a taxable sale.
It suits investors who need funds temporarily and would rather borrow against what they already own than exit positions that are core to their long-term plan.
Pick your fit
Types of LAS
LAS against Mutual Funds
Pledge your mutual fund units as collateral for a loan while the units stay invested and continue to grow.
Suited for investors with a sizeable mutual fund portfolio who need short-term liquidity.
LAS against Shares
Borrow against listed equity shares held in your demat account, typically at a loan-to-value set by the lender.
Suited for investors with concentrated equity holdings they don't want to sell.
LAS against Bonds
Use fixed-income holdings like bonds as collateral, generally with a higher loan-to-value than equity due to lower volatility.
Suited for investors with debt-heavy portfolios seeking a lower-cost borrowing option.
How they stack up
LAS vs Personal Loan vs Selling Investments
| Factor | LAS | Personal Loan | Selling Investments |
|---|---|---|---|
| Cost | Interest charged only on the amount drawn, typically lower than a personal loan | Higher interest rate, unsecured lending premium | No interest, but you may trigger capital gains tax |
| Impact on holdings | Holdings stay invested and continue to grow/earn | No impact on your investments | Holdings are permanently reduced |
| Speed | Generally fast, since holdings are already verifiable collateral | Can be slower, depending on documentation | Immediate, subject to market settlement times |
| Flexibility | Often works as an overdraft — draw and repay as needed | Fixed EMI schedule | One-time, no ongoing flexibility |
| Risk | A market fall can trigger a margin call requiring more collateral | No market-linked risk | You lose potential future upside on what you sold |
The bigger picture
What sets LAS apart
No sale needed
Access liquidity without disturbing your long-term investment holdings
Interest on usage
Pay interest only on the amount actually drawn, not the full sanctioned limit
No capital gains
Since you're borrowing, not selling, there's no taxable capital gains event
Quick access
Loans against existing, verifiable holdings are typically faster to process
Common questions
Frequently asked questions
Most LAS facilities accept listed shares, mutual fund units and bonds as collateral, though the specific list of eligible securities and the loan-to-value ratio varies by lender and security type.
Getting started
How to get a LAS through Prospire
Step 1
Consultation
Discuss your liquidity need, timeline and which holdings you're comfortable pledging.
Step 2
Collateral assessment
We assess your eligible securities and the loan amount you can access.
Step 3
Onboarding & documentation
Complete KYC, pledge formalities and loan documentation.
Step 4
Funds disbursed
Access funds while your investments stay pledged and continue to grow.
Loans Against Securities are subject to margin requirements and market risk. A fall in collateral value may trigger a margin call. Please read all loan terms carefully before borrowing.
Need liquidity without selling?
Talk to an expert about whether a LAS fits your situation.
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Whether you’re investing for a goal or reviewing your existing portfolio, our team is ready to listen.
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