Please see information on Loans Against Securities below.


Use the potential of your assets to avail a loan, with a loan against securities. Find out more about this type of loan below.

What is a Loan against Securities?

A loan against security is a loan which allows you to use your financial assets to avail money. In other words, you can use one of many financial assets to guarantee the loan. Securities you can use to avail the loan include:

  • Mutual fund units
  • Life insurance policies
  • Shares (equity shares, demat shares)
  • Exchange Traded Funds (ETFs)
  • Bonds
  • Other financial assets

By using your assets, you can unlock money while not being required to sell them. You are merely using them as a security to guarantee your loan.

Whose Securities Can I Pledge?

You can use your own securities, those of your family members and in some cases you can use securities belonging to third party members, but this depends on the bank or lender. If you use securities that belong to third party people you may have to provide full proof that you have permission to use them.

For What Purpose is a Loan against Security?

You can use this type of loan for any purposes, whether they are personal or business.

What are the Loan Amounts?

The amount you can borrow depends on the value of your assets and on the terms of the bank or lender from whom you are borrowing. In some cases, you can borrow only around 50% of the value whereas in other cases the percentage will be much higher.

Are there Fees?

As with most loans in India, there are likely to be additional fees on the loan. These might include processing fees, administration fees and application fees. Find out any fees and charges before you apply for the loan.

How Do I Receive the Loan?

Most loans against securities are given in the form of an overdraft. The bank or lender will set up an account in your name on which an overdraft limit based on the value of the loan. Of course, you will be charged interest rates but these can be very reasonable on this type of loan.

Remember to bear in mind that if you are unable to keep up with your loan repayments, you may risk losing your pledged assets, as they may be seized by the bank as payment of your outstanding debts.


Please Note: is not authorised to give advice under Indian financial regulations.

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