🔑 Key Highlights
| Feature | Description |
|---|---|
| Loan Type | Secured loan |
| Collateral | Shares, Mutual Funds, Bonds, ETFs, Insurance, etc. |
| Loan Amount | Up to 50–80% of the current market value of securities |
| Interest Rate | Typically 9% – 14% p.a. |
| Tenure | Up to 1 year (can be renewed) |
| Facility Type | Term Loan or Overdraft (OD) facility |
| Ownership | You retain ownership; lender places a lien on the securities |
📦 Eligible Securities
| Type of Security | Notes |
|---|---|
| Equity Shares | Listed, dematerialized stocks only |
| Mutual Funds | Equity, Debt, Hybrid funds allowed (NAV-based) |
| Bonds & Debentures | Government and PSU bonds preferred |
| ETFs / Gold ETFs | Highly liquid ETFs accepted by many banks |
| Insurance Policies | Only with surrender value (endowment, not term plans) |
🧮 Sample Calculation
| Market Value of Shares | ₹10,00,000 |
|---|---|
| Loan-to-Value (LTV) | 70% |
| Approved Loan Amount | ₹7,00,000 |
| Interest Rate | 11% p.a. |
| Monthly Interest | ₹6,417 |
Apply Loan
📋 Documents Required
PAN, Aadhaar
Demat statement / Mutual fund statement
Bank account details
Signed loan application
Lien marking form (to pledge securities)
✅ Advantages of LAS
💰 Access funds without selling your investments
🔁 OD-like flexibility (withdraw as needed, pay interest on used amount)
⏱️ Quick disbursement and minimal documentation
🧾 No need for high credit score or income proof
💹 Continued dividends and capital gains from your securities
📉 Lower interest than personal loans
⚠️ Considerations / Risks
| Concern | Why It Matters |
|---|---|
| Market volatility | If asset value drops, the bank may demand additional margin |
| Loan-to-Value (LTV) Limits | Set by RBI (e.g., 50% for shares) |
| Liquidation risk | Lender can sell securities if you default |
| Asset restriction | Only liquid, approved securities are eligible |
🧠 Best Use Cases
Medical emergencies
Short-term business needs
Paying education or tax dues
Avoiding investment liquidation during market dips
🔁 LAS vs Personal Loan vs Gold Loan
| Feature | LAS | Personal Loan | Gold Loan |
|---|---|---|---|
| Collateral | Securities | None | Gold |
| Interest Rate | 9–14% | 11–20% | 8–12% |
| Loan Amount | Based on asset value | Based on income | Based on gold purity |
| Flexibility | Overdraft & term loan | EMI-based only | Term/OD both |