Loan Against Securities (LAS)
Get instant overdraft against Mutual Funds, Equity Shares, SGBs & Bonds without selling your investments!
Check Loan LimitWhat is Loan Against Securities (LAS)?
Loan Against Securities (LAS) is a smart financing facility that enables investors to leverage their existing assets—such as Equity Mutual Funds, Debt Funds, Equity Shares (Stocks), Sovereign Gold Bonds (SGB), Bonds, and Life Insurance Policies—as collateral to secure an instant Overdraft (OD) limit or term loan. The primary advantage of LAS is that you do not need to liquidate your wealth-building assets to meet urgent capital requirements.
Your pledged assets continue to grow in value, allowing you to earn stock dividends, benefit from SIP compounding, and receive SGB interest payouts uninterrupted. Partnering with MF Wale ensures competitive interest rates, transparent terms, and a seamless digital processing experience.
In today's dynamic financial ecosystem, maintaining portfolio liquidity without disturbing long-term investment strategies is crucial for wealth preservation. When unexpected financial hurdles arise—such as business working capital deficits, sudden medical emergencies, or real estate down payments—liquidating your equity mutual funds or selling blue-chip shares prematurely can trigger heavy capital gains taxes (STCG/LTCG) and exit loads. A Loan Against Securities (LAS) acts as a strategic financial cushion, allowing investors to borrow liquid cash against their portfolio holdings while deferring tax liabilities and protecting their compounded growth trajectory over time.
Furthermore, the mechanics of an overdraft-based LAS structure offer unmatched flexibility compared to traditional unsecured personal loans or business loans. Borrowers are only billed interest on the exact capital utilized and the duration for which the funds remain drawn, rather than the entire sanctioned credit limit. Because these loans are strictly backed by high-quality financial collateral like government bonds, institutional equity shares, and SEBI-registered mutual funds, lending institutions offer significantly lower interest rates and faster processing times without demanding complex physical collaterals or lengthy documentation loops.
At MF Wale, we guide clients through a streamlined, transparent digital journey to optimize their asset allocation and credit potential. Whether you hold your assets in dematerialized (Demat) formats or through leading registrar and transfer agents (RTAs) like CAMS and KFintech, our SEBI-certified advisory framework ensures complete regulatory compliance, secure lien-marking protocols, and rapid loan disbursal. Secure your liquidity today while letting your long-term investment goals stay firmly on track.
Real-World Example: Buying Property Using Loan Against Shares
Wondering how LAS helps you execute major life purchases like buying real estate without breaking your investment portfolio? Consider this practical scenario:
Scenario: Down Payment for a Property
- Portfolio Value: You hold ₹50,00,000 worth of approved equity shares in top-tier companies.
- Property Requirement: You need to arrange a down payment of ₹20,00,000 for a residential or commercial property, but you don't want to sell your shares and trigger capital gains tax or lose future market upside.
- How LAS Solves It: You apply for a Loan Against Securities through MF Wale. Against your shares, the lender sanctions an Overdraft limit of ₹20,00,000 (at standard 50% LTV).
- Fund Utilization & Interest: You draw the required ₹20,00,000 for your property down payment. You pay interest only on the exact amount utilized[cite: 1].
- Protected Growth: Your equity shares remain safe in your Demat account, continuing to earn corporate dividends and long-term capital appreciation[cite: 1]. Plus, there are zero pre-closure penalties when you repay the loan[cite: 1].
Eligible Assets & Loan to Value (LTV) Grid
Refer to the table below for eligible securities and their respective Loan-to-Value (LTV) percentages:
| Asset Category | Approved Instruments | Max Loan Limit (LTV %) | Key Benefit |
|---|---|---|---|
| Equity Mutual Funds | Approved Equity & Hybrid Mutual Funds | Up to 50% - 55% | SIPs continue without interruption. |
| Debt Mutual Funds | Liquid, Ultra Short & Debt Mutual Funds | Up to 75% - 80% | Higher loan value with low interest rates. |
| Equity Shares (Stocks) | Approved A-Group & Listed Stocks | Up to 50% | Retain dividend and bonus rights. |
| Sovereign Gold Bonds (SGB) | RBI Issued Sovereign Gold Bonds | Up to 70% - 75% | Earn 2.5% fixed interest during loan tenure. |
| Bonds & NCDs | Government Securities (G-Sec), Tax-Free Bonds | Up to 80% - 85% | Maximum LTV against fixed-income assets. |
| Life Insurance Policies | LIC & Approved Endowment Policies | Up to 85% - 90% of Surrender Value | Policy life risk cover remains fully active. |
Key Benefits of Loan Against Securities
1. No Portfolio Liquidation
Access funds without redeeming your Mutual Funds, Shares, or SGBs. Avoid Capital Gains Tax and exit charges completely.
2. Pay Interest Only on Drawn Amount
Operates like an Overdraft facility. Interest is levied daily only on the amount you withdraw, not on the total sanctioned limit.
3. Lower Interest Rates
Enjoy significantly lower interest rates compared to personal loans or credit card borrowing because the facility is backed by collaterals.
4. Zero Foreclosure Charges
Repay the borrowed amount whenever you have surplus cash without incurring pre-closure penalties or hidden charges.
5. Retain Portfolio Yields
All capital appreciation, stock dividends, and SGB annual interest payouts (2.5%) continue to credit directly to your bank account.
6. Quick Digital Disbursal
Hassle-free digital lien marking via CAMS, KFintech, and NSDL/CDSL for fast approval and quick account setup.
How Loan Against Securities Works (4 Simple Steps)
Step 1: Portfolio Evaluation
We evaluate your Mutual Fund, Stock, SGB, and Bond holdings using your PAN card to calculate your maximum eligible limit.
Step 2: Digital Lien Marking
Pledge your securities online via OTP verification through CAMS, KFintech, or NSDL/CDSL depositories.
Step 3: Overdraft Account Setup
An overdraft limit is sanctioned and linked to your bank account, enabling instant withdrawals whenever needed.
Step 4: Flexible Repayment
Repay the principle at your convenience to restore your limit. There are no rigid EMI compulsions.
Eligibility Criteria & Required Documents
Eligibility Criteria:
- Age: 21 to 65 years.
- Applicant Type: Resident Indian Individuals, HUFs, and Corporate Entities.
- Eligible Portfolio: Approved Mutual Funds, Demat Shares, RBI SGBs, or Corporate Bonds.
Documents Required:
- Identity Proof: PAN Card (Mandatory), Aadhaar Card / Passport.
- Address Proof: Aadhaar Card, Driving License, or Recent Utility Bills.
- Holding Statement: Consolidated Account Statement (CAS) or Demat Holding Statement.
- Bank Verification: Cancelled Cheque or 3-Month Bank Statement.
Frequently Asked Questions (FAQs)
A: Yes, you can get an overdraft loan up to 75% LTV against SGBs while continuing to receive the RBI-mandated 2.5% annual interest payout.
A: No, your ongoing Systematic Investment Plans (SIPs) will continue without any disruption, allowing compounding returns on your portfolio.
A: Once you clear the outstanding balance, a digital un-lien request is processed to release your pledged assets immediately.
A: You can secure up to 50% of the prevailing market value for approved listed equity shares.
Apply for Loan Against Securities Today
Contact SEBI-certified financial advisor Ravi Shankar Dwivedi to calculate your eligible portfolio limit.
Email: RAVIDWIVEDI@MFWALE.COM
Phone / WhatsApp: +91-9891880019
Office Address: Vatika Kunj -7, Gurgaon, Haryana, India
