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Published on May 20, 2022Updated on Oct 14, 2026

Availing a loan against securities gives you, the borrower, the advantage to use your existing financial assets to avail a loan. You can pledge shares, mutual funds, bonds, etc to get a line of credit. There are many factors that need to be taken under consideration which can impact the decision to avail a loan like market conditions, investment goals and risk appetite.
It is important to select the right investments for security by keeping it as a healthy mix of investments from your portfolio. When an urgent requirement for money comes up unexpectedly, instead of liquidating your investments, you can take the better option to avail a loan against your securities. This is the simplest, most convenient, and immediate way to get finances and the loan amount can go from INR 5 lakhs up to INR 5 crores at attractive rates of interest. The below table mentions the charges and fees for loan against securities:
|
Charges |
Amount |
|
Processing fee |
3% of loan amount |
|
Delayed EMI payment |
24% per annum on outstanding which is calculated on day to day basis |
|
Liquidation charges |
0.25% of value of securities liquidated |
|
Pledge creation |
Rs. 50 per security |
|
Stamp Duty |
At applicable rates |
|
Annual Maintenance |
Rs. 1000 per crore of sanctioned amount |
|
Payment charger |
Nil for overdraft facility |
By availing a loan against securities, you do not miss out on market gains and your assets may continue to grow. You can simply apply for the facility online to save time.
Follow the steps given below:
While applying for this facility, you will need to submit some documentation. Here is a basic list. Please note that additional documents may be requested depending on whether the applicant is an individual / entity, and our policy at the time of loan application.
Some salient features of availing a loan against securities are mentioned below:
Loans against securities are secured loans and have a higher possible chance of getting sanctioned. It is one of the most attractive loan availing facilities in the country. It is important to do your research and choose a reputed, trusted lender who offers excellent service and whose required eligibility criteria match your profile. It is important to have clarity on your financial goals and do a detailed study on features and benefits that availing a loan against securities brings you as it needs to compliment your investment goals.
Important Note: This article is for general informational purposes only and may be subject to change from time to time. As product features, eligibility criteria, interest rates, charges, fees, tenures and other terms may be revised as per SMFG India Credit's policies, readers are advised to refer to the latest details from the respective product pages (please select from the top menu). For the latest loan charges, please visit Charges & Fees Link and for the latest Interest rates, please visit Interest Rate Rationale. Please note that final loan terms, disbursement process and eligibility criteria will depend on SMFG India Credit's policies at the time of loan application.
The content of this article is for information purposes only and does not constitute as, an offer or advise to avail any products or services from, or, a commitment to grant any loan by the company. It is not intended to create any rights or obligations against us. All content is provided "as is" without any warranty of any kind, either express or implied & we disclaim any warranty or representation, whatsoever, in regards to the content. Please refer to the Privacy Policy of the company to understand the use, processing and storage of your personal data.
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