Published on Oct 15, 2025Updated on Oct 19, 2026
If you are considering a Loan Against Securities (LAS), one of the first questions that may come to mind is what you can actually pledge as collateral. With so many financial instruments available, understanding which ones qualify as pledgeable securities for loan purposes is important. You might also wonder how the types of securities for LAS influence the Loan-to-Value Ratio (LTV) offered by the lender, and whether this affects the loan amount you can borrow.
This article will walk you through the different categories of securities typically accepted for an LAS and help you understand how they fit into a secured loan arrangement.
Must Read: How to Get a Loan Against Securities
In simple terms, pledging securities for borrowing means offering your existing investments to a lender as security in exchange for funds. Under a Loan Against Securities (LAS), you can use shares or other approved financial instruments as collateral. The lender then determines the amount you can borrow based on your eligibility, creditworthiness, the market value of these assets, and the applicable Loan-to-Value Ratio (LTV).
Several investment options can serve as collateral for a Loan Against Securities. Here are the most common:
Loan against shares and stocks is one of the most popular ways to raise funds. By pledging listed equity shares, you can unlock liquidity without having to sell them, while still retaining ownership and potential market gains.
Many lenders allow mutual funds as loan collateral, including both equity and debt schemes. The value of the pledged units and market performance usually determine the loan amount you can borrow.
You can also pledge bonds, including corporate and government bonds for loans.
Exchange-Traded Funds (ETFs) are another option you can pledge. They combine the features of mutual funds and stocks, offering diversification while serving as an acceptable security for a loan.
Depending on lender policies, other types of securities for LAS may also include debentures, insurance policies, fixed deposits (FDs), National Savings Certificates (NSCs), and Kisan Vikas Patra (KVP).
Eligible entities to avail of a LAS include Resident Indian individuals, Public and Private Limited Firms, Partnership Companies, Limited Liability Partnerships (LLPs), Private Trusts, Sole Proprietorships, and Hindu Undivided Families (HUFs).
They must also meet the following eligibility criteria to enjoy loan approval with competitive LAS interest rates:
Here’s how you can complete the online application process at SMFG India Credit:
To apply offline, visit your nearest SMFG India Credit branch and meet a customer care representative. You can also call our toll-free number 1800 419 8900 from 9:00 AM to 7:00 PM (on all days except Sundays, the 4th Saturday of the month, and public holidays), or reach out at [email protected].
A Loan Against Securities (LAS) offers a practical way to access funds while keeping your investments intact. By pledging approved financial instruments, you can secure liquidity with ease and flexibility. With an SMFG India Credit LAS, you can benefit from an LTV of up to 50–85%*, competitive interest rates, and quick processing. To get started, review the LAS eligibility criteria and documents, and apply online or at your nearest branch today.
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.
Approved instruments like shares, mutual funds, bonds, and ETFs can be pledged.
Yes, you can pledge listed equity shares to avail a loan against stocks.
Yes, both equity and debt mutual funds can be pledged as loan collateral.
Yes, you continue to receive dividends/returns even when securities are pledged.
Lenders usually allow a Loan-to-Value Ratio (LTV) of up to 50–85%*, depending on the security type.
Government securities are generally considered safer due to their stability and lower risk.
No, pledged shares generally cannot be traded during the loan tenure. Reach out to your lender for specific details.
The loan repayment tenure can extend up to 60 months*, depending on lender policies.
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