Published on Nov 6, 2025
When you need urgent funds, one of the first thoughts that may come to mind is to liquidate your existing investments. While this provides quick access to money, it often comes with disadvantages such as losing out on potential future gains, disrupting long-term financial goals, or even incurring exit load expenses.
Instead of selling your assets, there are smarter secured loan options that allow you to raise funds without giving up ownership of your investments.
A Loan Against Securities (LAS full form) is one such facility offered by financial institutions that enables borrowing against shares and other investments. In this article, we’ll learn about the meaning of Loan Against Securities and how they can help manage your short-term financing needs without compromising your long-term wealth-building strategy.
A Loan Against Securities is a type of credit facility where you can borrow money by pledging your investments as collateral. Instead of liquidating your portfolio, you can use financial assets such as equity shares, mutual funds, or bonds to secure the loan.
In simple terms, it is a loan using financial securities, where the financial institution offers you funds against the value of your pledged securities. You continue to remain the owner of these investments and can benefit from any potential growth, while the lender holds them as security until the loan is repaid.
While both LAS and a personal loan can be used to meet urgent financial needs, they differ in key ways. A Loan Against Securities is a secured loan, where your investments act as collateral. In contrast, a personal loan is an unsecured loan, which does not require any pledged assets. Being backed by collateral, LAS interest rates are usually lower compared to those of personal loans.
Another distinction lies in how the loan amount is determined. With LAS, the sanctioned amount is also influenced by the lender’s Loan-to-Value (LTV) ratio, whereas in the case of a personal loan, it is more closely tied to your income level, repayment capacity, credit score, and other factors.
In addition, LAS offers the benefit of prepayment without extra charges*, while personal loans may attract prepayment penalties depending on the lender’s terms and the number of EMIs already paid.
Here are some of the key advantages of Loan Against Securities:
Here are the common requirements:
*These are the basic eligibility criteria. Final loan approval will be subject to an overall assessment of the applicant’s profile as well as the lender’s policies at the time of application.
Apart from the standard interest rates, you should also consider the following fees and charges, which may differ depending on the lender:
*Applicable for Securities in demat form
The applicable LAS interest rate depends on a variety of factors, including:
Before applying for a Loan Against Securities, keep the following in mind:
The following financial instruments can generally be pledged:
Here’s how you can easily apply for a Loan Against Securities at SMFG India Credit:
If you prefer applying offline, visit your nearest SMFG India Credit branch and connect with a customer care representative. You can also contact us at our toll-free number 1800 419 8900 from 9:00 AM to 7:00 PM (every day except Sundays, the 4th Saturday of the month, and public holidays), or write to us at [email protected].
A Loan Against Securities can be used for a variety of financial needs, such as:
A Loan Against Securities offers a smart way to access funds without liquidating your investments, giving you both flexibility and convenience. With an SMFG India Credit LAS, you can enjoy an LTV of up to 50–85%* and competitive interest rates, along with quick processing and minimal documentation. To get started, review our LAS eligibility criteria and documents, and apply online 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.
The LAS full form is Loan Against Securities.
You can generally pledge shares, mutual funds, bonds, and ETFs for a Loan Against Securities.
Most lenders require a minimum CIBIL score of 600.
The total cost depends on the interest rate, processing fees, and other applicable charges.
The loan amount depends on the lender’s Loan-to-Value (LTV) ratio and the value of pledged securities.
Loan Against Securities is a secured loan as it is backed by collateral.
SMFG India Credit offers a Loan Against Securities with an LTV of up to 50–85%*.
You get benefits such as competitive interest rates, quick processing, no prepayment charges*, and a dedicated relationship manager.
Yes, you can apply for a Loan Against Securities online through our website.
Processing is quick, but the final timeline depends on applicant eligibility and the lender’s policies.
The lender may ask you to pledge additional securities or partially repay the loan.
Yes, Loan Against Securities can be prepaid anytime without charges*.
Yes, you continue to earn a potential return on securities even while they are pledged.
Loan Against Securities comes with a flexible tenure, typically up to 60 months*.
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