Check which investments qualify
Lenders maintain their own approved lists and valuation rules. Holding an investment does not automatically make it eligible as security.
Loan Against Securities Guidance
Understand the borrowing behind a portfolio pledge.
Understand how eligible shares, mutual funds or bonds may support a borrowing requirement without an immediate sale. Accepted investments, valuation and borrowing limits depend on the lender. Market movements can affect the amount you can borrow and maintain.
An enquiry is not a loan application approval. Availability, pricing and final terms are determined by the lender.
Who this is for
Eligibility depends on the holdings, not just their value
Providers maintain approved-security lists and apply their own lending values and concentration rules. The available amount can change with the portfolio’s value. A holding that is acceptable today is not a promise that the same borrowing limit will remain available throughout the facility.
Purposes to discuss
- Eligible shares
- Approved mutual funds
- Eligible bonds
- Funding against an investment portfolio
Permitted use of funds depends on the chosen product.
What to understand
Keep market risk in your borrowing plan.
Allow for market movements
If the value of pledged investments falls, you may need to provide additional security or repay part of the balance. Unresolved shortfalls can lead to the sale of pledged assets under the agreement.
Understand the borrowing structure
Ask whether the facility is a loan or overdraft, how interest is charged, and what renewal, pledge and release charges apply. Compare the complete terms with your expected borrowing period.
Prepare with purpose
Documents for a useful first discussion
Use this as a starting checklist. The chosen lender will confirm the records, format and period it needs for your case.
Use the website form for an initial enquiry. Do not include account passwords, PINs or sensitive identity numbers in the message.
Read the documents guide- Identity and address evidence requested by the lender
- Recent investment or demat statements
- Details of securities proposed as collateral
- Income and bank records where required
- Pledge or lien documentation through the lender’s authorised process
From planning to review
Your loan against securities preparation path.
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List the proposed holdings
Use recent investment or demat statements to identify the securities.
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Confirm lender acceptance
Check approved holdings, lending values and concentration limits.
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Review shortfall conditions
Understand when more security or a repayment may be requested.
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Use the authorised pledge process
Confirm the facility, interest calculation and release procedure.
Repayment planning
An overdraft needs a different cost comparison
The calculator illustrates a fixed-rate instalment loan. A facility charged on the amount utilised may behave differently. Ask for worked examples for your expected usage, including renewal and pledge-related charges.
Calculate an illustrative EMI
Questions, answered
Loan Against Securities questions
Can I borrow against any share or mutual fund?
No. The lender decides which securities it accepts and the lending value for each. Confirm your specific holdings before proceeding.
Could my investments be sold?
Yes. Under the agreement, default or an unresolved margin shortfall can result in enforcement or sale. Understand these risks before pledging investments.
A useful next step