How Can I Use Equity Shares For A Loan? Read Below

LAS Growth Investment Knowledge hub

How Can I Use Equity Shares For A Loan? Read Below

09 December, 2021



Financial needs can arise at any time and loans have been a for-sure way to fulfill these needs. In all practicality, getting a loan is a long-term commitment, you need to consider all the pros and cons, plan your long-term finances, fulfill eligibility criteria and just be mentally prepared for the long-term challenge. 

In these situations, it’s easy to forget that there are various other less-stringent financing options that can get them the help they need. 

One such product is called a loan against equity shares. Yes, it is possible to get a loan on the shares you hold in your DEMAT account. Read more to find out how. 

What Is A Loan Against Shares? 

Shares are a valuable investment. When done right, they can reap you an unimaginable amount of benefits. Yet, you can further leverage your shares to avail a loan through LAS. 

A loan against equity shares or LAS is an instrument that allows you to keep your equity shares as collateral in turn for funds. This lesser-known product is often offered by banks and private financial institutions. 

The best thing about LAS is that, unlike loans, you don’t need any formal credit requirements to get a loan. All you need are KYC and investment proof. Some of the features of LAS include:

  • No prepayment penalty 
  • No formal credit or employment requirement 
  • Flexible repayment options
  • Your securities/portfolio stays untouched while you repay your loan

With LAS, you can avoid selling your securities, instead, you can leverage them further by opening a credit line. This way, you can enjoy instant liquidy while keeping your shares intact. 

Rely On Spark.Loans For LAS 

Spark. loans is India’s first online platform dedicated to LAS. With our mobile application, we make your loan-taking process as seamless as possible. 

Enjoy an overdraft facility on your listed shares and other DEMAT securities. Pay interest only on the amount that you withdraw and use. What’s more? Our systematic app allows you to pledge or sell your securities within a few clicks. 

Make the most of your equity shares with spark.loans. 

For more information visit our website. Follow us on Facebook, Instagram and LinkedIn for more financial tips and updates.

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