List Of Securities That Are Eligible For A Loan Against Securities

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List Of Securities That Are Eligible For A Loan Against Securities

07 January, 2022

List Of Securities That Are Eligible For A Loan Against Securities

A loan against securities, also known as LAS is a financial product that allows an investor to get a loan against the value of their securities. As the name suggests, a Loan against securities is specifically made for investments in securities, hence it is not just limited to stock market shares. 

In this blog, we will list securities that are eligible for a loan. If you have any investments that you wish to capitalize on more through LAS, then check to see if it makes the list below! 

List Of Securities That Are Eligible For A Loan Against Securities

Equity Shares

A share is the percentage of the ownership of a company. In simple terms, the number of shares you hold represents how much ownership you have in that company. People invest in shares to earn returns on them. A company's performance determines how much return you can get on your shares. 

They are often held in an electronic form and in a dematerialized account (DEMAT). A loan against shares is provided against equity shares. With this option, you will be able to get a loan against the value of your shares. You can easily pledge them and keep them as collateral with a LAS provider. 

Want a loan against your equity shares? Rely on India’s first digital platform for a loan against securities. Learn More.  

Insurance Policies

If you have an existing insurance policy, then you can get a loan against it from any LAS provider. The loan ticket size is typically dependent on the value of your overall policy, but banks often provide 80-90% of the surrender value. Once you pay back your loan, you can get back your policy without any problems. It is available on all kinds of insurance plans including endowment, unit-linked, whole life plans, income plans, etc.

Mutual Funds 

LAS is available on mutual fund investments. The LAS provider will hold your mutual funds as collateral until you pay off the loan. Your mutual funds will keep growing on a monthly basis, however, you can’t sell them off until you pay back the loan amount. Your investments will stay intact just the way they are and you can pay the loan off flexibly. 

Non-convertible Debentures (NCD)

Debentures that cannot be converted into fixed income shares or equity are known as non-convertible debentures. These debentures are eligible for a loan against securities based on their value. Once the loan amount is paid off, you can get back ownership of your debentures with returns intact. You can get up to 70% of the total value. 


Bonds from the National Bank for Agriculture and Rural Development (NABARD) are more secured than other types of bonds. These bonds are often given a ‘CRISIL AAA/Stable’ rate by the Credit Rating Information Services Of India Limited (CRISIL). These bonds are also eligible for a loan based on their value. The loan value typically falls to 65% of the total value. 

National Savings Certificate (NSC)

National Savings Certificates, typically known as NSC is a government bond used as a small saving and income tax-saving tool. This tool is also eligible for a loan based on its value. A loan against NSC is often provided by banks with up 85-90% of the total value. They are accepted in the form of DEMAT only.

Other Securities 

Apart from the above, some of the lesser-known securities eligible for a loan include the following: 

  • Gold Deposit Certificate 
  • UTI Bonds
  • Kisan Vikas Patra

With LAS, your securities are in safe hands. Enjoy a loan against the value of your investments and fulfill your financial dreams. Repay your loans without any prepayment penalty and flexible repayment for the principal amount. 

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