Get the Tata Capital App to apply for Loans & manage your account. Download Now

Blogs SUPPORT
Loans For You
Loans for Business
Investment
Insurance
Apply

Quick Links for loans

Quick Links for Insurance

Investment

Offers Quick Pay
Back

Equipment Finance

Avail Digital Equipment Loans
up to Rs. 1 Crore

  • Attractive ROIs
  • Customizable Loan tenure
Know More
Back

Equipment Leasing

Avail Leasing solutions
for all asset classes

  • Up to 100% financing
  • No additional collateral required
Know More
Back

New Commercial Vehicle Financing

  • First time user
  • Retail and strategic Clients
Know More
Back

Used Commercial Vehicle finance

  • Repurchase
  • Refinance
  • Top up
  • Balance Transfer
Know More
Menu  
 
Apply Now

Tata Capital > Blog > Loan on Securities > Tips to Qualify for Availing Loan Against Security

Loan on Securities

Tips to Qualify for Availing Loan Against Security

Tips to Qualify for Availing Loan Against Security

A loan against security (LAS) is one of the most common types of loans. A secured loan, it allows you to borrow funds financial securities against them. Read on to find out how you can qualify for LAS loan.

Know More

1. What is a Loan Against Security?

A loan against security is sanctioned against a pledge of security such as mutual funds, insurance, etc. The list of approved securities for LAS loan varied across lenders. Typically, a loan against securities is approved for the following:

  • Mutual
    fund
  • Demat
    shares
  • Non-convertible
    debentures
  • Insurance
  • NABARD
    and UTI Bonds
  • National
    Savings Certificate (NSC)
  • Kisan
    Vikas Patra (KVP)

If you’ve pledged shares, you still continue to enjoy ownership benefits – rights, bonuses, etc. In turn, you get an overdraft facility with a limit based on the value of the securities pledged. You are then free to choose how and when to use the LAS loan funds. The loan against security interest rate is determined only on the amount withdrawn for the period of the loan and is typically lower than that on a personal loan.

The biggest advantage of such a loan is that you can get access to funds quickly whenever you need them without giving up your shareholder rights to dividends and bonuses. Thus, a loan against security is a good way to meet short-term financial needs.

2. Important Features to Know

Loan against securities is a secured loan since the bonds or shares are pledged as collateral. Typically, the tenure is one year, which you can renew if need be. The loan amount will depend on the type of security you offer. If you wish to prepay your LAS loan, you can do so without any prepayment charges. 

Do note that mutual funds exempt from capital gains tax (under Sections 54EA/EB) are not accepted as collateral.

 

Additional Read:- How Does a Loan Against Security Work?

3. Eligibility Criteria

Loan against securities eligibility criteria vary depending on the lender. At Tata Capital, LAS loans are available to both salaried employees and self-employed individuals. You must be within the age group of 18-65 years to avail a loan at Tata Capital.

LAS loans are also available to organisations holding the eligible securities that have been in existence for at least 2 years.

We accept the following securities for a loan –

  • Equity/ Demat Shares
  • Non Convertible Debentures
  • Mutual Fund Units
  • Bonds and Government Schemes

Keep the following documents ready when applying for a loan against securities at Tata Capital –

  • Photo Identity Proof
  • Address Proof
  • Income Proof
  • Bank Statements
  • Salary Slips
  • Passport Size Photo

4. How to Apply

At Tata Capital, we understand how much you value your investments. With our easy loans against securities, we help you meet both short and long-term financial goals while retaining the ownership of your securities. We also offer you the flexibility to swap securities based on your assessment of the markets!

Additional Read:- Top Documents Required for a Loan Against Security

Our application process is fairly simple and quick – select your loan amount and tenure, submit your application, and get funds in your account. Visit us today to understand our loan against securities eligibility today.

Apply Now
Check EMI

Boost Your Investment Potential with a Loan Against Securities!

Apply now
Disclaimer

Most Viewed Blogs

Trending Blogs

Calculator

Personal Loan EMI Calculator

Personal Loan EMI Calculator
Home Loan EMI Calculator

Home Loan EMI Calculator
Business Loan EMI Calculator

Business Loan EMI Calculator
Used Car Loan EMI Calculator

Used Car Loan EMI Calculator
Two Wheeler Loan EMI Calculator

Two Wheeler Loan EMI Calculator
Loan Against Securities Calculator

Loan Against Securities Calculator
Loan Against Property Calculator

Loan Against Property Calculator
More Tools
Our Subsidiaries
Our Other Websites

Important Information

Investor Information

Visit us on:,Visit us on: www.tatacapitalmoneyfy.com,www.tatacapitalmoneyfy.com

Our Private Equity Funds

Amalgamated Companies

Top Branches
Most Important Terms & Conditions - Home Loans

Download in your preferred language

Download

Policies, Codes & Other Documents

Most Important Terms & Conditions - Home Loans

Download in your preferred language

Download

Tata Capital Solutions & Services

Uh oh, something went wrong

Please try again later.