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.
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 The loan against security interest rate is determined only on the amount withdrawn for the period of the loan and is typically lower than that on a personal loan.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.