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

Blogs

SUPPORT

Repayment
Apply Now
Overview Required Documents Rates & Charges Repayment

Loan Against Shares Repayment Options

The repayment of a loan can cause a bit of financial stress if not planned properly. However, when you avail of a loan against securities from Tata Capital, you don’t have to worry about its repayment. We allow multiple repayment Options so that you can repay your loan against shares at your own convenience.

You can borrow from a fixed loan limit as per the value of the securities deposited by you, and then repay the drawn amount in a convenient tenure. Moreover, you can even choose to make full or part prepayments on your loan against securities account without incurring any additional charges.

Even if you decide to repay the entire loan amount within one or two days of disbursement, we won’t charge you any additional prepayment fee for it.

whatsapp

Avail TATA Capital loans directly from WhatsApp

How to Repay Loan Against Shares: Interest & Principal

When you apply for a loan against equity shares or mutual funds with us, we will create your Loan Facility account with Tata Capital Limited. You can withdraw from this Loan Facility account to meet your urgent financial requirements. The interest would be charged only on the amount used by you and not on the entire loan limit.

The interest due on your loan against securities limit will get accumulated in your Loan Facility account on a daily basis. However, you will receive notifications to pay your interest only after the end of every month. You can make the interest payment via Cheque, Demand Draft (DD), or Pay Order (PO). We have implemented NACH/E-NACH facility for presentation and this would make repayment easier and hassle free for you.

Please ensure that adequate funds are available in your bank account at least one day before the NACH debit date. (e.g., maintain sufficient balance by the 2nd of the month for a debit scheduled on the 3rd) to avoid a failed auto-debit and any associated return charges.

How to Apply for Loan Against Securities?

  • Branch

    Visit our branch and talk to our lending expert to avail a loan.

    Locate a Branch

  • Online

    Get swift access to funds by applying for a Loan Against Securities through our online application process. In fact, if you don’t have the time to finish the application, we may call you to assist you with the process.

    Apply Now

  • Virtual Assistant

    Why waste your precious time waiting for a response? We get you real-time answers to all your queries with our 24/7 virtual assistant.

Tips for Timely Loan Against Shares Repayment

Managing your LAS repayment proactively protects your pledged securities from margin calls and foreclosure. Here are some practical tips:

  • Monitor your portfolio value regularly: Since LAS is linked to the market value of pledged securities, a drop in portfolio value can trigger a margin call requiring you to either top up securities or repay a portion of the outstanding amount.

  • Set up auto-debit for interest payments: LAS interest is typically charged monthly; setting up a standing instruction prevents missed payments and penalty charges.

  • Repay the principal in chunks when liquidity permits: Since most LAS products are overdraft-based, repaying drawn amounts when you have surplus funds reduces the daily interest outgo.

  • Maintain a buffer above the minimum LTV: Keeping your utilization below the maximum permitted limit creates a safety cushion against market volatility.

  • Track approaching renewal dates: Some LAS facilities have an annual review date; ensure your documents and portfolio are in order well in advance of that date.

FAQs on Loan Against Shares Repayment

What is the EMI calculation method for a loan against shares?

Most LAS facilities operate as overdraft lines with no fixed EMI. Interest is calculated daily on the outstanding drawn amount and debited monthly. If the facility is structured as a term loan, EMIs are computed on the standard reducing-balance formula using the sanctioned amount, applicable rate, and tenure.

What are the different repayment options for a loan against shares?

Repayment options include monthly interest payments with principal repayment at maturity (overdraft structure), regular EMIs for term-based LAS, bullet repayment at the end of the tenure for certain structures, and part payments at any time to reduce the outstanding balance and lower interest costs.

Are there prepayment or foreclosure charges for a loan against shares?

Prepayment charges for LAS products vary by the specific product structure and lender policy. For overdraft-based LAS facilities, repayment of the drawn amount at any time is typically permissible without charges. For fixed-term LAS loans, foreclosure charges may apply as specified in the loan agreement.

Can I make part prepayments on my loan against shares?

Yes, for overdraft-structured LAS facilities, you can repay any portion of the outstanding drawn amount at any time. This directly reduces the balance on which daily interest is charged, resulting in immediate interest savings. There are generally no restrictions on the number or amount of part payments for standard LAS products.

How soon after full repayment are my shares released?

Upon full repayment of the LAS outstanding, including all principal, interest, and applicable charges, Tata Capital initiates the lien-release process for the pledged securities. The timeline for lien removal and transfer of securities back to your demat account typically takes a few working days after closure confirmation.

What happens if I miss an EMI or interest payment on my LAS?

Missing an interest payment on an LAS facility triggers penal interest charges on the overdue amount. If the portfolio value falls below the minimum required margin due to non-payment or market decline, the lender may initiate a margin call requiring immediate payment or additional security. Persistent non-payment can result in the lender selling pledged securities to recover the outstanding dues.

Related Videos

Loan Against Securities
#loanagainstsecurities

Know more about Loan Against Securities

Play it smart and leverage your existing assets to achieve your financial goals. Apne securities ki value badhao aur cash pao! Access hassle- free financing with Tata Capital Loan against security. 

1:17

Loan Against Security Blogs

Loan Against Securities
Loan Against Securities
What is Securitization? Definition, Process & Examples
11 March, 2024
Loan Against Securities
Loan Against Securities
Loan Against National Savings Certificates (NSC)
11 March, 2024
Loan Against Securities
Loan Against Securities
Loan Against Mutual Funds: Everything You Need to Know
11 March, 2024
Loan Against Securities
Loan Against Securities
Loan Against LIC Policy: Interest Rate, Eligibility and How to Apply
11 March, 2024
Our Subsidiaries
Our Private Equity Funds

Useful Links and Resources

Policies, Codes & Other Documents

Tata Capital Solutions & Services

Copyright © 2026 Tata Capital Limited

error-icon

Uh oh, something went wrong

Please try again later.

Most Important Terms & Conditions - Home Loans

Download in your preferred language

Download

Beware of Frauds!

For any assistance, contact our customer support

offers-icon

rahul.sharma@gmail.com

Looking for offers...

loader
tia-chatbot tia-chatbot-mobile