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Loan against securities interest rates apply to the loan amount and the loan tenure. These rates are calculated daily as a percentage of the principal loan amount and vary from one lender to another. 

Tata Capital offers a loan against shares, mutual funds, and bonds. Our loan against shares interest rates are the most affordable based on your loan eligibility, monthly income, credit score, and security type.

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Loan Against Shares, Bonds & Mutual Funds: Interest Rates & Charges

Type of Charge Loan against shares applicable rate
Interest rate 9.5% to 14%*


*Depending on loan amount and quality of securities
Non-refundable loan processing charge Up to 3% of the sanctioned loan amount + GST
Stamp duty At actuals
Lien creation charges - LAS - MF Rs. 350 per Registrar and Transfer Agent (RTA) per lien creation
Lien invocation/revocation charges - LAS - MF Rs. 100 per RTA per lien invocation/revocation

*Terms & Conditions apply.
 

* We are not charging switch fees for LAS as this option is not being provided to the borrower.

Annual Maintenance, Lien & Foreclosure Charges

We also levy the following Contingent charges on our loans against securities:

Type of Charge Applicable Rates
Annual maintenance charges/ renewal charges:

 

This is a yearly fee charged for maintaining or renewing the loan account.

 


Up to 3% of the loan amount + GST (as per the loan agreement)
Repossession charges/liquidation charges

Fees charged by the lender for recovering or selling the pledged shares in case of loan default or margin shortfall.

0.35% of sale consideration + brokerage applicable
Collection Charges NIL
Prepayment/ Foreclosure charges NIL
Cooling off/look-up period (Borrower shall not be charged any penalty on prepayment of loan) 3 days from the date of loan disbursal

Note: GST, other government taxes and levies as applicable, will be payable on all charges.

    Penal Charges and Late Payment Fees

  • Late Payment or EMI Default

    This is a charge for late payments, calculated based on the number of days your dues remain unpaid.

    3% per month on overdue amount (36%  p.a.)

  • Cheque or Payment Bounce Charges

    These are the charges that are levied in case of a repayment bounce.

    Rs. 600/- per instrument per instance

  • Auto-Debit or Mandate Rejection Charges

    NIL

  • Charges for Non-Creation of Security

    NIL

    •  

    Note: *(GST, other government taxes and levies as applicable, will be payable on all charges)

Tips to Get the Lowest Loan Against Shares/Bonds Interest Rate

When applying for a loan against shares or bonds, the interest rate offered may vary depending on several financial and market-related factors. By maintaining a strong financial profile and choosing the right loan structure, borrowers can improve their chances of securing competitive interest rates.

  • Maintain a Strong Credit Profile: A good credit score and positive repayment history can help you qualify for more favourable interest rate terms.

  • Pledge High-Quality Securities: Shares or bonds from well-established companies with stable market value may help improve loan eligibility and interest rate terms.

  • Choose an Appropriate Loan Amount: Borrowing within a reasonable loan-to-value ratio may help reduce the overall risk and improve the interest rate offered.

  • Maintain Stable Financials: Consistent income and a stable financial profile can support better loan evaluation.

  • Compare Loan Terms Carefully: Reviewing loan terms, repayment flexibility, and applicable charges can help you choose a suitable financing option.

Following these steps can help borrowers secure a more competitive interest rate when applying for a loan against shares or bonds.

Eligibility Criteria for Loan Against Securities

Here’s the eligibility criteria for a loan against shares.

  • Age: The applicant must be between 18 and 70 years old.

  • Nationality: The applicant must be an Indian citizen. 

  • Employment type: Both salaried and self-employed individuals, including proprietorship, partnership, trust, HUF, and companies, are eligible. 

  • Share ownership: The shares held in a demat account must be in the applicant’s name. 

  • Minimum portfolio value: The applicant must hold a minimum portfolio value of Rs. 50,000.

  • Credit score: A high credit score and strong repayment capacity are preferred. 

Eligibility Criteria for Different Types of Securities

LAS eligibility varies based on the type of security being pledged. Here is a quick reference:
 

Security Type Typical LTV Eligibility Note
Listed Equity Shares Up to 50% of market value Must be in the approved list of securities.
Mutual Fund Units (Equity) Up to 50% of NAV Eligible funds listed by the lender; no lock-in period.
Mutual Fund Units (Debt) Up to 80% of NAV Liquid and short-duration funds are typically accepted.
Government Bonds Up to 85% of the face value Sovereign-backed; high LTV due to low default risk.
Corporate Bonds/Debentures Up to 70% of market value Investment-grade-rated instruments preferred
Insurance Policies Up to surrender value Subject to policy terms and lender acceptance

Frequently Asked Questions on LAS Interest Rate & Charges

What are the fees and charges associated with a loan against securities?

A loan against securities from Tata Capital comes with certain fees and charges in addition to the interest rate. These charges cover processing, maintenance, and penalties in case of defaults. While some charges are standard, others may vary depending on the type of security and the terms of your loan agreement. For the latest details, it’s best to refer to the Tata Capital website. Common charges include:

  • Processing fees: Up to 3% of the sanctioned loan amount + GST

  • Stamp duty: At actuals

  • Lien creation or revocation (mutual funds): Rs. 350 per lien creation and Rs. 100 per invocation/revocation

  • Annual maintenance/renewal charges: Up to 3% of the loan amount + GST

  • Late payment charges: 3% per month on overdue amounts (36% p.a.)

  • Cheque bounce charges: Rs. 600 per instrument per instance

  • Repossession/liquidation charges: 0.35% of the sale consideration + brokerage

  • Pre-payment/foreclosure charges: NIL

  • Swap/Switch charges: NIL

Are there any penalties or additional charges for pre-paying or foreclosing a loan against securities?

No, Tata Capital does not levy penalties or additional charges for pre-paying or foreclosing a loan against securities. You have the flexibility to close your loan whenever you choose without incurring extra costs. Common charges you should still be aware of include:

  • Processing fees

  • Annual maintenance charges

  • Late payment charges

What are the renewal charges for LAS?

Renewal charges for a loan against securities depend on the lender and the terms outlined in your loan agreement. At Tata Capital, renewal charges can be up to 3% of the loan amount plus GST. Since these charges may vary based on the specifics of your loan, it’s best to review your agreement or confirm directly with Tata Capital for the most accurate details.

What is the minimum and maximum duration of a loan against securities?

The usual tenure for a loan against securities is upto 72 Months.

What is the Loan-to-Value (LTV) ratio in a loan against securities, and how does it affect my available limit?

The LTV ratio is the percentage of your pledged security’s market value that a lender allows you to borrow. At Tata Capital, this usually ranges between 50% and 70%, depending on the type of security. The LTV directly impacts how much loan you can access:

  • A higher LTV means greater borrowing capacity.

  • On the other hand, a lower LTV means a reduced loan limit.

  • Changes in market value can increase or decrease your available limit.

How frequently does Tata Capital revalue my pledged securities portfolio?

Tata Capital regularly revalues your pledged securities portfolio to account for market fluctuations and ensure the loan remains adequately secured. The revaluation is typically done on a daily basis, though the exact frequency may depend on the type of securities you have pledged. This ongoing assessment helps determine your eligible loan limit and ensures compliance with regulatory and risk management norms.

What happens when the market value of my pledged securities changes or falls significantly (margin call)?

If the market value of your pledged securities falls sharply, Tata Capital may issue a margin call. This means you’ll be asked to either provide additional approved securities or repay part of the outstanding loan to restore the required LTV ratio. If the shortfall is not addressed within the stipulated time, the lender may liquidate part of your pledged securities to cover the exposure and safeguard the loan.

What is the current interest rate for a loan against securities in India?

Interest rates for loans against securities typically start at 9.5%, depending on factors such as the pledged securities, loan amount, and borrower profile. The final rate is determined after evaluating the pledged assets and overall eligibility.

Does the LAS interest rate vary for shares, bonds, and mutual funds?

Interest rates may vary depending on the type of securities pledged. Factors such as market liquidity, volatility, and risk associated with shares, bonds, or mutual funds can influence the applicable rate.

Are there any special offers on loan against securities interest rates for 2026?

Interest rate offers may vary over time based on internal policies and market conditions. Applicants can check the latest offers or updates on the Tata Capital website while applying.

How does the tenure impact my loan against shares interest rate?

The loan tenure can influence the applicable interest rate. Shorter tenures may sometimes offer different rate structures compared to longer tenures, depending on the loan terms and repayment structure.

What are the main charges included in a LAS agreement?

A loan against securities agreement may include charges such as processing fees, interest charges, pledge creation charges, and other applicable fees as per the terms and conditions of the loan.

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